Universal Health Coverage is Here Now (The Feds Just Don't Know Where To Look)

by: Harris Deitch

Greetings, Fellow Americans! I have sold health insurance for over 28 years and know what people want and need, which differs by age group. One problem we all face is paying for medical services with after-tax dollars. This must end for regular insurance (PPO) as it already has for Health Savings Account (HSA) insurance. So a $35 co-pay in a PPO plan will in reality cost someone around $50 in gross earnings to pay the $35 fee depending on tax bracket. You can include prescriptions, tests, hospital care, maternity, non-prescription medicines, bandaids, dental expenses, eye wear and related costs and much more. All of which are payable with after-tax dollars except for HSA plans. Almost all doctors are on some sort of PPO (Preferred Provider Organization) plan. They have a contract lowering their usual fee 40%. So if a doctor usually charges $80 as a show-up fee, the final cost to the patient will be 60% of that or $48. In an HSA, and hopefully all insurance, this is paid with pre-tax dollars thereby reducing the real cost to about $36 depending on tax bracket. This is about the same as the PPO co-pay with no administrative expenses for the insurance company thereby reducing premiums. Therefore I suggest all medical expenses regardless of plan be paid with pre-tax dollars with no maximum and indicated on Line 25 of the 1040. So, if this year's maximum contribution is $5900, it should stay the same for all plans with medical expenses being deducted out of the account. The exception being if medical expenses are more than $5900 for the year, which should be allowed. Let's look at some numbers. If in 2009 someone puts $5900 into his medical account, but only uses $1900. This leaves $4000. If in 2010, that same person has medical expenses of $20,000 he would use up the $4000 plus add $16,000 more. Therefore when he files his 2010 tax return, he would claim a deduction of $16,000 over and above all other deductions. The alternative would be to make no medical claims in a year and let the money accumulate until age 65. At this point all the unclaimed medical expenses for this person would be deducted from his account tax-free. All future medical expenses are tax-free. All other deductions are as ordinary income. Here's the plan: clinics need to be placed in retail stores like Wal-Mart, Target, Wal-Green's, Costco and others. In addition most towns have emergency drop-in clinics. The clinics are not hospitals, but are staffed by professional doctors and nurses. So if someone should happen to use a Wal-Mart clinic, they may get their prescriptions there and maybe buy some food or other items? So? This is why Wal-Mart is the number one retailer in the country. If there are no clinics nearby, than a local doctor or two can serve as well. All prescription charges should be exactly the same at all suppliers. All test samples such as blood, urine, PAP smears, etc. should go to Quest Diagnostics as their rates are 20% of regular rates. All monies in this account should be unattachable by the IRS or debtors or anyone else. We need to set-up a system based on gross income, not adjusted gross income that can be altered. For example, any family earning less than say $20,000 per year will get a RED CARD. This card has a magnetic strip on the back that is used to identify the person's signature and right forefinger print. If you want an annual pass to Universal Studios Theme Park, you must get a card and place your right forefinger on a device which records it on the magnetic strip. Then when you enter the park at a future date, you give the attendant the card and place your right forefinger on the device. A green light goes on admitting you to the park. We can do the same only enhancing the security with an electronic signature. When a Red Card person goes to a clinic, all the have to do is slide their card through the machine and place a finger on the device. This gives them free medical care. The clinic will charge the US its PPO rate. When the patient leaves, the clinic will send the data to the computer which will pay the clinic on the spot for services rendered. My podiatrist left the occupation because Medicare takes four or more months to pay him the fees. Now it is instantaneous. I have a feeling that the clinics will be thrilled to take a US PPO rate immediately rather than wait months. A clinic might charge someone $60. The US PPO fee will be $36 for the Red Card person who probably does not pay taxes in any case. Suppose someone makes from $20,000+ per year in gross income. This is a BLUE CARD person. That person can use the same clinics. However they will have to pay the clinic the US PPO fee directly. There are no charges to the government. Hospitals will give free coverage to all persons needing and wanting it. The hospital will pass the US PPO fee directly to the federal government and can be paid instantaneously as above. There will be one hospital per county as there mostly is now on the program. Should someone prefer to use their own doctors and hospitals, they may do so. After all this is America. People may purchase health insurance to cover their costs. All insurance should include complete medicals including colonoscopies like Blue Cross Anthem of NV and CO do before the family deductible. You can get a policy with them and get a complete medical exam for free the next day. Cool! The Uninsurables. Suppose Mrs. Jones has diabetes but no insurance. She is uninsurable with all companies. However, she should be allowed to join a local PPO just like an insurance company and pay the approximate $4/mo. fee. She can now enjoy using her own doctor @ 40% off as well as local ambulatory care facilities. She will even get a 40% discount at the local hospital of her choice or go to County for free. Prescriptions. Should someone make a fine living, they can pay prescriptions as usual. If someone is a Red Card, they can get free prescriptions. If someone is a Blue Card but with limited funds, they can pay 50% of the prescriptions with the Feds paying the rest. Money to pay for all of this. First, dispense with earmarks. That should net eight billion in the first year alone. Next add $1/pack for additional tobacco taxes. This will get many more billions. Add 10% to the price of all alcohol products. A simple 1% National Sales Tax can be created and added onto purchases. Our new Motto: Americans First. Thanks for listening! Harris Deitch