HEALTH CARE IMPROVEMENTS
January 11, 2002 - WAR REPORT NUMBER 2-2002
I have a proposal to bring the doctor and patient back to their traditional relationship: reduce the complaints from patients and providers (doctors, hospitals and clinics), eliminate interference by government bureaucracy, and slow the spiraling cost by imposing market-driven forces. After a cursory check of the market, I could find only one insurance carrier with this product.
Interested? Read on.

This proposal includes a large medical insurance policy for catastrophic illness or injury only, and Medical Savings Accounts (MSAs) for routine and minor medical expenses.

I propose a policy covering up to $10 million in catastrophic coverage because such a policy is very inexpensive. Why? Because so few people would ever use it. In the event some carriers feel the liability is too great, they can re-insure every policy above $1 or so million.

Recently the Internal Revenue Service (IRS) released its ruling on the 2002 adjustments to the limits on deductibles and out-of-pocket costs for health plans related to MSAs. According to IRS Revenue Procedure 2001-59, deductibles and out-of-pocket costs for MSA-qualified health plans in 2002 will increase to the following amounts for I = individual and F = family coverage: Minimum Deductible for I $1,650, for F $3,300; Maximum Deductible for I $2,500, for F $4,950; Out-of-Pocket Limit for I $3,300, for F $6,050. These increases are determined by the annual cost-of-living adjustments based on the consumer price index.

The Health Insurance Portability and Accountability Act of 1996 (HIPAA), which authorized "demonstration projects" for MSAs, called for inflation-related adjustments to the above deductibles and out-of-pocket limitations for years beginning in 1999.

Consequently, patients have the option of paying for these costs our of their own pockets and rolling over the savings for future medical use or using their tax- free MSA dollars to pay for routine and minor medical problems. This brings us back to the traditional doctor/patient relationship.

Stay tuned!