What if health insurance were like other products on the market, say a cell phone. With a Cell phone you often times have to enter into a two year contract. Under that contract they will not increase you rate, and if you want to break the contract you have a financial penalty. Your term life policy covers a certain amount and is locked in for 20 years (granted you only die once).
Health insurance as it is now, there are no contracts, usually the insurance carrier will guarantee you the approved rate for one year, but you are not obligated to keep it for a year.
What if I could buy a five year contract for my health insurance? I would get my rate for five years, and the insurance company would know they are getting my premium for five years so it would benefit them as well. Now let’s take it a step further, what if I could get at renewal time a rate based upon my claim history. Now there would have to be maybe a maximum renewal amount if you have a bad claims history, but what if I had no claims for five years or under $5000 in claims in 5 years. Would it be possible to get the same rate, that I had five years earlier? Maybe I could get just a slight increase.
These things I am discussing are giving people incentive to purchase health insurance while they are healthy, and maybe an incentive to stay healthy.
Fixing the health care system in this country is not about providing free medical care, or making everyone purchase health insurance. If everyone is responsible and you give them incentive to stay that way, maybe we can fix this thing after all.
I am just giving you something to think about. Thanks for reading.