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Thread: Two Simple Proposals to Reduce Healthcare Costs
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Old 09-22-2009, 10:27 PM
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Default Two Simple Proposals to Reduce Healthcare Costs
First: make all Americans and all companies eligible for participation in The Federal Employees Health Benefits Program. There are a great number of plans, ranging widely in cost depending upon the benefits the individual or family is willing to pay for. In Florida alone, there are over nine companies offering over thirty plans. In a single stroke, this would solve the lack of availability of health care plans, the lack of competitiveness, exclusion for pre-existing conditions and the ability to drop individuals because of health problems.

Some low-income individuals/families would need government assistance in purchasing insurance, but the cost of this would be lower than the cost of treating low-income people in emergency rooms.

Second: Reform the medical malpractice legal system. To illustrate why this is costing us so much, I will use the statement by John Morgan of Morgan and Morgan law firm (you have seen him on TV) that they spend $20 million per year in advertising. If they seek only a 10 to 1 return on advertising, this means they are collecting in excess of $200 million dollars per year, primarily in the arena of Medical Malpractice. Their clients collect an additional $200 million, minimum, making the total of $400 million. This is for one law firm in a relatively small media market- #19 at the last time I checked. We are not talking NY city, LA, Chicago, etc. This is little Orlando. If we assume the Morgan law firm has cornered 20% of the market. Try to imagine the annual costs, if the #19 media market has $2 Billion in malpractice settlements. Try to imagine what the cost is in major markets!

We need to make the legal system in malpractice cases, a loser pays one. The real loser should not the plaintiff, but the lawyer who advertises, shows up in hospital rooms, mails letters encouraging people to sue, etc. This person should be held responsible for the costs.

If we do just these two things, then we no longer need to worry and argue about a government takeover of healthcare, or a change in the Dr. – Patient relationship.