The High Cost of No Price — The American, A Magazine of Ideas

The High Cost of No Price — The American, A Magazine of Ideas.

I'm venturing slightly outside the financial markets but this is something that impacts financial planning decisions. Or at least it should.

We, as consumers, have the right to shop for property insurance, vehicle and life insurance to find the best combination of coverage terms and price for each of us. Yet, we can't shop for health insurance. How many really know the full cost of their health insurance policy?

I think this is one of the keys to resolving the health care issue - enable consumers to shop for their own health insurance. My thought is enable companies to cross state lines, allow consumers to choose any company, coverage, etc they prefer and have companies providing health benefit dollars, then pay the insurance company directly. In this scenario, the company dollars are fixed, the consumer knows what they get and what it cost and recognizes clearly the full cost/benefit ratio. Competition managed by the consumer, to me, is vastly superior to the current model or to anything currently being proposed in Washington. While I'm sure it is not without fault, it can work.