[Winona Online Democracy]

Paul,

Two issues regarding MCHA and "medical assistance" that are barriers to
utilizing them (by either individuals or organizations) instead of other
higher priced insurance are:

1.  MCHA is only available if you have been "rejected" by other insurance
for a pre-existing condition.  So, as I understand it - if you were offered
insurance that was overpriced and you could not afford it (or, in the case
of an organization - you did not want to pay that rate), you would still not
be eligible for MCHA because you were not actually "rejected" for a
pre-existing condition.
http://www.mhdi.org/quality/health-plan-projects/95survey/sta/mcha.html

2.  I believe that "medical assistance" in Minnesota, falls under the
MinnesotaCare program.  To be eligible for that program, you have to have
been without health insurance of any kind for at least four months.  For
many families, it is not practical or prudent to drop your overpriced health
insurance for four months in order to qualify for subsidized insurance.
http://www.dhs.state.mn.us/HealthCare/archived/eligible.htm

These two items seem to be significant barriers to either negotiating lower
premiums as an organization or seeking lower priced premiums as an
individual.  I know that insurance is a complicated issue with many rules,
programs and options involved . . . am I missing something here?

-Steve Kranz


----- Original Message ----- 
From: "Paul Double" <[EMAIL PROTECTED]>
To: "Online Democracy" <[EMAIL PROTECTED]>
Sent: Friday, October 24, 2003 9:49 AM
Subject: FW: [Winona] It's the Insurance Companies


Rich & Others

Public awareness is often critical to this discussion and is part of the
reason insurance companies are so successful in maintaining the status quo.

EVERY MINNESOTA RESIDENT is guaranteed the right to purchase insurance
coverage, regardless of their prior health under MCHA.  Those that can not
afford it can be covered under medical assistance.  Employers do not have to
stay in a group plan to protect someone in the group who has health
problems.  This is one of the most misunderstood assumption most employers
and employees have. WE HAVE NEVER FOUND A GROUP RATE OR COLA RATE THAT IS
LESS THAN MCHA.

A single payer system is "not" insurance it is used to set prices which is
what most people really are asking for.  The cost to process Medicare, the
model most use is estimated at 3 percent.  Yet Medicare contracts to
private, for profit, companies for the administration of it.  This would
tend to reinforce the argument that no government business can do it for
less.  People assume single payer and government insurance for all are one
in the same but that is not correct.  Their are many private, single payer
systems in place now and some that also do it for  3 % or less so the issue
is not single payer but price negotiation, price regulation or price
controls.  Part of the problem we have now is driven by Medicare as non
profit hospitals are forced to accept Medicare payments at less than the
cost of the services which then results in cost shifting to the rest of
their customers which include the 1/3 of the uninsured or self insured as I
prefer to call them.

This is what I think should be done and would meet the needs of the 98 % of
the population.

All medical expenses as currently classified as deductible should be able
paid by people out of pocket until they reach the 7.5% which is currently
exempted under the tax code.  Every individual or their employer is they
elect would pay $1.50 per the age of the person per month into a public pool
of dollars. For a family of four ages 38, 35, 12 and 10 total 95 x $1.50 =
$142.50 month or $1,710.00 year.  Once the 7.5% is spent 100% of anything
over that it is reimbursed dollar for dollar from the pool.  The 7.5 %
applies to those over 65 but the $1.50 is absorbed by the pool.  ALL
INSURANCE WOULD BE ELIMINATED. Government price controls "could be" used or
price enforced under the existing Robinson-Patman law.

I welcome others to run the numbers

Paul Double


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