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A New Approach To Health Care Reform : Empowering Patients

Undoubtedly, our health care system has many faults. There is no single person or entity we can blame for all these faults – instead, it’s been a series of unfortunate decisions and events that have led us to where we are now. Health care costs have skyrocketed, health insurance premiums are often unaffordable, our medical and health records are unattainable, and Americans in general are unhealthy. And whether or not you agree with President Obama’s health care proposal, you must agree that we need some form of health care reform.

Naturally, there are a hundred different ways to approach health care reform. We can change little things, big things, a bunch of miscellaneous things – hoping to come out better in the end. You’ve probably heard several different proposals on health care reform – some good, some bad, some seemingly inconsequential. As part of the health care industry, we enjoy looking at these different ideas and envisioning how they might change our health care system – Which is how we ran across this insightful article by Don Kemper at The Health Care Blog.

Don’s strategy is simple: If you want a better system, support a smarter patient.

Don briefly mentions the significant cost comparison between McAllen and El Paso, Texas – something we’ve previously discussed. And while he acknowledges the importance of this example, Don feels that the more significant comparison is the one between American families. To prove his point, Don poses an example of two identical families – the Smiths and the Joneses – who have the same medical conditions, yet very different approaches to medical care.

The Smith family is a “doctor knows best” family that relies on the excellent physicians and hospitals in their community to keep them healthy or return them to health when they aren’t, but do little to participate in the decisions or the care. The Smiths accept whatever treatments their physicians recommend.

The Jones family also relies on the physicians and hospitals in their community. But they use health care decision tools and self-management information in combination with their doctors’ advice to make sure they’re getting the best treatment for them.

When Sam Smith’s back pain flared at age 45, he was quick to accept his doctor’s recommendation for an MRI and a visit to an orthopedic specialist to make sure it wasn’t serious. The MRI showed a possible cause of the pain and just to be sure Sam had surgery the following week, marveling at the efficiency of the system. The cost: about $40,000 for surgery, hospital, physician care and rehab.

When Jay Jones, also age 45, had an identical bout of back pain he reviewed a back surgery decision aid on the Web-even before his first visit. He learned that back surgery is not usually needed or always successful. For him the case for surgery was not very strong.

When his doctor recommended an MRI, Jay pointed out that a decision aid helped him learn that 50 percent of back pain cases go away in four weeks, 90 percent in six months, and only 10 percent of back pain cases need surgery. Jay also learned that MRI reports often find things that can lead to surgery even though they were not the cause of the pain. With that information he asked if he might put off the MRI and the surgery while he determined if his back would get better on its own-it did. The cost: $150 for the office call and $12 for the over-the-counter medications. Back surgery is among the most overprescribed treatments.

When Sam’s wife Susan, felt some chest pain after an argument with him, she went right to the ER. While the pain went away quickly, Susan accepted the recommended EKG just to be sure. And although she had no family history of heart disease, just to be sure she was also given a stress test, an echocardiogram, a mobile Holter monitor and a cardiac catheterization. She was happy to agree to anything that the doctors thought might show something. The cost was staggering-but the insurance paid most of it.

When Jay’s wife, Janice, felt similar chest pain she made a quick check with an on-line symptom guide. She self-assessed that she was not sweating, had no shortness of breath, she wasn’t vomiting or nauseous, the pain was fairly stationary and her heartbeat was steady at her normal 64 beats per minute. She also surmised that the pain could have been caused by a session yesterday on a new exercise machine at the gym. After confirming by phone with her doctor she decided to do watchful waiting to see if the pain went away-it did. The cost: $25 for the phone call to her doctor. As a bonus, her alertness to the possibility of heart pain caused Janice to renew her commitment to exercise and healthy eating.

When Grandfather Smith Sam’s dad and Granddad Jones Jay’s dad each progressed into advanced frailty with dementia, the pattern continued with the Smiths opting for a full medical response in their “at-all-costs” battle against death and the Jones opting for an approach which maximized family support and caring over treatment. The Smith to Jones cost difference was astounding.

via The Health Care Blog: Patient, Heal Thyself.

