Proposed Solutions

Proposed Solutions

Rising Costs Solutions

One of the proposed solutions to rising costs deals directly with the concept that people will spend more when someone else is paying for it. Higher co-pays have been proposed for traditional Managed Care Plans such as HMOs, PPOs, etc, as a deterrent against wasteful medical usage. Wasteful medical usage causes indirect price inflation for everybody within their respective self-insurance, or insurance pool. Remember what the National Center for Policy Analysis says, “When we are paying our own medical bills, we are conservative consumers (Herrick).” When we are required to pay a more substantial portion of our medical bills such as a higher co-pay, the thought is will be more conservative consumers.

To address the Kaiser view which attributes cost problems to “medical technology” and the “costs of prescription drugs” a greater emphasis on using cheaper generic drugs rather than the expensive and many times, unnecessary brand name drugs, could significantly cut costs (Warden). This could be also be accomplished by allowing importation of prescription drugs. Senator John McCain espouses this belief stating importation is “another lost oppurtunity for cost containment.” He claims, “Americans spend hundreds of millions of dollars on imported pharmaceuticals – not because they don’t want to buy American, but because they simply can’t afford to (McCain).” Prescription drugs are much less expensive in Mexico, and other foreign nations. Mr. McCain says let’s have access to them, and feels Managed Care costs could be cut way down if we contract with those foreign companies. Those who oppose importations of inexpensive prescription drugs claim that we have no way of ensuring their quality. In a free market companies reputation will determine its demand, thus choice should be in the hands of the people, especially when it makes economic sense for everybody. To assume that the only country capable of quality prescription drugs is the United States is naive. Generic and importation of prescription drugs will also help curb the effects of the largest consumer group; an aging baby boomer population.

Changes in Legislation Solutions

Limiting the states ability to levy taxes and charge fees to a certain percentage would allow businesses and/or employees to better afford health care. Overtaxation of employers raises costs and kills businesses. Without businesses there are no jobs, and without jobs we have no economy. Businesses must be protected.

A cap on the amount of state legislation looked at per year (with federal government extension grants), would force legislators to budget time more efficiently. This would force the government to operate more like a business and focus on issues that matter such as Worker’s Comp, Managed Care, etc.

A solution to the problem of medical treatment of the uninsured is difficult to come up. Let’s start with two extremes. On one side the simple solution is to require individuals who have used medical services to pay the facilities back. On the other side, the uninsured status of individuals can be eliminated by instituting a socialized medical plan for all. Another solution to the problem could relate to the aforementioned limit of state taxation. By lowering taxes, perhaps companies would be able to operate at higher margins and be better able to fund employees health care.