By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    benefits of using protein powder to build muscles
    Protein Powder for Muscle Mass: Everything You Need to Know
    December 12, 2021
    changes brought on by blockchain in healthcare
    Technology In The Healthcare Industry
    March 28, 2022
    What Does Core Body Temperature Say About Health?
    August 17, 2022
    Latest News
    Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
    May 16, 2025
    Learn how to Renew your Medical Card in West Virginia
    May 16, 2025
    Choosing the Right Supplement Manufacturer for Your Brand
    May 1, 2025
    Engineering Temporary Hospitals for Extreme Weather
    April 24, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    FDA Approves Diabetes Pill
    May 2, 2011
    Patient Gets Drunk on Hand Sanitizer
    June 20, 2011
    Cultivating Health Improvement
    July 20, 2011
    Latest News
    Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
    May 18, 2025
    The Critical Role of Healthcare in Personal Injury Recovery: A Comprehensive Guide for Victims
    May 14, 2025
    The Backbone of Successful Trials: Clinical Data Management
    April 28, 2025
    Advancing Your Healthcare Career through Education and Specialization
    April 16, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: A Clearer Way to Think about Medicare Vouchers
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Health Reform > A Clearer Way to Think about Medicare Vouchers
Health Reform

A Clearer Way to Think about Medicare Vouchers

DavidEWilliams
Last updated: September 8, 2012 8:42 am
DavidEWilliams
Share
4 Min Read
SHARE

The idea of vouchers has long appealed to conservatives who want to preserve government funding for a popular program while increasing individual autonomy. The best example is school vouchers. Rather than assigning students to free state-run schools, government would provide a voucher to each family that could be used for the school of their choice –whether public or private. There are certain downsides to this approach –for example, it may undermine funding for public schools or lead to re-segregation.

The idea of vouchers has long appealed to conservatives who want to preserve government funding for a popular program while increasing individual autonomy. The best example is school vouchers. Rather than assigning students to free state-run schools, government would provide a voucher to each family that could be used for the school of their choice –whether public or private. There are certain downsides to this approach –for example, it may undermine funding for public schools or lead to re-segregation. But in principle it can work since most students cost roughly the same to educate and the cost is predictable from year to year.

Proposals to apply the voucher principle to Medicare financing strike me as somewhat disingenuous. Paul Ryan’s idea is to give Medicare recipients a voucher that they can use to purchase private insurance. Supposedly this would provide Medicare recipients greater autonomy and the opportunity to purchase the type of insurance they want. Insurance companies would supposedly be competing hard for the business of each enrollee.

I grant the possibility that a recipient might be able to find a plan that is a better fit for his or her individual circumstances. But the value of this choice pales in comparison with the reality that people who are sick or with pre-existing conditions are virtually uninsurable. No insurer will enroll them at anything approaching the Medicare voucher rate without being forced to do so by the government, using the same kind of rules that are central to ObamaCare (and the Massachusetts health care reform law for that matter). A seventy year old in excellent health may be able to find a good plan for the $10,000 or so they may receive as a voucher. But realistically someone with a heart condition is going to cost more like $50,000 and a current cancer patient could be $500,000.

More Read

Three Aims of CMS & Well-Managed Healthcare Organizations
Hospital Marketing: Medicare Payments Collide with Delivery System Reform
Awaiting Results of Virginia Appeal Court
Health Wonk Review: Mud Season Edition
What Mental Health Parity Has Wrought

So if we’re going to go down this voucher path, why not be pure about it and think about using the voucher for medical care directly rather than for insurance. Give each Medicare recipient the $10,000 or so that’s spent on average per recipient today and let them use that money to pay their own medical bills. If they are parsimonious and stay healthy let them keep the difference. Sick or not smart with health care spending? Their problem.

Doesn’t sound realistic, does it?

So let’s stop pretending that vouchers are some great tool to give autonomy to the individual. They only work if combined with heavy handed, socialistic regulation of the insurance business. It may surprise you, but the Ryan plan appears to include such provisions.