Interesting, isn’t it? You’ve probably never considered this point of view before – we’re so concerned about medical privacy that we often don’t consider how our friends, neighbors, and family members may be approaching their health care. Yet, this argument makes sense. If the Smiths are able to take a more active role in their health care decisions, it would greatly offset their health care costs. And this is why Don Kemper proposes his two-part solution: “Supporting the Joneses” and “Motivating the Smiths.”

Supporting the Joneses

  • Help people do as much for themselves as possible. We’ve been given the tools to become our own travel agents, bankers, web site developers, and video producers – the same theory should be applied to medical care. Provide easy-to-use decision aids and self-management guides to help people determine whether they should seek medical care, or monitor their own progress for a short period of time.
  • Help people ask for care when they do need it. Kemper proposes we given patients easy-to-read versions of the medical guidelines that doctors use. With this resource, patients can ensure they are getting the care they need, and only the care that is medically necessary.
  • Empower patients to say “No” to recommended care that is not likely to improve their health condition. With the right resources, patients should be able to decline duplicative or overly expensive testing and unnecessary drugs or surgeries that are not likely to make a positive difference in their lives.

Motivating the Smiths

  • Reduce medical co-pays for services that prevent future health complications.
  • Reduce medical co-pays or health insurance premiums for people who take an active role in their health care. For example, people who use online resources and patient decision aids to monitor their own health.
  • Provide incentives when patients obtain and maintain certain health and wellness goals. Not only will this encourage people to maintain a healthier lifestyle, but it will drastically improve the health of our nation.

Surely this won’t be the golden rule for health care reform. There will undoubtedly be many more changes that need to be made before out health care system is beneficial to everyone involved. However, this approach would certainly benefit the system. We’re interested in your thoughts – do you think this strategy would help the system, or is it too risky to ask patients to manage their own health?

Children’s Health Insurance: While NH Gives, CA Takes Away

You’ve probably heard that California is struggling economically, and there has been a bit of speculation that the state will soon be bankrupt. And unfortunately, the children’s health insurance program was one of the first programs to get cut. Healthy Families is California’s low cost insurance program for children and teens. The program provides health, dental, and vision coverage to children who do not have insurance and do not qualify for the free Medi-Cal program. Members of the Healthy Families program pay an insurance premium each month. The premium averages about $4 to $17 for each child, or no more than $51 for a family. Members also pay a co-payment (usually $5) when they go to the doctor or get other services, but some health care services are free of charge.

Sadly, Healthy Families was just notified that there is a drastic shortfall in the Healthy Families funding for the year, resulting in insufficient funds to operate the program. To ensure that expenditures to not exceed available funding, Healthy Families was forced to implement a waiting list on new enrollment, effective July 17, 2009. At this time, no new enrollees are allowed into the children’s health insurance program. California is the first state to take such drastic measures.

In happier news, the state of New Hampshire is the first state in the nation to expand their children’s health insurance program to young adults. The state’s Healthy Kids plan allows low-income families to purchase affordable health insurance for their children. Last week, Governor John Lynch signed a bill that would expand the program to young adults. The new expansion is designed to offer health insurance options to adults younger than 26 who earn less than $43,000 per year, and who cannot purchase health insurance through their families or employers. The adults will be required to pay the full cost of their premiums, so the plan should not be costly for the state or federal government.

The plan will include comprehensive coverage, including medical, dental care, and prescription drugs. Although the details of the plan aren’t worked out exactly, they have estimated the premiums to be around $200 per month. Healthy Kids is considering separating the children’s insurance pool from the new adult one. They want to ensure that this new expansion will not jeopardize benefits for children. An effective date for Young Adult enrollment has not yet been determined.

Forethought Life Insurance: Preneed and Final Expense Plans

While most people understand the concept of life insurance, all the details are a bit fuzzy. But no matter which way you look at it, life insurance is a great idea. It provides protection for your family at the time of your death, and allows you to set aside money to be used towards your final expenses.  We’re always impressed by Forethought Life Insurance  and the they continually prove to be an excellent resource for anyone looking for information on life insurance. As explained on their website, Forethought Life Insurance offers both Preneed and Final Expense insurance plans.

