Governor:The costs are high because the market is so small for this type of insurance. Less than 1% of insurance are people over the age of 65.
The costs for insurance are high because the costs for health care are high. There is already a strong market for folks aged 64 years old who retired early. Their costs for insurance are fairly high. The costs for folks aged 72 years would be astronomical and only affordable by a small segment of the population.
Governor: If you suddenly increase the pool of people seeking insurance, along with eliminating all the state regulations making it easier to go across state lines to get insurance, the market will bring the price down.
I believe that there are already a large number of insurance carriers in every state. Many carriers already cross state lines under the existing state regulations. I do not understand why there would be a significant savings by relaxing these rules further.
Governor: No, this is not an ideological change. Why would it be? The cost savings from removing the employer and making the individuals premiums tax deductible (instead of the employer) would first, reduce the taxes to the individual. Second, it would allow the insurance to be transportable when switching jobs. This is a huge cost to insurance companies- the constant adding and subtracting of employee rolls.
Many individuals can already deduct their health insurance costs through the use of HSA plans and/or by forming a small business entities. There do not appear to be any great savings by going this route. The premiums are still fairly high and the deductibles/copays may be much higher.
I agree that allowing individuals to keep their insurances when switching jobs is a good thing, but I do not understand why there would be a significant savings. There actual health care costs should remain unchanged. It would just eliminate a small administrative fee of removing/setting up a new participant in two computer systems. Employers do this all the time for there workers.
Furthermore, large employers because of there size have tremendous leverage when negotiating health care premiums with insurance carriers. By removing employers from this process, individuals would probably see their insurance premiums rise. Group plans through employers is probably one of the best aspects of the current system.
Governor: I am saying that shifting form medicare to individual choice would allow the person/family to choose the coverage that best suits them instead of the standard generic coverage of medicare. Some people make choose a lower premium and higher deductibles and some people may choose higher premiums with low deductibles. I'm saying, make it customizable to each persons needs and that will reduce costs.
So I think that you agree that the actual healthcare costs would remain unchanged, it just a matter of choosing how to pay for services, either up-front or pay-as-you-go or some combination.
Governor: How many people at age 65 are not able to work? If they cant work, then they need to go on disability.
You can call it whatever you wish. As you increase the age to 72, it will be an ever increasing percent of the folks in that age bracket.
Regards.
