Trumpcare – Nuts and Bolts of It

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Trumpcare, as it may soon be called, will begin with creating a new, super Health Savings Account (HSA), that will encompass all the health care needs of the patient.

The HSA will consist of three parts, a local doctor (Direct Primary Care Physician), a large deductible catastrophic health insurance plan and a savings account. The patient picks a local doctor whose practice operates by charging a set monthly fee that includes regular visits, checkups, shots and basic medical tests- with no deductible or co-payment. A typical fee would be approximately $100 per month for an individual with slight additional fees to cover a spouse and children.

Direct Primary Care doctors are the fastest growing practices in health care. Several years ago, there were only 400 such practices but today they number over well over 4,000. The reason they are flourishing is because these offices reduce the cost of operating, allow the doctors to spend their time with patients while increasing their earnings. Obamacare and insurance companies impose a terrible burden of paperwork on doctors, Direct Primary care all but eliminates the paperwork!

When a patient purchases an HSA, the monthly fee is automatically sent to the doctor eliminating the need to send bills. Likewise, the monthly premium for the high deductible insurance policy is automatically paid to the insurance carrier.

One of the problems with Obamacare is that even when there is coverage, the patient faces a huge deductible, often $6,000 or more before insurance coverage kicks in.

Here is where the savings part of the HSA comes into play. The purpose of the savings account is to accumulate money to cover the cost of the deductible that comes with the insurance policy. For example, if $200 per month is deposited in the savings part of the HSA, $2,400 per year is saved. In less than three years enough money is saved to pay for a $6,000 deductible on a typical insurance policy. Should there not be enough savings at a time when a major-medical procedure is required, an automatic loan provision is triggered to cover the shortage. The loan would be paid off by applying part of future savings account deposits to the loan balance.

The monthly cost for a comprehensive HSA for a middle-aged couple in Florida would be approximately $650, broken down like this; $125 for a Direct Primary Care physician, $345 for the high deductible health insurance policy and $180 for the savings account.

Individuals, couples and families could immediately begin enrolling in HSA’s as soon as enabling legislation is passed that allows a tax deduction for these new plans. Of course, insurance companies would have to file new plans in the various states which would greatly streamline their normal approval processes.

Group HSA plans would be available where employers could contribute a portion of the monthly cost. These plans would be much more affordable to both the worker and the employer than present plans. In addition, workers with low incomes would be eligible to have government subsidies to help pay for their portion of the HSA’s.

Trumpcare would be phased in so eventually most Americans would have an HSA that covers them for routine visits to their local doctor with no copayments for visits, and complete coverage for surgeries without having to pay any out of pocket deductible.

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ht/  I signed up for a one-year membership with AMAC. It’s only 16 bucks! And it’s a poke in the eye to AARP. Merry Mouse

17 Comments on Trumpcare – Nuts and Bolts of It

  1. @csteventucker, I’m sure you know more about this than most of us ever will, is this your preferred direction? As a layman, and an obamacare victim, I’m interested in how you see things playing out.

  2. Not to change the subject, but is anyone else watching the Jeff Sessions confirmation hearing? He is Kicking Ass! And I am regaining some respect for Ted Cruz!

  3. @ csteventucker,

    Is everyone mandated to participate in the new program, or is it optional on the part of the individual?

    Because if it’s mandated, no matter how inexpensive, it still goes against my fundamental belief that as a free individual, and as an American Citizen, NOBODY should be forced to participate into something they do no not wish to.

    I don’t believe in governmental beneficence, because ultimately, when the wrong people regain control (i.e. the fascist progressive democrats), things will go south and we’ll all be trapped within another hell.

    Call me a cynic.

  4. Do you lose the money in an HSA every year? If not, how long can you build it up? If you save up $2400 a year for 10 years, thats $24K. Is it tax exempt? If you never need it for a major event, do you get to apply it elsewhere? Can you use it for something non medical related?

  5. There will be NO mandated health insurance purchase requirement under Dr. Price’s replacement bill @Tsunami Conservative don’t need to mandate the purchase of health insurance. We INCENTIVIZE people to do so.

  6. @ Mr. Tucker,

    Thanks for your response. I hope it proceeds as planned, if that’s the case.

    The promotion of individual freedom is all I’m interested in.

  7. jtucker,

    I think what he meant by “incentivize” was that Conservatives don’t “coerce” people into getting insurance by threatening a fine or a tax.

    ….which I hope is the case.

  8. I still think there should be many ways to access health care. We need to have at least six options for people. Maybe more. Not one way for everyone. This one just sounds good to me. Why can’t we just have a big nationwide brainstorming session? Put lots of ideas out and let people have a year or so to test drive their plan.

  9. This plan looks excellent to me. And it even includes a provision I’ve been thinking we need… the ability to fund your HSA from your retirement account… The direct pay to your physician is an excellent deal also. Today, I pay cash to my GP. As a cash patient, my visit is $100. When I pay as an Obungocare patient, my COPAY on my visit is $140. And then my Doc has to go fight with my insurer for 9 months to get any additional. I did a study on a doctor’s office billing system once…. you would not believe what they must go through to get paid. It’s a wonder any of them are in business. Get the insurers out of routine care. It’s a loser. And this is what Price’s plan does. Excellent.

  10. I want to see it on paper. Speculation is CRAP until
    the changes are put up for the vote.

    Obammmycare was gonna save the WORLD dontcha know?

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