Preneed : The term “preneed” refers to the act of pre-planning for your funeral. This plan is for anyone who would like to choose merchandise and services to be used in their funeral, and set aside funds to be used towards those funeral costs. Although most people find the idea of pre-planning their funeral to be quite unsettling, it actually relieves much of the stress placed on your loved ones at the time of death. By setting aside funds for the funeral, your loved ones will not be confronted with unexpected funeral expenses during an already difficult time. Pre-planning also ensures that your funeral will be exactly as you wish: you will choose the merchandise and services yourself.

Pre-planning steps:

  • The individual will need to select a funeral home.
  • Once a funeral home is chosen, the individual will need to discuss the merchandise and services available. Final choices will be documented on a “Preneed Statement of Funeral Goods and Services.”
  • The individual will then want to start setting aside funds to be used towards the funeral expenses.

Funded funeral plans – or Preneed plans – are funded with a specialized life insurance policy or certificate of trust. These plans are designed to provide both security and protection from rising funeral costs. If you’re interested in setting aside funds for a Preneed life insurance plan, you’ll want to discuss your options with Forethought Life Insurance and a funeral home representative. At the time of death, the funeral home will provide all of your designated services and merchandise, and proceeds from your Forethought Life Insurance policy or certificate will be paid directly to the funeral home.

Final Expense : Final Expense insurance is whole life insurance coverage. In addition to your funeral expenses, this life insurance policy will also cover costs such as settling debts on credit card balances, car loans, mortgage loans, legal, and other expenses. If you’re interested in a Final Expense insurance plan, you’ll want to meet with a financial planning professional.

There are a wide variety of life insurance policies and final expense plans, so be sure to do your research and find the life insurance plan that best meets your needs. As with Preneed, you’ll also have the opportunity with a Final Expense plan to select funeral merchandise and services ahead of time, which relieves the burden on your loved ones. Final Expense Insurance plans are an excellent option for individuals who don’t want to pass on debts to their family at the time of their death.

We offer free quotes on life insurance, so feel free to do some research now. Simply enter your zipcode in the box at the top of the page to get started!

Creating a Public Health Insurance Plan Based On Medicare?

For most of us, trying to understand the intricacies of health care reform is nearly impossible. We can’t help but think that “health care for all” would be a great thing – but we’re scared by the phrase “socialized medicine.” We’re afraid that if we take a chance & agree to the reform, it will fail, and we’ll find ourselves in even more trouble than before. Yet we’re afraid that if we don’t reform the health care system, our growing medical debts will eventually consume us. It’s scary – and quite confusing, to say the least.

That’s why we’re grateful for the guys over at the Health Affairs website, where they try to make everything a little easier to understand. They’ve recently posted a very interesting article on the proposed new Public Health Insurance Plan – and how it should take a few lessons from Medicare. We enjoyed the article so much that we’d like to share some of its finest points with you here.

Top 5 Lessons from Medicare : How Medicare’s Strengths & Limitations Can Help Create  A Public Health Insurance Plan

1. Stability and Security : People can actually count on Medicare coverage. When you’re insured under a private health insurance plan or Medicaid, your coverage isn’t always dependable. Your insurer may drop you from your plan or raise your rates if you develop serious health problems. Medicaid benefits also change with every increase or decrease in state revenues. Yet, with Medicare, no individual is dropped due to health problems. This should definitely be one of the top priorities of a Public Health Insurance plan.

2. Uniform Eligibility and Benefits Nationwide : Medicare provides the exact same benefits and eligibility throughout the nation. Eligibility into Medicare is simply based on age or disability – to guarantee that the sickest people, who need it most, are able to obtain affordable health coverage.

3a. Transparency and Consistency of Benefits : Medicare benefits are explicit. They use consistent criteria for determining “medical necessity” and major policy changes are publicized well in advance so that enrollees and health care providers can prepare for the changes.

3b. However, the current Medicare program is a little slow to adopt changes. For example, adding prescription drug coverage to the Medicare plans took entirely too long. So, while the new public health insurance plan should follow Medicare’s transparency and specificity, a method of periodic review needs to be devised. The new public health insurance plan should include comprehensive benefits that are periodically reviewed for their adequacy and necessity.

4. Keeping administrative costs low : Somehow, Medicare consistently manages to operate with far lower administrative costs than private health insurers. These low costs are attributed to several factors, including pre-determined payment rates for most facility care and professional provider services, low expenditures of marketing, and consistency of benefits – among others. By keeping administrative costs low, the public health insurance plan would be able to keep health insurance costs low for the consumers.

