Examining a Proposed Change
The purpose of writing this memo is to examine a proposed change of allowing all Medicare recipients to purchase high deductible insurance policies and use the premium savings to set up a medical account. Health insurance is paramount in enhancing the well being of an individual. When clients pay higher deductibles, the premiums they pay lower significantly (HealthCare.gov, 2019). Deductibles refers to the out of pocket money that one pays yearly before the insurance company starts covering for the care. Therefore, the policy should encourage Medicare recipients to buy high deductible health plans so that they can keep their premium payments low.
High deductibles are becoming more prevalent daily and a fundamental fact. Nearly all employed people have a coverage deductible of at least $1000. The exchanges of this silver plan are almost $4000. Previously, the assumption was that only care professionals could make or manage such decisions. The prevailing notion is that a considerable number of patients cannot make rational decisions concerning how best to utilize healthcare dollars. However, today it is common to find liberal democrats defending the extra out-of-pocket burdens that people encounter in the insurance exchanges they helped to create.
Although there is a remarkable change in attitude, some individuals are yet to comprehend this concept. Hence, there is a need to educate the Medicare recipients on the reason a high deductible provides extra benefits. Imagine a scenario whereby person A chose a $1000 deductible instead of $100. The reduction in premium is at least $900. Therefore, if one can risk an extra $900, it means that they can save all the incentives in a bank to counter the risk (Lo Sasso et al., 2010). The savings are worthwhile, and as days go by, and the client will realize that they were not foolish to make such a decision.
High deductibles health plans mean that Medicare recipients will spend more out of pocket money when they need to see a medical practitioner or filling a prescription. Therefore, this practice will lead a careful and selective use of the healthcare benefits which avoid any wasteful or unnecessary drugs or procedures (Henderson, 2017). For instance, one can opt to fork more dollars out of the pocket when treating minor ailments such as sore throat, cold, or achy knees to allow the health insurance benefits to cover severe other illnesses, including diabetes or arthritis.
Focusing on the economic incentive, if the medical services are free at the delivery point, and patients have an excuse to use it until it becomes almost unworthy to them. Undoubtedly, there could exist a significant deal of unnecessary care. Take a case whereby a middle-aged woman pays for a mammogram fee of $250. Higher chances are that the results of the test will be turn out negative, and the client will clear any doubts she may have concerning the state of health. However, if she values an assurance at only $50, she can still pay for the incentive to get another free test. This scenario implies that the $200 is equivalent to socially wasteful spending. Alternatively, if the health insurance lets her manage the money, the possible inference is that when she spends the dollars, the care she will have access to will be equivalent to the worth of the cash (Peter et al., 2015). Hence, anyone with expertise in economics can attest that this argument is valid and appealing. Indeed, setting a medical account using the premium savings will play a pivotal role in accessing quality healthcare.
Therefore, it is evident that the proposed policy change is worthy and will provide more benefits to all Medicare recipients by encouraging them to pay lower premiums and save the extra amount in a medical account. The measure will contribute significantly to increasing access to quality healthcare.
Thank you for your cooperation.
Best Regards
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