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As religious readers of my blog know (and there are, at best, three of them), I've been marketing consumer driven health plans for years -- way too many to count.

One of the key reasons why people should opt OUT of co-pay plans and opt INTO a high deductible plan is that if everyone did it, the cost of health care would drop by a country mile, almost overnight. Why? Because people would take responsibility!

I took my old beat up Honda (I luv that car, don't get me wrong) to the Honda "dealer" recently for an overpriced oil change. While there, I asked about a replacement strip of weather stripping for my door. They wanted $80 for a $2.00 piece of rubber!

I also needed to replace two radiator hoses. The dealer wanted $340. I took the car to a radiator shop. They wanted $80. Where do you think I ended up getting the work done?

But does anyone ever question the price of services at the doctor? Or the emergency room of all places?

Why should they, when someone else is paying the bill?

Here's a great article from the Dallas Morning News. Learn how one lady saved a few thousand dollars just by asking a few questions before her daughter had "emergency" surgery in the ER. Learn how some other people cut the cost of a migraine medication Rx from almost $29 PER PILL to $3.66 per pill.

Moral of the story: Be a better consumer!

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More and more hospitals are checking credit before providing expensive treatment, especially to people who carry no health insurance.

But it may not be what you think. Check out this example:

A woman in Dallas received over $100,000 in free treatment for skull and neck injuries suffered in 2005. Then in 2006 when she returned for a scheduled cat scan, she was denied.

Not because her credit was too low, but because it was TOO HIGH. To the hospital, she no longer qualified as indigent based almost exclusively on her increasingly positive credit score!

Other examples and more analysis are contained in this article from Business Week.

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I've been marketing health insurance since 1980. And since that time, my motta has been:
"If you can't afford a Cadillac, buy a Chevy."

Now, at last, the Governor of a state (Tennessee) is on board with me.

While other governors and know-it-all legislators are intent on "first dollar, full coverage" health care for everyone -- those are known as Cadillac plans -- Gov. Bredesen explains the Tennessee approach:


We need a national health-insurance solution, but isn't it sensible in the meantime to make sure everyone has a basic health plan before we give a few more people a perfect but expensive one? Shouldn't we make sure everyone at least has a Chevy rather than providing a Cadillac to a few and letting the rest walk? We're trying that in Tennessee with CoverTN.


Is limited health care coverage better than none? Ask the lady referenced in the article whether she would have preferred not to have to put $9,000 on her credit cards to cover unexpected medical bills from a tick bite.

There are two ways to buy a health plan at a Chevy price:
  1. Buy a policy that has excellent coverage for very large expenses, but take a high deductible.
  2. Buy a policy with a low deductible and perhaps a co-pay benefit that has very limited coverage for large expenses.
In other words, you have to make a decision whether you want to be more responsible for unanticipated medical bills on the front side or on the back side.

Front side expenses are more likely to be incurred -- everything from a minor ER visit for stitches to a coronary attack always start with the first few dollars.

Large back side expenses are less likely to be incurred -- but can often result in bankruptcy if not properly insured.

Today, I recommend basic coverage as an option to no coverage for folks because the "band aid" approach makes more sense than no coverage at all.

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As reported by the NY Times, one of Obama's most impressive campaign promises was that no appointees would be " permitted to work on regulations or contracts directly and substantially related to their prior employer for two years."


Obama's pick for Secretary of Health & Human Services, Tom Daschle, has spent part of the past 4 years serving on the board of the Mayo Clinic, in addition to advising numerous clients regarding health care issues in his position as a lawyer at the firm Alston & Bird. Much of this work has in fact occured over the past two years.

Sounds like Obama is in a pickle.

Why would he make such an appointment?

At this stage, it appears as though his staff is going to great lengths to explain that Mr. Daschle is not an appointee, as no official appointment has been made; rather, he is merely an individual who has accepted an INVITATION TO BECOME AN APPOINTEE.

Remember how Obama reneged on his promise to accept federal campaign funding?

Anyone else starting to think that Obama only adheres to his promises when it is convenient for him?

A keen insight from JudicialWatch.org

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well, sort of.

There's a catch. A big one.

They want the government to mandate coverage - - for everyone.

The industry's largest support group, AHIP, has set forth a proposal under which insurers would accept individuals with pre-existing coverage, so long as everyone is required to carry insurance.

Obama opposes mandated coverage
. Hillary (& others) supports it.

This is going to be fun.

The insurers, of course, are right. They know their business better than the government. People like Hillary and Obama just kick back and enjoy the benefits of their cushy government jobs. They don't truly understand the wheels behind the machine. How could they?

Cherry picking. That's the street slang for adverse selection in the underwriting process. If insurers are forced to take people who they ordinarily would not want to insure, then who is going to pay the bills? Answer: People who have no claims -- but still pay premiums. That's the way the game works. Shifting dollars.

Notice the irony yet?

Obama wants to "spread the wealth" around. Fine. Start with health care Mister President-Elect.

Prediction: Typical insurance premiums may rise by 30% to 50% by the end of Obama's first term.

CDR