5. Public Accountability : This is, perhaps, one of the most important lessons. Medicare is accountable to the public. The Medicare mission is to serve its enrollees and the public, and it answers to Congress for its actions. However, private health insurance companies are accountable to their board of directors and/or shareholders. Somewhere in the mix of it all, they lose a little bit of their public accountability.

This is really only the tip of the iceberg when it comes to the great health care reform debate. Tomorrow, we’re going to discuss an opposing view – one that discusses why our Public Health Insurance Plan should not be modeled after Medicare. Or, rather, why a Public Health Insurance Plan shouldn’t even be created. We’ll see you here tomorrow…

Children’s Health Insurance Programs Gets $40 Million In Funds

Kathleen  Sebelius, the HHS Secretary, has recently announced that an additional $40 million in grants will be available for children’s health insurance programs. These funds are part of the new Childrens Health Insurance Re-authorization Act (CHIPRA), the renewed version of the original SCHIP. The new children’s health insurance program provides a total of $100 million for outreach campaigns aimed at reducing the number of low-income, uninsured children in the United States.

The children’s health insurance program has been quite successful already. The CMS Center for Medicaid and State Operations has acknowledged that the states have already enrolled over 30 million children in Medicaid and more than 7 million children in CHIP. Yet there are still children out there who are eligible for coverage, but aren’t yet utilizing the state health care programs. This new $40 million in grants is aimed at helping community organizations, tribal organizations, states, and local governments to reach out to more children and families through outreach campaigns and other efforts.

Applications for the first cycle of funding are available at Grants.gov. The application due dates are August 6, 2009 for those submitted electronically, and August 10, 2009 for those submitted by mail. The grants will be awarded by September 30, 2009. To be eligible for these health care grants, applicants must be:

  • A state
  • A local government
  • An Indian tribe or tribal consortium or other tribal organization
  • A federal health safety net organization
  • A national, state, local, or community-based public or nonprofit private organization
  • A certified faith-based organization or consortium
  • An elementary or secondary school
  • A consortium composed of two or more of these entities

These new funds come as good news in a time when our health care system is faltering. According to the Centers for Disease Control and Prevention (CDC), the percentage of Americans with private health insurance has hit its lowest mark in 50 years. In the 1970s and early 1980s, nearly 80% of Americans had private health insurance coverage. In 2007, that number was at 67%, and in 2008 the number fell to 65%.

Fortunately, not all adults without private health insurance are uninsured. Public coverage of adults is rising in several states, due to expanded eligibility for programs like Medicaid. Still, the CDC has estimated that about 44 million Americans were uninsured last year. Fortunately, the public coverage of children has risen quite drastically over the last 10 years – now more than one in three children is covered by a public health plan.

Healthcare Reform Or Public Health For Everyone?

Health care reform is the hot topic right now. It’s all over the news and it’s become one of our government’s top priorities. President Obama and his administration talk about it quite a bit. They’ve been holding a variety of meetings and forums to discuss the topic and they’ve published several reports online discussing health reform. The official health care reform website, HealthReform.gov, hosts a variety of different resources on health reform.

We website features a “Health Reform Quiz” on the site – presumably to demonstrate how necessary health care reform really is. It poses 9 questions regarding health care, health insurance, and health reform, and then provides brief answers for each question. Although it seems like a compilation of interesting facts at first, after reading through it a few times, we don’t think its very effective. Feel free to view the complete Health Reform Quiz, but here are a few of the questions and answers that seemed unconvincing to us:

Q: Do more people die from work place injuries or from lack of health insurance each year?

A: 18,000 people die from complications as a result of being uninsured each year, while 5,657 people died from workplace injuries in 2007. In order to reduce preventable deaths it is imperative that health reform assures all Americans affordable coverage and improves patient safety.

Our Opinion: Does this comparison really matter? Why would they compare “lack of health insurance” to “work place injuries” – are they even connected? It would make more sense to compare the death rates of people with health insurance to people without health insurance. We fully understand that lack of health insurance can be detrimental to your health – but is this leading us to believe that you are significantly more likely to survive if you have health insurance? We’d like to see those statistics.

Q: True or False: Both men and women have a similar likelihood of being uninsured, but men are more likely to go into debt as a result of medical costs.

