Broken Health Care

We just finished filling out our tax forms. In so doing, we looked at all the money we spent on health care during the last year. For the vast majority of the year, we were completely uninsured. During the year, Ben had an ER visit, and I was pregnant. I payed something toward my total bill with every OB visit until I had applied for Medicaid. We originally hoped we could pay for the baby ourselves, but the ER visit, the new van, and the new roof really zapped our savings. Anyway, we were horrified and frustrated as we tallied up nearly $6,000 in medical bills! Even more amazing, though, was when we started discussing whether Ben and I should get insurance through his work this year. Last year the premiums for a couple were about $330. Hmmm, $330 times 12 months equals $3,960! That wouldn't include co-pays or other out-of-pocket expenses. For the whole family to be covered costs in the neighborhood of $600. That math comes to $7,200!!! So guess what? We actually SAVED money by not having health insurance.

I was actually quite grateful for this epiphany. I have felt bad and guilty about not having health insurance. It hasn't stopped me from getting my kids to the doctor for their well visits and shots, and we have all received the care we need. In fact, we have received substantial discounts because we have tried to pay up-front as much as possible. For my ultrasound, I was charged less than 50% what they would have charged insurance, and then they even gave me a partial refund after the fact.

Obamacare isn't the answer to this mess. There is a fantastic article I read a few months ago. I may have referenced it here, but if you haven't read it yet, you should: How American Health Care Killed My Father by David Goldhill.

There are several points of his that I want to bring up, however. One of the major problems that the author, David Goldhill, mentions is the "invisible" costs. Those who have insurance spend way more money on health care than those without. The difference is that it's not their money!

Also, Goldhill gives an example of the exorbitant costs that we actually pay through premiums and lost paycheck money due to the employer's share of the healthcare premiums.

Government funded healthcare isn't the answer, either. Other government-paid health care systems have grown at a similar rate to our own. Besides, who pays the government? US! It's still not free--the cost is just hidden from us.

As I re-read it, I find tons that I would love to quote. I can't quote it all, but I do have to share this one: "We all believe we need comprehensive health insurance because the cost of care—even routine care—appears too high to bear on our own. But the use of insurance to fund virtually all care is itself a major cause of health care’s high expense."

If you want to read his wonderful solution, jump to page 6.

So what did we do with Ben's enrollment at work? We signed the waiver and said we wouldn't pay insurance premiums. We just hope that nothing really major goes wrong before we can find room in our budget to pay for medical savings and a catastrophic plan.