Friday, July 23, 2010

Public Health Still Not an Option

Senator's Charles Schumer D-NY and Jay Rockefeller D-W.Va huffed and puffed but could not blow the private health insurance market down.

Though I am thankful that a Public Health Option still does not seem to be realistic possibility, this AP article only further displays the complete lack of understanding that US lawmakers have of the root cause for the HealthCare "Crisis", COST!!!!

I'm not trying to pretend Health Insurers have done anything to help mitigate premium costs. What I am saying is that Health Insurers are not the ONLY bad guys and girls.

I recently went to a broker conference for a regional not-for-profit health insurance carrier. At that conference this carrier broke out exactly where every penny of every premium dollar is spent. Did you know that for every dollar you and/or your employer spend on health insurance premiums over 61 cents of that dollar goes to hospitals and doctors? Did you know that 26 cents of that same dollar goes to home health care and pharmacy?

That means 87 cents of every health premium dollar you and your employer spend goes directly to health care!!!

So 13 cents of every dollar goes to the Health Carrier. Now to be fair, 11 cents was going towards Administration costs and 2 cents towards surplus, so its not like the carrier was just banking all that cash.
What I want you to take away from this article is that COST is the infection creating the American Health Care Crisis. A Public Health option does nothing to cure our cost problem. With a Public Option, Health Insurance Premiums go down, Taxes go up...

I would love to hear your thoughts on this issue!

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