Why should I pay twice for healthcare?
Recently I posted to Nextdoor about my availability at my new office. The reply’s I received were interesting. Price was the first question, as was my medical specialty and areas of practice focus. One poster appeared to be quite incensed and aghast they should “have to pay twice” to see a doctor. I presumed it was once to their insurance company and the second payment to the doctor. I heard their frustration, but was surprised they would direct it at the doctor instead of the insurance company.
The typical frustration with the medical system revolves around having to wait to see your doctor then having little time in the room once you get there, or worse, little attention to your problem and being dismissed without much to show for it. Most people pay quite a lot for their health insurance - $9,000 and $24,000 for single vs. family plans - $750 or $2,000 per month! And what does that “premium” get you - denied coverage, copays and deductibles of thousands before your coverage kicks in.
We all have health insurance for “what if” - what if I have a major accident, cancer, surgery or other major illness? Most of use go to the doctor for a check up, and some of us need to go to the doctors with some frequency. Most people will go to the doctor irregularly, or once or three times a year, although this varies quite a bit by age. The statistics are interesting, if you care to have a look. Roughly 1 in 5 vistis are to their PCP for an Annual wellness visit, and another 1 in 4 visits are for a “new problem”, 2 in 5 are for a chronic problem, and only between 1 and 5 % are for surgical reasons. The reason I bring these statistics to light are because 95% of visits to the doctor are addressed in an office - not a hospital or surgical center, yet the biggest cost of medical care is surgical, cancer or hospital care. In otherwords, we carry insurance for a safety net, but most of us never use the safety net. Meanwhile, the insurance companies are making profit hand over fist by denying coverage.
A more efficient alternative is to carry a “Critical Illness Insurance” that will cover you and your family in the event of a major health event, but keep your premiums low. Average cost is $25-$100 per month, but can vary depending upon age. Use a healthcare savings account to pay for your membership to your PCP directly. Saves you thousands and affords you a better standard of living when it comes to your medical care.
To the original point - paying twice. The health insurance premium you pay to the insurance company goes mostly to other peoples medical expenses and administrative fees. The actual amount the doctor sees is a fraction of your annual premium total. So, when you think about what you’re getting for what you’re paying, you’re really not getting much from your insurance after all.
