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FAQ

How can one apply economics to health care?
I understand that this question may be interpreted this way- ‘Should economics be applied to Health Care (HC)?’, or ‘How to apply economics to HC?I am making an attempt to answer both aspects in one reply. I would like to address the first aspect from an ethical point of view with some history of the American Health Care system. Today’s insurance based system is a transformation of the simple Charitable, not-for- profit health care providing, localized system. That system had its roots in the religious institutions providing charitable care. The principle sources of revenue in those systems were the donations, grants and endowments. There was some fee for service revenue stream available on a sliding scale. Such a system obviously by its nature, was not focused on the financial bottom lines but on the providing community health care. The administration of course worked on the efficiency of operations and quality of care but it did not use economic models to make the financial decisions and was not affected directly by the cyclical events of national and global economics, although the local economics affected their financing. It all changed in the early to middle period of 20th century when Life Insurance companies began to offer free Health insurance as a supplement to attract the Life insurance client.After some time, when it became evident that the HC insurance was getting popular, it became an independent product line. With that for profit model, all aspects of economics(Supply-Demand dynamics, high skilled labor availability and the forces of market competitions etc.) became important and the risk management entered in the equation of profitability projections. The pros and cons about its effect on the HC in the US is obvious. For the pros- It became an industry by itself and growth of better services, more efficient and innovative research became a norm, and a modern HC we take for granted emerged out of the Not- for Profit, religious system. Population in general, has benefited by it and government sponsored and paid HC programs came in existence.The negative aspect (con) is, human morbidity and treatments became a lucrative commodity for the corporations to make wealth and the third party payer-the Medicare & Medicaid systems became part of the fast growing expendable budget item that brought the higher taxes.Now discussing the moral aspect of applying economics to HC for the citizens, we will have to take in accounts the ethical issues like, should a corporate for profit entity make money and distribute profits to its stock holders, pay high salaries and benefits to the top management while charging substantial amounts to patients and deny care to those who cannot afford to pay?Not doing so, will adversely affect the profits and from the point of applying the fundamental principles of economics, that is a not acceptable situation for the survival of the business entity itself. To choose an appropriate system that would fit in the moralist’s concept of Government supplied or religious, not for profit HC systems and also retain the current, Capitalist principle based (which the American population believes in)business model, is a paradoxical dilemma which the nation is trying to get her arms around since the first HMO act was enacted during the Nixon era. Building a template for how to apply economics to the National Health Care system will require lot more space than the space, time and expertise.
If I receive a health care coverage questionnaire from my current provider, am I required to fill it out?
I can't say whether you would be contractually obligated. It's a very good idea to complete the survey and send it in as the carrier may put claims processing on hold for you until it receives your updated information. This means your providers won't get paid and when they don't get paid it's you they will be looking for.The insurance company sends these questionnaires because when someone has more than one form of insurance the different carriers take on roles ‡ primary, secondary, tertiary, etc. The primary carrier pays first according to the terms of the policy. The secondary company will pay second, but they will only consider what's left after the primary pays.For example, let's say your ER visit was $2000. Your deductible is $1000 with the primary carrier and the primary insurance pays $1000.Your deductible with the secondary insurance is only $500. The secondary carrier is now looking at a bill for $1000. They pay $500.In the end, you paid $500, primary paid $1000, and secondary paid $500.If you only gave the provider information on your secondary insurance, they would be billed that while $2021 (as the ER wouldn't know about your other coverage). The secondary carrier, knowing they're second, will insist it's sent to the primary carrier for payment first.If they don't know there's a primary carrier, this becomes a very different financial situation for them ‡ instead of $500, they pay $1500? That's your full bill less the $500 you pay out of pocket.Not knowing about the primary carrier just cost the secondary insurance an additional $1000.It's for this reason that they keep sending you questionnaires, and for this reason that they could hold off on processing your claims if you don't respond. In the end their goal is to save as much money as possible by making sure that they don't pay anything for which they aren't liable.
What is the best way to fill out an advance health care directive for a peaceful death (ie. stop fluids, stop food etc.)?
What is the best way to fill out an advance health care directive for a peaceful death ) ie stop fluids, stop food etc)?In New Zealand these are called living wills. Although living wills have no legal status they will be an indication of the person’s wishes.Two suggestions: that apply in NZliving will - get your lawyer to draft a living will. Tell your family, your doctor and any other medical people, andtattoo - some older people are having - DNR ie do not resuscitate tattooed on their chest.Best wishes
How would the US transition to universal health care via Medicare? Health insurance companies have big investments, would the government buy them out?
I think you slowly transition to it.For example, first steps might be:Lower the Medicare age to 55. Raise taxes to pay for thisThis will lower prices in the private insurance market by taking the older customers out of the poolAllow the government to negotiate drug pricesTry to get an agreement from private insurance companies to match the Medicare payment rate for services. This would level the playing field, reduce the cost of private insuranceLimit the maximum cost for insurance premiums, copays and deductibles for plans purchased on the exchanges to 10% of adjusted gross income. Raise taxes to pay for thisAllow people over the 55 to stay on their business insurance if their employer provides it, and give business a tax credit for paying for their insurance.Allow anyone under 55 who wants to buy into the Medicare program with the option to do so. This option would be on all ACA exchanges so there would never be a situation where someone had no insurance optionKeep medicaid, the VA and other programsOvertime reduce the age lower, next to 50, then to 45 etc.
why are millenials complaining about free health care and how good boomers had it under the original gi bill when it only applied to ww2 vets after all the gi bill still exists today cant they just join the army.
I am thinking of the old cliche: You get what you pay for.Over the years, many veterans have paid with their lives by serving their country. Many veterans have paid with their health. Veterans paid by giving up their liberties and many of their freedoms to serve-out their contractual obligation to their country, and to the people who do not serve.If you want benefits, all you have to do is commit a few years of your life to the service of your country, and the people who do not serve and you will get benefits.People who do not serve, but who also want the same benefits are usually those who are too good to lower themselves to military service. These people want the benefits, but don’t want to risk their lives, nor give up their freedoms to do what they want without having to be granted permission.Freedom comes with a price, yet veterans are the only ones who actually pay the price—and they do it for you.So then, what are you willing to do in order to get the same benefits that veterans get?It is odd, to my way of thinking, that people believe that just being born should be the golden ticket for free lunch for the rest of their lives.