Health Care Simple as Streaming
Americans love having choice and control, and that freedom is one of the things that makes America great. In a free market, competition creates more choices at lower costs. Unfortunately for health care consumers, top-down government mandates and controls deny the choices that Americans enjoy in other markets.
Take streaming services, 83% of American households have Netflix, Amazon Prime or some other service. Watch whatever you want – comedy, drama, or documentary. It’s your choice…you know best what suits you.
Then there’s auto insurance, with ads from all the major companies touting the advantages of choosing exactly what you need. Why pay for something extra… just pay for what you need. Again, who is best suited to know what you need but you?
Yet the current health care system doesn’t provide that freedom of choice. Dominated by government and insurance companies, it is plagued by bureaucracy, inefficiency, and hidden prices. Even primary care has been marginalized by the consolidation of power in large corporations.
At the heart of the problem are government rules that deny Americans access to more affordable types of health care arrangements. Since the 1980s ten federal health care bills have been signed into law, imposing massive regulations on our health care system. These regulations have choked off innovation and squeezed out competition. And by limiting what health care providers can offer, they are taking away from patients that precious freedom of choice and control.
Democrats believe the solution is a complete government takeover of health care. They claim it will be at no cost to the working families “at the point of care.” Where Americans will pay is through higher taxes – 20% higher – and longer wait times and cost-cutting measures. California tried twice and failed to implement their single payer version, citing “crippling tax increases.”
More government is not the answer; more personal involvement is through an innovative health care plan known as the Personal Option. The Personal Option rests on a couple of key ideas. One, keep what already works well in the current system and fix what doesn’t. And two, people should be free to “personalize” their health care to fit their needs.
Expanding Direct Primary Care (DPC) is an important part of this plan. With DPC, patients make monthly payments to their family doctor for a defined set of primary care services. DPC cuts out insurance providers, and by saving the time it takes to fill out insurance claims and other annoying paperwork it allows longer in-depth visits between patients and doctors.
DPC patients have enjoyed a more relaxed visit with their primary care physician as well as the freedom to discuss more than one health issue during a single appointment. On average, DCP practitioners have fewer patients than practitioners accepting insurance. Having a lower patient workload allows the physician to become familiar with the patient’s history and needs.
Part of the cost savings due to reduced paperwork has not gone unnoticed by hospitals. Reducing the administrative work and debt collection issues have enabled hospitals to offer lower rates for services.
One study involving 922 hospitals showed cash prices were up to 68% lower than rates set by insurers. Now hospitals themselves are looking at the DPC method for their own employees.
The DPC model has been well received since being introduced, yet there are federal and state regulatory barriers that limit the number of Americans who can take advantage of its benefits.
At the federal level, the Internal Revenue Service has not clarified how they classify DPC. Despite there being no insurance company involvement, DPC could be classified as a form of “health plan” (i.e., insurance). Doing so would prevent patients from using their tax-advantaged Health Savings Accounts (HSA) for the cost of their monthly DPC membership. Clarifying that DPC is an HSA qualified expense would make these already affordable practices even more so.
States have several ways they can expand access to DPCs. For example, by defining DPC arrangements as financial contracts, thereby exempting them from insurance regulations. All States should allow DPC providers to dispense medications directly to patients, bypassing the costly middlemen, which has proven to be a substantial cost-saver in the states that already allow it. Finally, States should follow Maine’s lead and ensure referrals made by DPC physicians are honored regardless of insurance type.
Direct Primary Care puts choice and control for health care back into the hands of consumers. Whether its streaming service, coffee, or health care, Americans want and deserve their freedom to choose. Lawmakers should be looking for ways to increase choice by promoting this cost-saving alternative to the traditional health insurance reimbursement model.
Dr. Chad Savage is the founder of YourChoice Direct Care in Brighton, Michigan
