I have been talking to a few people about health care and health insurance issues recently. I heard one business owner tell of a new plan he is putting in place. It will not have co-pays. I will be a simple plan that kicks in with coverage after an employee spends $1,500 out of pocket for an individual or $3,000 for the family for the year. The company will also set up a health spending account to allow people to pay this amount with pretax dollars. The plan will cost the same as their former plan that had co-pays and prescription drug discounts. At first blush his makes sense. It seems simplified and sensible. But if you do the math, those people who do not use much health care in a normal year will not only be paying the same level of premium as last year, but will also have to come up with another $1,000 or $2,000 to pay out of pocket. For most working people who live paycheck to paycheck and who spend 101% of income anyway, this will be difficult. Maybe it is the best structure to keep unnecessary usage of health services at a minimum, but it may also cause people to stop spending on normal check-ups and preventative care, hoping to use the insurance only for a big event. It is hard to say how it would eventually take shape. If I had an executive coaching client who brought me in to give guidance on choosing a new health care plan, it could get complicated. No matter which way you go with it, there will be some pain of adjustment and some additional cost. I think if I were designing a health care plan, it would involve involve a weekly message for everyone and a daily nap. Maybe you can help me put it together? Maybe a public speaking campaign extolling the virtues of massages and naps is in the works. In any case, I can assure you that whatever new health care plans come about in the near future, we will all only be partially happy.
