A Possible Solution to the Health-Care Situation in the US

Many millions of Americans rarely use medical facilities or doctors. They should be rewarded for their considerate attitude regarding that limited resource. A method might be able to do just that, and far more.
Imagine a PRIVATE, MEMBERS ONLY group of exactly 10,000 American families. The participants would have to QUALIFY in two distinct ways for possible membership in a specific group. Their entire family expenditures for medical situations, including insurance, for the previous five years must be examined and confirmed as accurate.
The Premium rate that each Member would pay would then be based on the total of the entire group per year.
The government would endow a Fund for this group with an initial one million, and the Premiums of the Members would therefore maintain the balance in that Fund at the desired amount.
The government would also provide a $400 income tax reduction for every family that was a Member of any such group.
For the minimal health care families discussed above, their ANNUAL Premiums might be less than that $400, so by minimal usage of the Health Care system, they would actually MAKE MONEY in the process, along with having the coverage they desire for their families.

Each American could select among a wide variety of such very specific groups to try to apply to. There would be two primary issues which would determine acceptance to a specific group. The first is the AVERAGE TOTAL HEALTH-CARE COSTS for that family, including all medical insurance, over the previous five calendar years. The second is the size of the Deductible.

Consider different situations:

A family that only has interest in Insurance for Catastrophic situations, where they have shown a five-year pattern of NOT running to the Hospital or Doctor every other day. A GROUP that specified a maximum of $400 annual medical costs in each of the previous five years, and which had a $10,000 Deductible, could provide all the medical Insurance that such families would ever want or need.
Since the Members of such a GROUP would have a total medical expenditures of, say $4 million in each of the previous five years, for the total of the ten thousand participating families, their ANNUAL Premium would therefore be set at $4,000,000 / 10,000 or $400.
They would therefore pay that $400 in to the Fund, collectively adding $4,000,000 to their Fund each year. Given that uses of medical services would occur, this situation would enable the initial $1,000,000 endowment by the government to be maintained at a safe level.
If the usage of medical services rises in a following year, up to say a total of $5 million, the Members of that GROUP would then need to send in an ANNUAL Premium of $500 instead of $400, in order to still maintain the safe level of the Fund. However, if their usage of medical services drops to $3 million total, they would similarly then only need to send in an ANNUAL Premium of $300.
Even though these people would be spending the $400 for their annual Premium, they would receive $400 back from the government as a reduction in Income Taxes, meaning that they would actually be receiving the medical Insurance that they desired at NO COST AT ALL to them!

This presentation was first placed on the Internet in January 2009.

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C Johnson, Physicist, Physics Degree from Univ of Chicago