Representative Kevin Brady, R-TX and Chairman of House Ways and Means Committee, described the plan to replace the Affordable Care Act (ACA) aka Obamacare.
The summary highlights are, “Our proposal is like a health-care ‘backpack’ that provides every American access to financial support for an insurance plan chosen by the individual and can be taken with them job-to-job, home to start a small business or raise a family, and even into retirement years,” Rep. Ryan wrote in a summary.
Before going into more detail, it is important to note that a great “backpack” should be increased knowledge. Without knowledge, no matter how good anything is, if the person does not know what they are getting, how to use it, or why they need it, it is useless. It is like giving an obese person a treadmill, but not finding out if they have a medical condition that has caused the weight gain, or if they know how to use a treadmill, or understand dietary allergies, or if a life situation has caused over-eating and by correcting that one thing it will reduce the weight.
One of the contentions that Rep. Ryan made was that the ACA does not allow the power to individuals to choose the options that are right for them and which cost them dramatically higher health care costs. He also stated that the ACA has forced millions of Americans to pay more for inadequate plans with fewer options.
The problem with this is that the Insurance Agent has been removed from the equation, which has left those millions with inadequate individuals from CMS giving advice on plans that they should not be given. Many are choosing plans based on price rather than actual need. An Insurance Agent does not need to be paid to give guidance or direction, yet, most Americans do not know that they can use an Agent to help them choose the best plan for their needs, which can dramatically reduce unnecessary costs.
Rep. Ryan continues on to explain that the proposed plan allows consumers to use Health Savings Accounts that they can use towards healthcare expenses, medications, and dental care. Again, I will state, it is still important to educate consumers on how to use these types of plans because most do not know how to use them. Additionally, these plans are not for every consumer.
And, the need to spread Insurance Companies costs is important. Younger consumers need to see the importance of having coverage, which helps the older individuals keep costs down because if only those that are sick and older are obtaining insurance, costs will increase much faster than if a pool of risk are together. For example, if you pour a cup of bleach into an Olympic size pool, it will not do anything, however, if you our it into a small glass, it will have a large impact. That is what will happen to the insurance companies when all they have are high risk members, which translates to losses and ultimately an impact on the companies’ financial stability.
Although I agree with Rep. Ryan that things need to be improved with the ACA program, I disagree that having a different government law will be much different.
What is truly needed is EDUCATION and the involvement of Insurance Agents to help consumers understand what they need, how to use it, and be there for them during the year to answer questions and assist with claims.
Let’s put our ego’s aside and find the root cause and fix that one thing that can make things much better for consumers.
What's your opinion?