Basic Needs What are the most basic needs that we have as human beings? Food Shelter Health care?

When you go to the doctor, what is the first thing they ask for at the front desk?

Before you give them your health history, or tell them what is the matter with you, now, maybe even before they say “Hello,” they want to see your health insurance card.

What does health insurance do for you? An insurance company might pay for most of the cost of the doctor’s bill. You may pay a relatively small amount of the bill. This is called a “Co-pay”. This depends upon your “Deductable”.

Importance of Health Insurance In order to take care of one of the most basic needs that we have as human beings, it is almost essential that we have health insurance. Avoidance of catastrophic $ hardship Peace of mind

The cost of medical care is so high that many of us cannot even imagine paying those bills without health insurance. Slice your hand - need stitches$3,066 Broken arm$2,520 Step on rusty nail$1,030 Tonsils removed$4,875 Allergy shots(per year)$3,200

Amazing Numbers Yet, in the United States, the world’s only superpower, the most prosperous nation on earth, 32 million people are still without health insurance. - Kaiser Family Foundation Almost 4.5 million kids under the age of 18 did not have medical insurance. - FiveThirtyEight

Effects of Being Without Health Insurance Changes lives significantly Families have problems paying for medical care Medical care is often delayed because of the costs, even though the medical condition was somewhat serious.

Who Pays for Health Insurance? For working people: people’s employers and people themselves OR For the elderly or the poor, the US Government – Taxpayers – YOU and I!

Employer-Provided Health Insurance

How costs are divided For 2012, the previous report, annual premiums for employer-sponsored family health coverage reached $15,745, up 4 percent from 2010, with workers on average paying $4,316 toward the cost of their coverage.. National Conference of State Legislatures Employers pay $11,429 per year for each employee. Employers pay almost ¾ of cost.

Skyrocketing Costs Health insurance expenses are the fastest growing cost for employers. Unless there is a big change, health insurance costs could overtake profits in the future

Tough Choices With Limited Resources Health care costs must be controlled. Not clear how to do this: Price controls? Free market competition? Government support?

President Bush’s Proposal For those who buy health insurance on their own and not through their employer– they would get a tax break. -The idea is to take some of the burden off of employers. The federal government would provide money to the states to help poor people get health insurance.

The Democrats lost the House of Representatives in 1994 because they proposed changes in health insurance. President Obama has championed the Affordable Care Act and changed our nation’s health care policy

Federal Health Insurance Medicare Medicaid

Under Pres. Obama How has Health Care Coverage Changed? –New coverage for more people –More Payments made be the Federal Government –As of March 2015, the net cost of ObamaCare is projected to be $1.207 trillion over the 2016 – 2025 period.$1.207 trillion

Under the ACA you MUST have insurance or pay a fine!

Medicare For senior citizens Basic plan pays most of hospital bills.

How Are Costs Paid?

Problems With Medicare Medicare fund is running out of money. Lots more old people and fewer working people. Increasing health care costs. Fraud against government. Low incentive to limit costs- since government pays the bills. Sound familiar?

Another Set of Tough Choices With Limited Resources What are the options?

Keep Medicare As Is -Keep promise to elderly. -Elderly already paying money on their own. -Make minor changes to decrease costs and prevent fraud.

Protect the Fund Reduce benefits and limit who is eligible to receive them. Make wealthy people pay more of their own costs. Protect against fraud.

Drastic Change Mandatory medical savings account for each individual. Today, individuals use health care too much since they don’t have to pay. Once money in that account runs out, people must pay out of own pockets for routine medical bills.

Medicaid To help pay medical expenses for low income people. Funded by federal, state and local taxes. Aids more than 35 million people but costs over $150 billion each year

How it works Federal government sets the rules State governments run the program They share the costs

Drain on State Resources In many states, takes up 25% of entire state budget.

Key Choices How to use limited resources Costs are skyrocketing Serves basic human needs of people who are often not in a position to help themselves. But, will only continue to be able to serve those needs if costs are controlled.