How Healthcare Reform Should Be

The airwaves, newspapers, and talk shows are flooded with the "healthcare debate". Who is right and who is wrong, finger pointing, and mudslinging are first and foremost as opposed to finding a solution. Nationalized healthcare obviously is not a solution unless we plan to be further in debt in a few short years. Most people, especially those who are out of work, cannot afford private healthcare. And the rest, those who get healthcare from their jobs or on their own, are struggling to pay premiums or are met with limitations concerning pre-existing conditions. None of the latter seems to be working. So where is the solution found?

I have a proposal that will end the healthcare debate, provide health insurance for all while not bankrupting the nation, and still keep the private insurance companies in business. This proposal will also help create jobs to help stabilize the economy.

Every state in the nation has some sort of Medicaid; insurance for low income individuals or families that live below the FPL (federal poverty level). There is also a program called S-CHIP (State Children's Health Insurance Program) that offers low cost insurance for families with children who are above the FPL but still cannot afford private insurance. (http://www.affordable-health-insurance.com/)

Now let us look at a few facts.

"In 2008, Medicaid provided health coverage and services to approximately 49 million low-income children, pregnant women, elderly persons, and disabled individuals. Federal Medicaid outlays were estimated to be $204 billion in 2008" (http://en.wikipedia.org/wiki/Medicaid)

"President Obama is proposing to begin a vast expansion of the U.S. health-care system by creating a $634 billion reserve fund over the next decade, launching an overhaul that most experts' project will ultimately cost at least $1 trillion." (http://www.washingtonpost.com/wp-dyn/content/article/2009/02/25/AR2009022502587_pf.html)

Of course, in order for the nation to get this proposed money for Obama's healthcare plan, taxes will have to be raised in the middle of a fallen economy. If each state, along with the current federal backing, implemented a family program similar to the S-CHIP that would cover the enitre family this would eliminate the need for taxes being raised.

With the current S-CHIP program, families pay in a yearly enrollment fee for a 12 month period and then pay a lowered amount for co-pays, hospital visits, emergency room visits, prescriptions, etc. Here is an example for Texas for a family of four making $3000 a month:

Yearly Enrollment Fee $35

Doctor Visit (when sick or in need of counseling) $7

Care in a Hospital (co-pay) $50

Brand name drug prescription $20

Generic drug prescription $5

Emergency room Visit $50

(http://www.chipmedicaid.org/english/cost.asp) And these prices are just for the children.

If this program was implemented for the entire family paying, based on their income, a reduced rate for their insurance there would still be money going into the program and at an affordable cost. It would not matter if mom or dad lost or changed jobs because that insurance would still be there. There would be no 90 day waiting period for coverage. Insurance would be had by millions of families and it would be affordable. And, if more people are clamoring to get a family program healthcare plan at a reduced rate, wouldn't the private healthcare companies, due to simple supply and demand, have to in turn lower their rates and eliminate the ridiculous rules of pre-existing conditions?

Our facts above stated that Medicaid had 49 million enrolled in 2008. Assuming some of those were families, we will divide that number by 4. That gives us 12,250,000 families. For examples sake, our family of four pays in $75 a month for this program. That makes $11,025,000,000 a year being paid into the program for affordable insurance. Approximately 12 million families would cover about one state. Imagine how much money would be paid in for all 50 states.

This program includes free yearly checkups and vaccinations, dental, and eye exams and glasses prescriptions.

Now imagine how many jobs would be created to take care of the influx of applications for people rushing to get affordable healthcare without having their taxes raised. Imagine the overall wellness of the nation for people who cannot afford healthcare now, the number of doctors and nurses that will be needed, the number of clinics and hospitals to be built making more jobs for construction workers and everyday laborers.

I am not an economist. I am just a mother and a wife who has had no insurance, has had company insurance, and has been on Medicaid. However, this option seems to be the most viable one to me.