Why does it take a cartoon to provide clarity on an issue where the
traditional media outlets and white papers can't. This cartoon looks at
the problems with healthcare, including the Obamacare program. I have
said this before and will continue to hound on this. The problem with
our healthcare is two-fold: one, we don't have the free market forces
working in healthcare and two, we have a medical reimbursement plan, not
health insurance.
Areas of healthcare exist where free markets
dictate, but it isn't the typical healthcare sections. It is areas where
insurance doesn't reign such as plastic surgery and veterinary
medicine. Plastic surgery use to be only for the wealthy. Today, average
folks can afford those tummy tucks, eye lifts, and breast enhancements
(which pleases the fellas) due to the same market forces that drive
computer prices down. The same for your pet. You can take Fido or Mr.
Bigglesworth to the vet and get a complete workup including X-rays or
scans in one visit without a long wait - no primary care permission, two
hour waits, and three weeks between each procedure. Both of these
industries have cut costs and provide better service because they
compete for your dollars without insurance company influence.
Most
people say market forces can work here because no one goes in for an
emergency boob job, but people do need emergency open heart surgery,
which is costly. I concede that, but this is where insurance should
emerge. Insurance was created to insure against risks you can not afford
to take yourself so you pool assets to guard against these anomalies.
This is why I advocate for high deductible policies that only kick in
for the big stuff. All routine medical items should be paid out of
pocket. This ensures insurance works as it should and brings the same
market forces to routine medical procedures just like plastic surgery
and the vet's office did.
The big cry for healthcare reforms like
Obamacare are the 40 million uninsured. To that I say, it isn't that big
of a problem. Most of the 40 million are not uninsured for the full
year. They are between jobs so they pick up insurance once they begin
their new job. According to FactCheck.org, almost 40% of this number are
adults between 18 and 34. These folks usually self-insure since it
makes the most financial sense. FactCheck also claims almost 12 million
of the uninsured are eligible for Medicaid, Children's Health Insurance
Plan or a state sponsored plan. Many don't sign up because they don't
know they are eligible or prefer to just visit the emergency room for
medical treatment. Another 6 million are illegal immigrants. In those
cases, I am hard pressed to pay for their premiums.
Insuring low income folks, which are clearly about 25% of the quoted
uninsured number, would be easy. Create high deductible policies and
then pay for the high deductible with tax credits. The cost would be
marginal and can be administered through the tax return. Anyway, enjoy
the cartoon and throw your two cents on the comments section.
Kirk Kinder, CFP® is the Founder of Picket Fence Financial, a fee-only financial planning and investment management company dedicated to saving folks from Wall Street. Picket Fence Financial does this through a few different ways. One, our fee-only approach ensures our advice is tailored to our clients needs and not driven by commissions. Two, we minimize costs for clients by utilizing low cost Exchange Traded Funds (ETF) and aligning our internal operations to keep our company costs down (and passing this along to our clients). Third, we offer a la carte planning, which means our clients decide how they want to work with us. Rather than forcing clients into our model of planning, we offer hourly, retainer, or asset management options (or a combination thereof).
All information on this site are the opinions of Kirk Kinder, CFP® and should not be construed as investment, tax, estate or insurance advice. Please consult your own specialist for personal assistance.
