2 thoughts on “Understanding healthcare costs: The employer-sponsored insurance system

  1. A good video. In the last 40 years I have been an administrator, employer and employee. During this time I had years where I had no insurance and worked with maintaining my health through simple natural approaches. You will only wring so much out of refining the delivery system. Your are correct it is the cost of services that needs to be addressed. Many years ago an non-practicing acupuncturist helped me understand you need to change the model to pay only when the person is healthy not when the person is sick. However, we are too far down the road to go there. Although a plan where your premiums were reduced as you did not use the policy might be a starting point. The next best alternative would be to involve the client through deductibles and education. If you can educate people early in their life about healthy lifestyles you could reduce the need for intervention later. It is cheaper to prevent illness than it is to treat it. I hope the minds that study this find the better way because absent that path I do not see things changing on their own.

  2. @Bill Gustafson
    As a rule everyone dies of something, and most often medical providers are involved. I agree that it is cheaper to treat healthy people and with the implication that unhealthy living costs all of us. However pooling costs, combined with prevention, combined with reducing overhead and administrative costs by providers and insurers is the proven method for keeping premiums low. A well-designed single payer system can accomplish this, as has been demonstrated in other countries.

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