More than 45 million Americans do not have medical insurance either because their employers don't offer it or they cannot afford to buy it themselves. With insurance premiums doubling in the past decade, changes in the fundamental structure of the health care system are in the works. While there is political friction over exactly what needs to be done, some specific ideas have been proposed to make health care more affordable and accessible to Americans.
Electronic Health Information Technology
According to President Obama's Blueprint for Change, passing legislation that requires the health care industry to keep all records electronically will save money and lives. Using electronic record keeping will reduce the amount of waste created and storage space needed for the paper trail associated with the health care industry. Also, the accuracy of an electronic system can help prevent mix-ups when passing medical information from doctor to doctor.
Competition for Private Health Insurers
While there are arguments on both sides of the political aisle concerning whether the government should fund a national health insurance plan, such a plan would put downward pressure on health care costs because private insurers would have to offer competitive plans in order to retain business. They could charge more for premiums but would have to justify the value of their plan vs. the national plan.
According to the Healthcare Freedom Coalition, permitting interstate commerce for health insurance policies also would promote competition among insurers and force prices down. A New Jersey HMO family plan, according to the HFC website, costs $1,652 per month, while a similar plan costs $707 in neighboring Pennsylvania. Allowing consumers to buy insurance wherever they like would force providers to be competitive.
Prescription Drug Regulation
The cost of prescription drugs is rising almost as fast as insurance premiums. To rein in costs, one suggestion is allowing Americans to import these drugs from developed countries where the same substances are cheaper. This also would be a disincentive for large drug companies to pay to keep generic drugs off the market. Increasing the use of generic drugs in public health plans such as Medicaid also will reduce overall health , according to the Blueprint for Change.
Invest in Prevention
The demand for health care pushes prices up just as it does for any other consumer product. As long as the country continues to live collectively in a way that promotes bad health, more health care will be needed and costs will continue to climb. Eating healthy, exercising, quitting smoking and other common-sense prevention-based solutions will go a long way in reducing the need for health care and therefore reduce the amount of money we spend on it.
Health Savings Accounts
One suggestion for improving health care affordability includes building health savings accounts (HSAs) into government programs such as Medicaid and making HSAs available to all Americans so that they can choose their own doctors and hospitals. According to the HFC, this will promote competition among doctors and hospitals and force prices down while not interfering with free trade.
An HSA works by allotting tax-deductible money to an account set up specifically to cover costs. The account is partnered with a high-deductible insurance plan, and the idea is that these tax-free dollars will cover the deductible you owe should you need medical attention. Deductibles for these types of plans are often $5,000 for singles and $10,000 per year for families, according to HSA for America.
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