A: False: Women, especially in the deteriorating economy, are more likely to be adversely affected by the cost of are. They are 11% more likely than men to have medical debt or cost-related access problems. It is imperative that we protect families from high healthcare costs and that all Americans have quality, affordable care.

Our Opinion: I think they are missing the most important piece of the puzzle here: WHY? Why are women more likely to have medical debt? This question shouldn’t necessarily focus on the difference between men and women, but the reasons for health care discrimination. We’ve talked about gender discrimination in health insurance policies before – that should be the real topic of discussion, not who is more likely to go into medical debt. Fix the underlying problems first!

Q: Which is higher: the number of Americans who watch American Idol, or the number of Americans who lack a usual source of healthcare?

A: The number of Americans who lack a usual source of healthcare. 40 million people report that they do not have a usual source of healthcare while 25 to 35 million people tune in to watch American Idol. People most likely to experience a barrier to a usual source of care are uninsured and in the lowest income brackets. Providing a usual source of care will cost the system less and ensure better health. Health reform is necessary to reduce disparities and provide all Americans with quality healthcare.

Our Opinion: Again, this is just another silly comparison. When talking about health care, we’re considering the whole population: every single American living in this country requires health care at some point in their life. But when we’re talking about American Idol, we’re talking about a very limited portion of the population: only those who have the time to watch the show, and who are interested in that type of show. This question just seems like a feeble attempt to draw people into the issue by using the popularity of American Idol.

Honestly, it’s not that we’re trying to insult the Obama administration – we just expected more from their website. HealthReform.gov should be the best place to get information on health care reform, because it’s an actual U.S. Government web site, managed by the U.S. Department of Health & Human Services. They should provide a comprehensive, all-inclusive look at our nation’s health care system. They should discuss the advantages of health care reform, along with the disadvantages. They should talk about how they want to reform the health care system, and what it will mean to Americans. They should answer real questions, like how much this is going to cost our country, what the cost of health care will be for Americans after the reform, whether this reform plan will eliminate private health insurance companies, and how the changes will impact doctors, nurses, and health care facilities.

What health care reform questions do you have? With all the talk going on these days, it’s hard to know what to think sometimes.

“Health Reform Quiz” Questions and Answers via HealthReform.gov

Polling: Universal Healthcare or Private Health Insurance?

Our government has been in a constant debate over health care reform for quite some time now. It was one of the most popular topics during the Presidential election, and President Obama has made it one of his top priorities. Everyone knows that health care reform is necessary – but we can’t agree on how to make that happen. On one hand, we have the idea of Universal Health Care – where the government ensures that every citizen receives the health care they need. And on the other hand, we have the private health insurance system, which is essentially what we have now. We’re constantly hearing what President Obama and the Democrats and Republicans want to do, but we’re interested in what you think is best. You’re the citizens of this great country, and you’re going to be the ones affected by health care reform. You have visited the doctor, waited in the emergency rooms, and paid too much for your prescriptions. Shouldn’t you have some say in this? We certainly think so – and that’s why were asking, “Would Universal Health Care Benefit The Citizens Of The United States?” We look forward to your answers!

Introducing Our New Insurance Forum!

Hello readers! We are so very excited to introduce you all to our new Health Insurance Forum! We receive such great comments and questions through our blog, and we wanted to find a way to open up the discussion to everyone who might be interested. We’ve absolutely loved having our Blog on this site, and we’re so excited to celebrate our blog’s one-year anniversary this month! It’s hard to believe we’ve been blogging about health insurance for a whole year; the time has flown by! In fact, we’ve had so much fun with the insurance blog that it inspired us to open the Insurance Forum. We so hope you will enjoy the Forum as much as we will!

It’s hard to believe how much has changed during this last year. Sometimes we feel like our Blog posts are “old news” and outdated just a week after we write them! During this rough economic time, everyone is talking about the economy, personal finances, employment, and health insurance. As the economy continues to struggle, more and more people are finding themselves without health insurance. And while we understand the financial struggles that many people are facing, we continue to stress the importance of a quality health insurance plan.

