Healthcare is not the problem

HEALTHCARE is not the problem

As most know, this is breast cancer awareness month. However, one needs to be aware of the risks of being diagnosed with any form of internal cancer.

1 in 2 or 1 in 3

If you are a male then the first numbers apply to you. Female is a little better, 1 in 3, but to me just as frightening. Let me also give you a few other statistics:

• 62% of Bankruptcies in 2007 were due to medical expenses
• Most medical debtors were well educated and middle class
• 3/4 of individuals filing bankruptcy had medical insurance (American Journal of Medicine 2009)

Most look at these statistics and think, as many elected to office, that it is the health insurance companies fault for these statistics and tragedies. Realize that the best health insurance does not pay for everything. A lot of these families who filed bankruptcy in 2007 would be in the same peril today irregardless of reforms.

Health insurance is designed to do one thing... Pay for health related procedures. Cancer is not only physically debilitating, but it is financially devastating. The building co-pays, deductibles, and unreimbursed medical expenses may not put one financially under. However, imagine the debt amassing with the aforementioned expenses coupled with a families normal expenses. The families health insurance is still doing its job, but where does the family go to help with these new expenses? I mentioned that cancer can be physically taxing. If the primary bread winner in the family is unable to work, then I ask again where does the family go to get relief from the escalating debt? Spouse and other members of the family will be affected having to help with transportation to appointments; affecting the household income yet again. These scenarios are alarming, but if a child is affected the debt is increased exponentially.

EMPLOYERS... Now What?

The employer is now looking at having to make a business decision about a sick employee that may not only affect morale of the work force, but it may affect his or her own morality. How can an employer ever be excited about offering an employee COBRA? Especially, at higher rates and with the reality that state disability is 50%-54% of the employee's income. Business is business but cutting someones health care when they need it most makes one look at their humanity. This disease affects so many that what is an employer to do in order not to set a precedent that may affect his companies solvency.

In the scenario above health care is not the problem. Services are still being offered to the affected individual. However, there are extenuating circumstances that are going to affect the types of services offered to this sick individual. Health care cannot stop the business owner from having make the difficult decision to terminate benefits for the employee. Health care cannot help increase the benefit amount from the state. Health care cannot pay for the individuals recurring fees for housing, transportation, food, and utilities. Nor do we want it too! Health care should concentrate on just providing services to help those injured or sick.

SOLUTION... could it be this simple

Supplemental insurance is quite simply the solution. Many employers, including state and local municipalities offer supplemental insurance to their employees. 1/5th of Japanese citizens have supplemental insurance policy specifically, cancer insurance (WJM, January 1998-Vol 168, No. 1). This has been on a steady rise since universal health care was established. You may not be a proponent of universal health care, but I had to state the facts.

Policyholders are covered for a wide range of "life's surprises" including catastrophic illness. Some of these policies will continue to pay the policyholder for as long as they battle the illness. Policies may cover experimental treatments, transportation, medications, lodging, etc. These policies are typically payroll deducted on a pre-tax basis, lower payroll taxes, and help to mitigate workman comp increases. Having supplemental insurance allows the policyholder to use the cash where ever it is needed. As Americans we need to take charge and protect ourselves. No matter how many changes are made in this "reform" there is no substitute for good old fashion common sense. Protecting yourself and family without depending on someone else is just sensible.

Look into supplemental insurance. It is just added peace of mind...