Finances of Health Insurance (Part 1)

Today I want to talk about the inner workings, or funding, of Health Insurance. Have you thought about how it costs an individual to pay for a health insurance policy? Never mind my contention that owning a policy does nothing to insure anyone is going to have good health because they own a health insurance policy. My definition of Health Insurance is that a policy is simply a financial plan that may or may not pay for your medical services. Common sense should tell everyone that paying money for health insurance premiums is simply an extra expense layer on top of your actual medical expenses. The same reasoning goes for co-pays which far too many people equate with the cost of medical services.

When did this crazy medical accounting system begin, and how did it get so pervasive? As a pharmacist in the early 1960’s I remember having customers ask me for a list of their prescription purchases for the year. At first, I thought the lists were to justify income tax deductions, but as time went by I learned that some customers owned insurance policies that would reimburse them for some of their medical expenses.

Obviously if a contract existed for these services, it was between the customer and the insurance company. As a pharmacist my fiduciary responsibility was to the customers and not to the insurance companies. I provided the necessary information to customers because I owned a “service business” called a pharmacy.

That all changed starting about 1967, when the government politicians began buying votes by claiming that too many children were not receiving proper health care. That was the hoax politician used to begin the health care crisis we have today. I contend we have more children today in need of better health care, percentage wise, than in the 1960’s. If this were not true we would be hearing about it from politicians and the news media twenty-four hours per day. Instead we hear endless blather about everyone needing health insurance for better health and that is pure nonsense.

I don’t have space in this issue to expand further into the financial details of health insurance policies, but I thought it important to explain a little history of how this all started. In the next issue I will begin the discussion with information from an economist evaluating the ACA with no experience in the health field. Feel free to share this with your family and friends because the more people know about health care truths, the better chance we have to remedy a bad situation.