If you have a moment, please head on over to our Health Insurance Discussion Boards and see if any of the topics interests you. Our goal is to establish a friendly environment for health insurance questions, insurance concerns, and any other insurance-related discussions. We hope that the Insurance Forum will be a useful tool for many of you, including health insurance customers, health insurance providers, insurance agents, and brokers. How great would it be to post an insurance question online, and receive answers from several different resources within a few minutes or hours? That’s our goal with this new health insurance forum!

Although we welcome any and all health insurance questions and comments, our Health Insurance Forum is divided into 11 categories:

  • General Insurance
  • Car/Auto Insurance
  • Health Insurance
  • Life Insurance
  • Long Term Care
  • Universal Health Care
  • Health Care Reform
  • Final Expense Insurance
  • Insurance Agent
  • Insurance Plan & Provider
  • Insurance Quote

We sincerely hope that these discussion boards will provide a comfortable and convenient way for people to discuss their health insurance concerns and find the answers they need. We understand that insurance can be complicated, expensive, and sometimes even downright confusing! Let our Insurance Forum help you – from finding the right health insurance provider or plan, to saving money on health insurance, and understanding the terminology – we’re here to help!

What Happened To Our Health Care System?

Conversations about health care reform are heard everywhere these days. Our Government officials debate it regularly, the media discusses every different version of it, and the American public wonders if it will ever actually happen. With all these different ideas on how to reform the health care system, it’s easy to get confused and overwhelmed. And, frankly, it all starts to sound a little stale after a while. But, every once in a while, you come across an intriguing and thought-provoking article that really makes sense, like this one. We just happened to stumble across this article written by Atul Gawande of The New Yorker, and honestly believe it’s one of the best articles we’ve ever read on controlling health care costs and health care reform.

“The Cost Conundrum” is a long and detailed article, but it’s extremely interesting. Instead of writing a dry, humorless critique of the health care system, the author instead provides us with fascinating statistics, real-life examples, and even a bit of humor. Yet, through it all, Gawande makes his point clear: “we took a wrong turn when doctors stopped being doctors and became businessmen.”

To start, the article comments on how high our nation’s health care costs have become. Our country’s health care is by far the most expensive in the world. Money spent on doctors, hospitals, drugs, and other medical costs now accounts for more than one of every six dollars we earn. Health care costs have caused millions of families to file bankruptcy, and it has hurt our country’s global competitiveness. In fact, President Obama even acknowledged its effects in a March speech: “The greatest threat to America’s fiscal health is not Social Security. It’s not investments that we’ve made to rescue our economy during this crisis. By a wide margin, the biggest threat to our nation’s balance sheet is the skyrocketing costs of health care. It’s not even close.”

The article introduces the little town of McAllen, Texas. McAllen is located in Hidalgo Country, which has the lowest household income in the country. Yet surprisingly, McAllen is one of the most expensive health care markets in the country. Miami is the only other city that spends more per person on health care than McAllen – and Miami has much higher labor and living costs. In 2006, Medicare spent $15,000 per enrollee in McAllen – that’s almost twice the national average!

What’s the reason for these high health care costs? Unfortunately, it’s hard to say for sure. El Paso County is about 800 miles up the border from McAllen. Both have essentially the same demographics, a population of roughly 700,000, and similar public health statistics. The treatments and technologies offered in McAllen were comparable to those offered in El Paso. Public statistics show no drastic difference in the supply of doctors. But health care costs in El Paso are much lower than those in McAllen. In 2006, Medicare only spent $7,504 per enrollee in El Paso – that’s half as much as they spent in McAllen!

So, you would assume that the quality of health care must be the big difference between the two cities, right? If everything else is the same, yet McAllen has such high health costs, the quality of care offered there must be better. Right? Not according to statistics! Medicare ranks hospitals on 25 metrics of care. On all but 2 of these, McAllen’s five largest hospitals performed worse, on average, that the hospitals in El Paso. So, if it’s not quality of care they’re paying for, what exactly is it?

To put it simply, it seems that the doctors in McAllen are more revenue-focused than most other doctors. They find ways to increase their high-margin work and decrease their low-margin work. They order expensive tests and rely on surgery even when it’s not necessary. In fact, one hospital executive in McAllen accounts several cases of outright fraud: “I’ve had doctors here come up to me and say, ‘You want me to admit patients to your hospital, you’re going to have to pay me.’” He said they always requested over $100,000 per year – and sometimes as much as $500,000 per year. And although he stressed that this was only a few doctors, he also acknowledged that he had never been asked for a kickback until he came to McAllen.

