THE REQUIRED RADICAL REVOLUTIONARY REVOLUTION
Before I begin to describe the revolutionary revolution that I will present to you here I would first like to give you an idea of how it would revolutionize certain aspects of our present system.
Let’s take our medical insurance system, for example, where we pay an insurance company hefty fees to pay our medical bills.
I prefer to call it medical insurance rather than health insurance because we as individuals are responsible for insuring our own health via healthful habits. Our health insurance, to a large degree, is really in our own hands.
A so-called health insurance company is really an illness insurance company. It provides, for the most part, insurance for illnesses.
And the more unhealthy we are the more we get for our money. If we are healthy and instill healthful habits in our children and rarely need medical care then the hefty fees paid for medical insurance is money spent for which we get nothing in return.
Of course, in our later years the need for medical treatment becomes more extensive and expensive. In that sense medical insurance works like social security. Everyone pays into it to benefit everyone else.
But with respect to getting something for your money there could very well be an unhealthful psychological effect with such a system. If we are already spending money for medical expenses it’s like we’re investing in our ill health. So, why bother with the discipline required for maintaining ones health when one is already paying for being unhealthy.
Certainly if being sick impacted our bank account we might have a healthier attitude with regard to eating well and exercise.
Of course, medical insurance does have some nominal value in paying for physicals, blood work, X-rays and the like but it would be cheaper to pay out of pocket for those occasional procedures rather than overpaying via monthly insurance fees.
Also, the enormous profits of health insurance companies is money that people are being charged for as part of the cost of their payment plan.
Enter the required radical revolutionary revolution.
First of all, Banks would not be the commercial enterprises they are today but, rather, socio-economic enterprises. More about that in subsequent installments.
Medical insurance would be handled by this revolutionary banking system. A branch of the banking system would be a Medical Savings Bank MSB where everyone would have a Medical Savings Account MSA. The MSB would be a not-for-profit institution (not to be confused with a non-profit institution).
There would be no government involvement and account holders would pay for their medical expenses themselves with checks or debit cards issued by the bank that could only be used to pay medical bills.
Interest would be earned on these accounts as the bank would make prudent investments and in that sense operate as any other bank. Being a not-for-profit institution, however, the money earned on investments would also become part of the insurance pool. Staff and management of the bank would receive relatively modest salaries.
The population of the US is over 300 million. So, with full participation by every adult and those with children providing an account for each child the amount of deposits would be enormous. An average deposit of, say, $50 a week would amount to 15 billion every week, or 780 billion every year. That plus interest on investments made by the bank equals a considerable pool of money. And interest earned for individual accounts would be higher than commercial banks could offer and serve as an incentive to maximize one’s deposits. Account holders could make withdrawals, up to a certain percentage of their account, to use their money for other purposes.
Now, individuals would be responsible for paying their own medical bills but they would also be backed up by the bank. For instance, let’s say I have an account of $10,000 and I have a medical procedure costing $20,000. So, $10,000 out of my account is paid to the health provider and the other $10,000 is loaned to me by the bank to pay the full amount. So, my account is now overdrawn by $10,000. Now, let’s say the bank picks up half of what I owe and the rest is paid off by me over time with a low interest loan. The loan is paid off by making deposits to my savings account, which would be considered as normal deposits accumulating and earning interest. If over the next ten years or so I have no major medical expenses and my account without the debt would have been $30,000 would actually amount to something less than $25,000 given the deductions over time due to my debt.
Such a system would :
• Keep decisions about medical treatment between doctor and patient.
• Provide incentive for people to pursue healthier lifestyles than is now the case.
• Bring down demand for medicalcare and lessen the cost.
• Reduce operating expenses for doctors. Administrative costs would be a lot less for not having to field all the various health plans
presently in place.
• Make it so that the cost for health care would be market driven and much more affordable.
• Eliminate the cost of waste, fraud, and abuse.
Now, although the MSA bank would cover a portion of the debt incurred by some account holders, individual depositors would not be charged for anyone else’s expenses. Whatever debts the “bank” would cover would be furnished from the general pool. Like any bank one’s deposits are not kept in a drawer with one’s name on it, everyone’s money is used for bank business while individual saving and checking accounts show the full amount deposited along with any interest earned.
This would be a system where everyone contributes and everyone benefits. The rich, with sizable accounts, would be earning a hefty interest while the poor could be generously subsidized.
Another benefit of this system would be to the economy whereas businesses would no longer be paying for employees’ health insurance plans. This would free up a lot of money that could be used to invigorate the economy and produce more jobs with generous salaries.
Restricting payment for medical services to MSA issued checks or cards would ensure everyone’s participation. A low minimum weekly deposit would allow for those with lower incomes to participate.
