Transition to Medicare

health insurance

There must be one heck of a lot of money to be made in signing people up for Medicare Advantage and/or Medigap policies. Otherwise, I would not have been subjected to literally hundreds of phone calls over recent months leading up to my 65th birthday. I have been extremely fortunate, having held family health insurance since retiring from my corporate job nearly 5 years ago. So I had been insulated from any external sales pressure trying to entice me to buy health insurance. That ended this year, when hordes descended on my phone lines (both land-line and cell), attempting to get me to establish a relationship with someone who cold-called me asking if they could be my friend to assist me in choosing Medicare supplemental insurance coverage.

I was fortunate in that my employer, anxious to shed me from their legacy cost structure, offered both a stipend for ongoing medical insurance, and the assistance of a contractor that steered me through the enrollment process. The stipend will not cover the total amount of Medigap and Medicare part D insurance, but it will pay a good portion of it. I am now through the process, although I now am vulnerable to the annual enrollment period for Medicare recipients where I can change my supplemental carrier, if I so desire. Having had all of 2 months of coverage, so far I do not have adequate experience to want to change carriers.

The summer months, though, were filled with calls asking if I needed assistance. It became obvious that the coverage rates were high enough to justify scores of call centers placing calls to me, solely because I was identifiable in their databases as a 64 year old and therefore needing their assistance. The best one was one that my wife fielded when I was not available, where they asked her if she was the one in the family who made health care decisions. We are phone luddites, with both a land line and cell phones, and the land line does not have caller ID, so any call was at least answered. In most cases when I could learn their purpose in calling me, I said firmly but politely, “I’m sorry, I’m not interested,” then hung up before someone could begin their sales pitch. I feel sorry for those whose job is in a call center, since they encounter the worst of humanity. I definitely do not wish to inflict them with additional angst from an uninterested caller.

What is interesting in this day is that we are hearing a call for adoption of a Medicare for All program as part of several candidate’s platforms. These platforms also call for the abolishment of private health insurance as part of an implementation plan to convert to a single-payer system. Well, the current Medicare system certainly has room for private insurance plans to fill in the gaps around the basic core. And it is clear that a government mandate to forcibly give up current insurance coverage, however inadequate it has become due to higher deductibles and higher copayments, will create significant resistance among many American voters. What would seem to be a better way would be to create an alternative option for health care coverage. For those who currently hold health insurance, a mandate could be placed upon employers that they offer the public option as one of the available options for employees to choose, and that employers have to provide a subsidy equivalent to what they are providing with their current insurance package. Then the public option would be enabled to begin to unravel the excessive overhead found in current for-profit insurance coverage. Over time, this will result in the public option costing employees less, while providing better coverage due to reduced deductibles and co-payments.

For those who do not currently have employer-based health insurance, this public option would be placed upon the health care exchanges, and people would be able to select a plan with greatly-reduced premiums. If the marketplace is allowed to function properly, the competition from a public option will result in insurance providers trying to match the public pricing. The cost for health care will bend lower over time, and if the public option ends up becoming the preferred option, then we may find ourselves in a situation where a Medicare for All system is the de facto choice, without it ever being mandated as a de jure choice.

The march towards progressivism in the Democratic party at present has flaws built into its logic. It presumes that there is such a pent-up demand for their prescriptive solutions to the ailments of our society that this nation will choose a mandated big-government program. My fear is that if such a proposal is adopted officially by the Democratic nominee, the disgust that permeates US society towards Federal Government mandates will result in the re-election of the current President. That would be the greatest tragedy of all.

 

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