TOM TOMORROW: Doctor Hand! ("How Can They Stay in Business if They Have To Insure Sick People?")

[GreenStormCloud]

19. Exactly.

Insurance works great as life insurance, car insurance, fire insurance, etc, but is lousy at health insurance.

Prior to Medicare health insurance policies terminated at age 65. All old folks had no insurance except their own money. Medicare solved that. Expanding Medicare, and taxation to cover it, would solve the problem.

There would be huge cost savings too. Health insurance companies spend a lot of money to make sure they aren't being cheated by pre-existing conditions, and commissions to sales agents, and other overhead. Typically they only pay out about 60% of the premiums they take in, except for genuine groups through employers, then they pay out much higher percentage. People would not be paying out the higher insurance premiums, but would pay a lower tax amount.

Doctors would not have to have staff doing as much paperwork, thereby saving money.

Hospitals would be paid for everybody, instead of cost shifting for non-payments. Cost-shifting is the industry term for raising prices to cover losses.