What would happen we all decided to stop paying for private health insurance?

[Old and In the Way]

What if we could, as the 99%ers, decide, as of 1/1/2012, we'll no longer be paying for private health insurance. Instead, we'll be putting our monthly premiums we pay into a medical savings account. (If you have private health insurance as a corporate benefit, you tell them, "no, I want the cash equivalent benefit, and I'll put in my private medical savings account".)

What happens then?

(1) Private health premiums revenue plummets, premiums start escalating, then the private insurers go bankrupt
(2) Public healthcare and single payer becomes the only viable option for all people that can coordinate and maintain an orderly healthcare system. Taxes will increase, but probably less than what e currently pay if everyone had to pay their fair share.
(3) Eventually we get a better healthcare system that's inline with per capita quality and costs of other developed countries.
(4) Collective action by individuals can drive the change if we really want it. "Occupy Single-Payer" has a nice ring to it


Seems like a powerful 99% solution to me...

[dkf]

1. Who has the opportunity to get a cash equivalent benefit?

Is that normal?

[SharonAnn]

10. Unless your Medical Savings Account has more than $200,000, it won't

begin to cover a serious health situation.

And, after you've used it up, you'll have to replenish it again which could take a long time of saving.

A Cash Equivalent may seem like a good idea, but it wouldn't go far if you get ill. Of course, if you stay healthy, you can keep the money.

But if you don't, then remember the Republican Plan:

1. Don't get sick.
2. If you do get sick, die quickly.

[Old and In the Way]

21. I know the "health savings account" idea foisted on us by republicans is a joke.

I'm suggesting taking Republicans up on their idea, doing this, and bankrupting the Private Health Insurance companies in the process. Force the restructuring of our healthcare system to a single payer model. Yes, taxes will go up because it's mandatory coverage for all. The upside if that the actual healthcare costs should go down over time as the model works to make preventative healthcare a priority, takes out the profit factor, and leverages the resulting buying power to really minimize taxpayer costs. The current free market model doesn't work for most of us now and, given our declining standard of living, will work even less well, going foward. Of course, those that hate public/socialized healthcare can opt out...but they won't get reimbursed by the government...they'll either have to pay for their free-market loving private insurance coverage or risk getting turned away from access. It's their informed choice, afterall.

[daggahead]

2. While we're at it ...

For those of us that pay on a mortgage, what would happen if we all "forgot" to make a payment one month?

[subterranean]

3. That might work if we were all healthy.

But it's not really a viable option for people with chronic or expensive health issues. Also, I've never heard of an employer giving employees a choice between health insurance or a higher salary.

[blm]

4. I've been thinking the exact same thing for about 8 years now.

.

[druidity33]

5. get out

of the way old man! You're trying to peek behind the curtain, and that's not allowed!

I like the cut of your jib, sailor!

:)

[Kennah]

6. Prince of Darkness, Sir. He's your 11 o'clock.

[handmade34]

7. I quit 3 years ago

...waiting for the rest to join me

[Warren Stupidity]

8. "cash equivalent benefit" - generally not an option.

and
(5) you or somebody in your family has a serious medical issue and you are now financially fucked.

No thanks. I can't do that to my family.

[FarCenter]

9. If the company buys insurance for $5000, its tax deductable to them as an expense

If they pay you the $5000, it is still tax deductable to them, but you have to pay taxes on the $5000 income.

There are pre-tax medical savings accounts, but not all companies have them, they have limits on how much can be saved, and they have limits on how long the money can be in the account until it is forfeited (although the details of these things may have changed somewhat).

So generally, company purchased private health insurance was a tax-favored arrangement. The companies liked it because it helps them retain employees, who lose this benefit if they leave. The unions liked this because it helps them get a benefit for their members that is subsidized by the tax policy.

But it is not so good for the workers.

[cherokeeprogressive]

11. Legislation would be written and passed to force us to...

oh wait.

[Zax2me]

12. Why stop there? Stop paying your mortgage.

The first thing that would happen is a lot of people in the health care industry would lose their jobs.
The second thing as a result of the first would be a collapse of the 99% to around 1%.

Saving you the trouble.
Not happening.
Not happening because it would not work.

[bluestate10]

14. Would a non-profit health cooperative work?

I understand that a coop would depend upon a base of healthy people that need nothing more than physicals to have it cover the expenses of sicker members. But if the coop was built on bedrock preventative medicine principles, some of the sicker people will become healthier, a small percentage of the healthy would become sicker. The risk of a coop, even a non-profit coop is that it would attempt to avoid taking in gravely ill people or people that are not gravely ill, but sick. Another risk is that if the members don't remain vigilante, those that run the coop would feather their salaries and benefits, eventually defeating the reason for the coop existing.

[Old and In the Way]

19. That would be a better interim solution. Why not have the Democrats

develop a plan? There are 40 some-odd million Democrats...seems like a large pool with ideal health/age distribution that would coordinate and run it as a not-for-profit venture. We make our premium checks payable to the Democratic Party Single Payer Healthcare Program. Put Howard Dean in Charge. You need proof of party affiliation and monthly premium payment. if you aren't a Democrat, we'll add a service charge (5% for Indies and 20% for Republicans). We kill private health insurance and provide motivation to join the Party for something tangible that is in the interests of all Americans. Republicans could promote their ideological preference and offer a competing free-market, private insurance option for their voters! Lets see who ends up with the more motivated voter.

[bluestate10]

13. You seem to be on to a powerful idea.

Either health accounts at financial institutions that are member oriented, or owned by members. Or health care cooperatives where premiums are paid into the cooperative. The cooperative would be non-government and it's members in states can fight to prevent state politicians from "regulating" the coop in a way that would favor commercial insurance companies that are taking advantage of rate payers. The cooperative can be run around the concepts of preventative medicine. Healthier members would help shoulder the cost burden of sicker members, but if the base of members is large enough, the assistance would not burden.

[mmonk]

15. Let's hold bonfires where everyone burns their insurance cards.

[lynne]

16. Not sure about your results of what will occur -

- Don't see how this would bankrupt private insurers. Stop paying premiums and all policies lapse. No new claims will be opened or paid. Existing and ongoing claims have already been accounted for within the companies profit/loss as the estimated amount of their total cost was reserved financially by the carrier when the claim was initially adjusted. Insurance companies will still have their assets and working capital which includes premiums previously received but not yet disbursed as claims. Far from bankrupt, they're actually sitting on money at this point. It will be a quick sale or merge for them and they'll get picked up by another insurance companies property/casualty division and everyone walks away with a tidy profit-sharing bonus. However, a lot of people will be out of a job.

Private Medical Savings accounts are a good option. Unfortunately, the cost of medical care is so expensive that, if its a relatively young account, it would soon be depleted in the event of a serious injury or illness. Until such time as we end the focus on insurance and decide to look at the cost of medical care itself, there will be no satisfactory answer.

[Old and In the Way]

20. Private-for-profit insurance companies make no profits with no revenue stream.

They have expenses, payrolls, and yachts that need to be covered. No profit, no reason to invest. No investment + no revenue means no business. True, there'd be layoff's in the claim processing divisions...but there'd be corresponding job openings to manage a Single Payer program. Instead of fighting to reduce/deny claims to make a profit for the shareholders...they'd actually get paid to make the system work for all of us.

[Amonester]

17. #1 - The non-Insurance corporations would face bankrupcy.

#2 - Their employees in Congress would bail them out.

#3 - Your plan starting at (2), or Medicare for all.

[dd2003]

18. Thailand is the answer

The doctors are great over there and the hospitals are remarkably clean and well run.