Remove the Federal Government from health care, which includes dissolving medicare and Medicaid. The only role the Federal Government plays in health care is for it to mandate the states set up health care according to this simple formula.
Total amount of health care spent in a state last year+10 yr Avg.% annual increase = A
Number of people in that state = B
Annual insurance cost per person = C
A/B = C
Total amount spent annually on ‘unhealthy living expenses’* in that state = D
Percentage state will collect in sales tax on unhealthy living expenses = E
A/D=E
*unhealthy living expenses’ = tobacco, alcohol, marijuana (if legal), fast food, sodas, chips, cookies, candy, etc. (each state could decide what is included in this)
Example using hypothetical numbers: Wyoming 2016
A= $6B
B= 586,107
C= A/B or $6B/586,107 = $10,237
D= $10B
E= A/D or $6B/$10B = 60%
Each person is assigned ‘C’ to pay to an insurance company. This money has been collected by the state and is paid out from the state to the insurance company of the person’s choosing, which enables competition. If a person does not choose an insurance company, they are assigned one randomly. The number of illegal aliens could be estimated by each state and included in ‘B’ and then randomly assigned an insurance company. For example, if Wyoming estimated 1,000 illegal aliens living there, they would be added to the formula, pooled together and assigned to an insurance company as wildcards, which would be named once the illegal alien came into a hospital for care.
This is “free” healthcare. No money is paid by the insured for their policy. There are no deductibles. No one can be denied for age or preconditions.
This plan would save the US Federal Government $3T per year, which could be used to pay down the national debt. States already collect sales tax so not much burden would be added. Each state would have right to choose which insurance companies could participate in their program.
Major Benefits
Insured pays zero out of pocket for insurance and zero for deductibles
100% of populace is covered including pre-existing conditions and illegal aliens
Federal Government out of health care business
US Government saves $3T+ per year
US businesses no longer need to pay for health care insurance savings trillions
Encourages healthy living
Interesting Facts**
2016 - $3.35 trillion spent on health care in the US or $10,345 per person.
5% of population account for nearly 50% of $3.35T
50% of population account for only 3% of $3.35T
10% of $3.35T is spent on prescription drugs.
**http://www.pbs.org/newshour/rundown/new-peak-us-health-care-spending-10345-per-person/
