….. the Magic Santa snapped his fingers and made all “comprehensive” insurance coverage (see note) just vanish from the face of the earth (or for the sake of this question, from the USA), and all medical insurance sold was for catastrophic coverage only (acknowledging that catastrophic coverage will have to be defined), while the every-day, run-of-the-mill medical care was paid for out-of-pocket by the consumer (anything from normal check-ups, to cuts and scrapes, to broken arms); and the premiums previously paid for by one’s employer (or one’s own self) suddenly became income for the employee – but it was tax-free income to be placed in a medical savings/spending account, which could be carried-over from year to year, out of which the aforementioned every-day, run-of-the-mill medical care and catastrophic insurance coverage could be paid for; and, for those folks who required catastrophic medical care, but who either could not or would not buy catastrophic-only medical insurance – or who could not even afford every-day, run-of-the-mill medical care – could apply for “medical financial aid” (similar to college financial aid) – the funding for which is a side-issue – and be evaluated as to their ability to pay, perhaps being granted the aid, or perhaps being denied aid because they have the means (either present or future) to pay for the medical care received (again, similar to college financial aid); and, there was legislation passed for significant tort reform so that the competent medical providers did not have to pay exorbitant fees for malpractice insurance, and/or exorbitant settlements, and/or not be forced to provide what might be called “CYA” care; and, considering all the aforementioned conditions, the medical providers in question were free to set their own rates, not being dictated to by third-party payers, and the consumer could choose to either pay such rates or not, perhaps shopping around for better price and/or value?
Note: Comprehensive medical insurance coverage is defined as that which will pay for ALL medical care delivered (minus deductibles, co-pays, etc.), regardless of what it might be, or regardless of how large or small, or regardless from whom or what it’s received – usually paid for by a third-party payer, either an insurance company or the government.
“Medical financial aid”, as a side-issue: How might it be funded and/or administered? (Keeping it similar to college financial aid, the only difference, perhaps, is that it might be – indeed, probably would be – applied for after the fact instead of before, but not necessarily always being the case.)
Define “catastrophic coverage”, in regards to both delivery and insurance coverage.
Considering that question (or questions), what might happen to the cost, the affordability, and the availability of medical care for most, if not all Americans, if the consumer and medical providers were the decision makers, per se, instead of the insurance industry and/or some other third-party payer?
(I think that might be the longest question I’ve ever written!)
Edited only for the following:
Merry Christmas to all my TR peers!