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Healthcare costs are high due to government regulations that reduce competition and prevent patients from paying directly for healthcare!

 

Healthcare costs can be significantly reduced by changing regulations to allow Americans to pay “cash” at the time of the service for non-catastrophic healthcare services.

 

Studies show that doctors spend at least half of their time on documentation for the government and the insurance companies. Doctors also have to hire administrative staff to help with current coding requirements and collections challenges.

 

When a customer pays cash (i.e., payments of cash itself, checks, and credit cards) at the time of the service, many of these administrative hassles are avoided.

 

This proposed system is more efficient in that it frees up doctors to see more patients, thereby significantly reducing the cost per visit.  The reason that most patients do not pay “cash” now is because cash payments are usually not tax deductible.

 

So, let’s change to a Smart Premium Plan.

 

With a “smart premium,” part of the insured’s monthly tax-deductible premium is deposited into a “cash account” that the patient uses to pay for non-catastrophic expenses, while the other part of his/her premium pays for a catastrophic insurance plan. Government subsidies will help the financially needy pay their premiums. The “cash” account is the patient’s money, and once the cash account reserve builds up to a threshold balance, the insured’s premiums will be reduced.

 

This system would incentivize the insured to be healthy and to shop around for the best price on healthcare services.  In turn, this will result in better healthcare at a lower cost and more choice for the patient.