Healthcare Reform
Canadian and European Healthcare Systems
Increasing Health Care Costs

What Should Be Done


Why Does The Cost Of Health Care And Health Insurance Keep Increasing?

Every advanced country in the World suffers from rising health care costs.

Socialized Medicine does not change that fact!

In America life expectancy in 1965 was 70 years, by 2005 it had increased to 77 years. People are living longer. As I write this newsletter my 81 year old mother-in-law in Chicago is in hospital recovering from a terrible car crash. Both legs broken, one elbow smashed, three neck vertebrae broken, large wounds that will need plastic surgery, also she is on a breathing ventilator. She has already had four operations and there are more to come. It is still touch and go, but just a few years ago she would have died for sure. (Thank God she has Medicare Supplement Plan F) People are recovering from illnesses and accidents that would have killed them 30 years ago! Why? Because medical science is progressing in leaps and bounds, but it comes at a very high price..

1958 First internal heart pacemaker.
1968 First Heart transplant in USA.

First Total Hip replacement in USA.
1977 First practical human use of an MRI.
1982 First Artificial Heart Jarvik-7 implanted into patient Barney Clark.
1998 First combined Liver and Bone Marrow Transplant.
2005 First Living Donor Islet Transplant (Diabetes).

All these incredible medical advances cost enormous amounts of money.

Have you ever thought about the difference in price between an X-Ray and an MRI?
Hip replacement average cost $25,000. Knee replacement average cost $33,000. Quadruple Bypass probably $60,000.
Heart transplant average cost $148,000. Liver transplant average cost $235,000!
Most of these treatments did not even exist when my son Jason was born!

Then there is the high cost of being a doctor. I know doctors who have moved into other professions because they just can't afford to be in practice. One doctor I know bought and manages a Thai restaurant!

The average debt for a medical school graduate is $140,000. The basic cost of setting up a practice is about $100,000. All this has to be repaid. Then they have a burden peculiar to the USA. Medical Malpractice costs that are completely out of control. All these costs are passed on to the insurance companies, and translate into premium increases!

Strange how the Government refuses to control malpractice costs. Other countries do! You may want to visit:

The privacy laws. 10 years ago it was easy to get medical records by telephone, now it takes at least 3 weeks to obtain the records when someone applies for a policy. Some health providers even have their own disclaimer forms to protect themselves! Insurance companies have to hire people to physically get these records, it all adds to the bill. Now the Government says it can all be speeded up with electronic transfers etc. What about the privacy laws that caused the problem in the first place? Forget privacy now. The bureaucrats want to read the medical records to control treatment.

Federal and State Laws prevent people from buying insurance from different States. This prevents people from finding the best policy at the best price by shopping around. I also hold a Texas insurance license and Texans beg me to sell them California policies. By law I can only sell Texan policies to Texans even if the California Plans are better and cheaper. It's all about politicians having control. Isn't it fun watching our tax dollars at work.

Millions of people in America can afford to buy health insurance but choose not to. Then they show up at the emergency room and receive free treatment. Those costs are spread out amongst the people who do have insurance, pushing up premiums for everyone. I know a self employed man who can afford insurance but doesn't buy it. He was rushed to the hospital 6 months ago and had a heart bypass operation. He paid nothing! The same applies to the approximately 7 million illegal aliens, when they get ill they go straight to the emergency room. Directly or indirectly the people who play by the rules and buy health insurance are paying for the ones who don't.

These are the reasons that health care and health insurance keep increasing in price.

What about all those rich Insurance Companies making huge profits?

Sorry. I checked with Anthem Blue Cross. For every dollar of premium received only 3 cents goes to Profits, 10 cents goes to consumer services, provider support, Government payments, compliance, claims processing and administrative costs. The major cost is complying with Federal and State laws! 87 cents goes to claims. Can Big Government bureaucrats be more efficient than insurance companies?

In that case it must be the huge commissions those insurance agents get paid that forces up the cost of health care! I wish it was! In the 27 years I have been in this business not only have commissions been steadily reduced by law, they also stop after a few years. I can't see how a young person could make it in this business nowadays.

By the way. How many of you know that everybody in California is Insurable?


What Steps Should Be Taken?


2709 Ashwood, Costa Mesa, CA 92626 - California Licensed Insurance Agent #0621932