If that’s the case, maybe we should be talking about why Ryan relies on a key tenet of ObamaCare to make his plan work, and whether he and Mitt Romney would keep in place provisions of the Affordable Care Act that prohibit medical underwriting even while they eliminate the coverage mandates that make such provisions financially feasible.

 


TAGGED:health insurance
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Do You Grind Your Teeth at Night? Here’s How Night Guards and TMJ Treatments Can Help
Do You Grind Your Teeth at Night? Here’s How Night Guards and TMJ Treatments Can Help
Dental health
May 21, 2025
The Secret To A Confident Smile: Top Tips For Better Teeth
The Secret To A Confident Smile: Top Tips For Better Teeth
Dental health
May 21, 2025
Clinical Expertise
Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
Health care
May 18, 2025
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Health
May 15, 2025

You Might also Like

Image
eHealthHealth ReformMobile HealthSocial Media

Clinical Trials Could Get More Help From Social Media

July 20, 2013
The ACA has put patients at the center of healthcare services. A patient-centric healthcare approach in this digital era means a revised definition of quality in the physician-patient relationship. When it comes to healthcare services, patients shell out a hefty amount from their pocket and want nothing less than the best. The services in healthcare are no longer limited to just cost as consumers now evaluate quality and experience in the same equation. Research highlights from the 2015 Healthcare Consumer Trends by National Research Corporation states that reputation in healthcare matters more to consumers when choosing a brand than any other industry, e.g. hospitality, retail, airline, etc. The new generation of quality measurements in healthcare require a different mind-set and a different 'toolbox' to handle the hurdles. It’s the need of the hour for healthcare providers and others across the healthcare value chain to adopt the patient-centric approach for surviving in the vast competitive ocean of healthcare services. Patient-centric care is an approach that develops through effective communication, empathy and a positive physician-patient relationship. The primary purpose is to improve patient care outcomes and satisfaction and to reduce patient symptoms and unnecessary costs. It’s a win-win situation for both physicians and patients. While healthcare providers are able to support their patients in becoming more compliant with treatment and management of their conditions/diseases, patients feel more satisfied with the care that they are receiving. PwC’s Health Research Institute’s annual report 2016 states that health systems should keep an eye on the consumer experience as they expand and extend. More partnerships and more caregivers could mean confusion for patients and poor customer experiences. To differentiate their practice among competitors, patient satisfaction can be used as a competitive distinguishing factor. Although patient satisfaction cannot really provide tangible benefits, but an experience that exceeds patient expectations for what a practice/hospital can provide is very important as it creates loyal patients who return for future health needs and refer their family and friends. Happy and satisfied patients are a secret marketing weapon for healthcare providers, whether they are physicians, dentists, physiotherapists or hospitals. Your patients are the new-age digital health decision-makers. In this era of Internet and social media, they now have multichannel access to information related to health. Needless to mention, they have gained new power to make their decisions; whether it’s choosing a healthcare provider or referring a physician to family and friends. By converting your satisfied patients to be your brand advocates, you can capitalize and use their voice as an effective marketing strategy to reach out to many other potential patients. To strive and thrive, in the U.S. many healthcare organizations are applying patient-centric approaches to healthcare. It’s all about what matters to patients, so it makes a lot of sense for the healthcare industry to place patients' healthcare experience at the center of their policies and procedures. The best deliverables are a combination of great communication for a positive physician-patient relationship, disciplined measurement and analysis of patient feedback and commitment to technology innovation – the formula for improving patient engagement and care.
BusinessHealth ReformWellness

The Link Between Patient Satisfaction and Long-Lasting Relationships

April 28, 2016
EHR implementation race
eHealthHealth ReformMedical RecordsPolicy & Law

Small, Solo-Provider Practices Lag in EHR Adoption

May 24, 2013

Merging Modern and Alternative Methods for Complete Healing

February 10, 2013
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?