Policy

MORE Q & A ON DAVE’S PLAN

Dave Davis Policy

Q.  How does this differ from Health Savings Accounts and very high deductible plans on the ACA exchanges?

A.  We think our plan would be much better at lowering costs.  The Catastrophic Policies would be cheaper because they could be bought Nationally with no payment defaults and stripped of any mandatory additions such as birth control or prostate tests.  You tailor you account to your individual needs.  Everything else in healthcare should be cheaper.  If a huge market with no credit risk or no third parties to add costs and paper work doesn’t lower costs than nothing will.  One caveat, however, is in the beginning with so many newly covered even 2 1/2 years might not give providers time to gear up.  That might result in some bottlenecks that might result in some temporarily higher prices or waiting times.  We don’t think the market will let that go on very long.  In any case  providers are dropping Medicaid patients now at an alarming rate and that would never get better.  Because surgeries are a big part of the Catastrophic Policies, one other thing we would like to see is a policy option that would cover accredited foreign providers to lower the premiums.  According to the Oct./Nov issue of AARP  magazine a heart bypass in the U.S. costs $88,000, In Costa Rica $31,500 and in India $14,400.  We saw a brand new hospital in India and when we asked about the surgeons we were told that every one of them had served on the staff of a major U.S. hospital.  Additionally this would put price pressure on our hospitals.  In any case each dollar in your PSA would buy more health care than if it was put in a Health Savings Account or an ACA  very high deductible plan does now.  We believe that the differences could be substantial.  As people’s accounts grow and innovation kicks in over time the problem as a percentage of GDP would shrink.  You can’t say that about any other plan we’ve seen. Continue reading →

DAVE’S PLAN Q & A

Dave Davis Dave's Healthcare Plan, Policy

Q.  Having already gone through the horrors of one botched roll out, how can you assure us that this won’t be another complicated mess?

A.  It’s an ill wind that doesn’t blow someone some good.  By building on some things already associated with the Affordable Care Act (ACA), subsidies, the individual mandate and the IRS, we think we can convert the Affordable Care Act (ACA)  to Dave’s Plan in 2 1/2 tax filing years without too much misery.  In the first year, the IRS would change their filling forms to include the individuals Personal Benefits Accounts (PBA) information and reporting requirements by financial institutions.  More importantly they would upgrade their payment software to incorporate the appropriate income and age levels for depositing the proper Medicaid and subsidy payments to the PBAs.  Governments both Federal and State would have to determine what they are paid out in the previous year on average for subsidies and Medicaid by income and age group and get the numbers to the IRS in time to incorporate them in the following year.  This could be a little tricky as medicaid varies between the states. However, in is this age of big data this shouldn’t be a problem. They should have this information anyway.  With the IRS organized, providers and financial institutions could start gearing up for the changes.  The institutions would have to incorporate payments for the qualified Catastrophic Policy whether they sold it or the account holder bought it elsewhere. Then their medical care only credit cards would have to be coordinated with providers probably through card companies (Visa, MasterCard etc.).  Businesses would have to decide whether to drop benefits and just be responsible for payroll deductions and transfer to the employee’s PBA or go to or maintain a contractual system where they where would remain responsible for Health and retirement.  If it’s the latter, the info would be included in their W2s.  Health Insurance policies wherever purchased for the next year would be extended to Oct. 15 of the following year (Approx 18mos.) Continue reading →

SSSHHH! A MIDDLE EAST POLICY ON THE QT

Dave Davis Policy

What are our real interests in the Middle East?  What would we find unacceptable?  Destruction of Israel?  Slaughter of the Kurds?  Annihilation of religious or ethnic minorities such as the Yesidis?  Closing of trade routes especially for oil?  Most people would probably agree on these.  Sure there are some isolationists that say none of this is our business.  That would be unrealistic.  Chase Yesidis up a mountain and public pressure demands we send in the planes and we do.  Nobody wants another Rwanda. Since the  beginning of the 19th century we have had warships with marines aboard protecting trade routes.  We’re not about to change now.  We feel a certain affinity towards the Israelis and the Kurds.  We have extended our protection to both for decades and that’s not going to change either.  What else?  Iran as Nuclear power is a problem we will deal with separately. Continue reading →

HOW DAVE’S PLAN WOULD WORK FOR EMPLOYERS AND THE SELF EMPLOYED

Dave Davis Dave's Healthcare Plan, Policy

Employers that have contractual obligations to pay for healthcare and retirement would have no change.  All others would be responsible for deducting the proper amount from paychecks (10% minimum with a Max equal to the current 401K cap plus $10,000 medical allowance and direct depositing it in the employee’s PBA.  They would retain the same ability and limits to make matching funds.  Again just deposit them to the PBAs. Employers will be encouraged facilitate a one time group move from their health plan to individual plans.  As management tends to be older, this is very much to their  benefit.

Employers will be encouraged negotiate their employees move en mass to individual policies. While this is in the best interest of everyone, employers, employees and insurers, there may be some circumstances where the help the agency administering the mandatory cash fund in each PBA may be sought to smooth the transition. The important principle is that everyone with employer insurance continued to have coverage.

That’s pretty much it.  Before you pop the champagne, just remember you’ll still have to compete for employees. Wages and ability to pay matching funds would come to the forefront.  Your employee’s healthcare and retirement will be  totally portable, so job hopping would be much easier.  Instead of trying to figure out a prospective employer’s health and retirement plans all the employee has to do is compare dollars.  This would definitely level the playing field between large and small  employers.  All this is as it should be.  The self-employed would come under the same 10% minimum and a Max of the current 401k cap plus 10,000 medical allowance and matching funds ability that apply to employers.

HOW DAVE’S PLAN WOULD WORK FOR THE GOVERNMENT

Dave Davis Dave's Healthcare Plan, Policy

The one thing we can say for certain is this plan will cost more than the Affordable Care Act.(ACA)  Wait didn’t we say that Government support would be based on Medicaid  and the subsidies current on the ACA .  Why should it cost more?  Simply because it covers more people.  Even under the supposedly universal ACA, millions remain uncovered.  Our plan covers everyone.  No ifs, and or buts about it.  However, this should be cheaper than covering everyone under the ACA if it could ever get there.   Helping offset the increased cost would be lower overhead and insurance costs.  Continue reading →