On the other end of the spectrum is the Mayo Clinic, one of the highest-quality, lowest-cost health care systems in our country. The basic view of the Mayo Clinic is: “The needs of the patients come first” – not the convenience of the doctors or the revenues. A few decades ago, the Mayo Clinic decided to work on eliminating as many financial barriers as possible. They pooled all the money the doctors and hospital system received, and they started paying everyone a salary. This way, the doctors wouldn’t focus on trying to make more money by ordering unnecessary tests and medical procedures. Instead, they simply focus on what is medically best for the patient.

When you contrast and compare these different hospital systems: McAllen, El Paso, and the Mayo Clinic, it’s easy to see why our nation’s health care system has become so uncontrolled. Health care reform is absolutely vital for the financial stability of our country and the overall well-being of our people. If you get a chance, read through Gawande’s article in The New Yorker. It’s absolutely astounding, riveting, and inspiring.

As America struggles to extend health-care coverage while curbing health-care costs, we face a decision that is more important than whether we have a public-insurance option, more important than whether we will have a single-payer system in the long run or a mixture of public and private insurance, as we do now. The decision is whether we are going to reward the leaders who are trying to build a new generation of Mayos and Grand Junctions. If we don’t, McAllen won’t be an outlier. It will be our future.

- Atul Gawande

via Annals of Medicine: The Cost Conundrum: Reporting & Essays: The New Yorker.

Students Need More Health Insurance Information and Education

University Student Insurance

We’ve discussed the importance of health insurance many times before. And as the summer season rolls around every year, we try to encourage college graduates to research their health insurance options and establish a good quality, affordable health insurance plan as they begin the next phase of their life. We often think that college students either don’t care about health insurance or consider it an unnecessary expense, because so few college graduates actually take the steps to obtain health insurance after graduation.

However, United Health Care has discovered something completely different. According to a recent study done by UnitedHealthCare, 82% of young adults actually do believe that health insurance is a necessity that they cannot ignore. However, more than 50% of them feel that they lack the information needed to make good decisions about their health care coverage. Even though they fully understand the importance of health insurance, they don’t know how to research their choices and find a suitable health plan.

An online poll was conducted among 1,000 students between the ages of 18 and 21. And while an overwhelming majority of them ranked health benefits equally as important as salary in their job search, an astounding 67% had not made any plans for health insurance coverage after graduation. This number jumped to 72% among students who were currently covered by their parent’s health insurance plan.

  • 69% of students currently covered under their parent’s health insurance plan didn’t really understand the details of their current health coverage
  • 26% had no idea when their health insurance coverage would end
  • 55% of students surveyed felt that their parents had not shared enough health insurance information with them
  • 87% strongly believe that schools and educational institutions should be doing more to communicate the basics of health insurance to students, in an effort to prepare them for graduation
  • Overall, 83% of the students said they had no idea about the kinds of health insurance policies that exist for young adults between jobs.

Short-term health insurance plans are designed with college graduates in mind. These health insurance plans aim to fill in the coverage gap while the graduates are transitioning from school to work. These health plans are quite affordable for college graduates, and provide a certain sense of security as graduates begin their new lives. Yet surprisingly, 83% of the students surveyed in the poll had never even heard of short term health insurance.

United Health Care offers a short-term health insurance plan through their Golden Rule Insurance Company. These short term health plans offer coverage for one to six months, with a range of deductibles and payment options available. The short term health plans are easy to understand and only require a simple and quick application process. When the health plan expires, the customer can reapply for a new plan if health insurance coverage is still needed. Additionally, these health plans provide flexibility, allowing customers to drop the health insurance plan at any time without penalty.

Young adults recognize the importance of having health insurance coverage but are ill-prepared to make good decisions about it when they leave school. Graduates are entering the real world without a sense of what to look for in a health plan and how to find coverage that is right for their needs.

- Richard A. Collins, President of UnitedHealthCare’s individual line of business and CEO of United Health Care’s Golden Rule Insurance Company

via UnitedHealthCare: Study Reveals Lack of Information, Not “Invincible” Mindset, Stands Between Young Adults and Health Insurance