Sunday, May 27, 2012

The Prepaid verses Postpaid Healthcare

There have been a number of stories in the media lately detailing how far hospitals will go to collect on unpaid medical bills.
Most of our insurance premiums is not insurance against above average cost but prepaid healthcare. So advocates of prepaid healthcare must explain why it s preferable to prepay than to pay after receiving care.
Problems with paying after care:
1: It can be difficult for the provider to collect.
2: Lack of ability to make decisions in certain emergency situations.
3. in some cases it causes people to wait longer than optimal to get treatment.
Problems with prepaying:
1. Encourages overuse.
2. Encourages quixotic attempts to extend the lives if the terminal.
3. Discourages self treatment.
4. Aligns providers and patient against payer.
5. Allows providers to more easily collect for care that failed to benefit the patient.
A benefit of paying in the rears is that should motivate the providers to get the patient back to a productive state.
Note the state could pay Providers after care in cases of bankruptcy putting certain limits on how the bankrupt can spend on other things .

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