“Universal Health Insurance Proposal”
There is a simpler way for Americans to be provided with health care; universal health care is and must be that solution. The United States should be the leader in making certain that every American has access to necessary medical care, 100% covered, no co-pays for anything. There are two parts to the system: the individual and the insurance company. The only responsibility that the United States government should have in this transaction is being the bookkeeper.
First, the individual: Whether minors (under 18) or adults, everyone would be treated as individuals; marital status is irrelevant. This sidesteps the issues of “living together,” “married,” or “divorced.” ALL citizens would pay insurance premiums (through paychecks or income tax or by making monthly “estimated” payments) into a national insurance trust fund. (Non-citizens would be allowed to join the system if they are legal, long-term visa residents. Temporary workers or students would have to provide their own insurance coverage.) Premiums will be fixed by Congress and adjusted annually (new rate would begin Jan. 1 of each year) according to a designated inflation barometer.
The first $24,000 (before income taxes) of an individual's income (regardless of source) would be exempt from the insurance calculation. A person with no income would pay no medical insurance premiums. Person A, with a $30,000 income, would pay on $6,000, the amount which exceeds the $24,000 exclusion. Person B, with an income of $75,000, would pay on $51,000 (75,000 minus 24,000). Person C, with an income of $250,000, would pay on $226,000 (250,000 minus 24,000). Person D, with an income of $5,000,000, would pay on $4,974,000 (5 million minus 24,000). If the fixed percentage was 10%, then A would pay $600 a year. B would pay $5,100 a year. C would pay $22,600 a year. D would pay $497,400 a year. Each person would have the same medical coverage and care. Money would no longer be an advantage when it comes to the most important thing in your life, your health!
While it will seem an unfair burden on the wealthy, the amount that they would normally give to charities (assuming that they do) could be reduced as they see fit. Medical care should be a “human right,” not a privilege based on social class or income. The percentage which I use could be lower, but I'm guessing that it might be higher. Regardless, while the dollars seem high to the higher income individuals, it is part of the civic duty that those who benefit most from our economic prosperity should be willing to pay.
Second, the insurance companies: Insurance companies which exist now can exist with this program. They receive a fixed monthly amount for each individual who signs up with their company. No one can be turned down, but individuals may only join one company, though they may switch once a year. Companies which provide the best service (since coverage is the same) will attract the most individuals. Profitability is determined by controlling their internal costs, negotiating drug prices, etc. Insurance companies are limited to a percentage profit annually, fixed by Congress. No insurance company will lose money in this system if operated efficiently.
Expensive treatments (cancer, surgery, etc.) will be reimbursed through the trust fund using a fixed cost, agreed upon by the insurance companies, doctors, and Congress. This utilizes a NATIONAL RISK POOL, that stumbling block which has caused so much trouble in the past when Congress and the President have tried to find a solution to the health insurance coverage nightmare. Any cheating by insurance companies, doctors, or patients will be dealt with through criminal and civil penalties, harshly!
This system could be set up quickly, cover every American, and eliminate the political haggling that only hurts people. Medicare would be rolled over into this system, thereby eliminating its existence. Employers would continue to deduct social security contributions but will change the Medicare portion to reflect the insurance rate that will be set by Congress.
Robert G. Butler
P.O. Box 193
Marmaduke, AR 72443
