What is Consumer-Driven Healthcare?

Home
>
Insurance
>
What is Consumer-Driven Healthcare?

What is Consumer-Driven Healthcare?

Consumer-driven healthcare is a label that we've put on a movement in America to change the way decisions are made in our healthcare system. Instead of insurance companies making all the decisions about how people will receive their healthcare, consumers are taking back the power over their own lives.

Likewise, the days of a patient totally putting their lives into their doctor's hands are over. People don't trust doctors to always do the best thing. How could they? The doctor does not know the situation as well as the patient. It must be the patient's choice, and they must be making an informed choice, not one based on a five minute sales pitch from a doctor.

If consumer-driven healthcare sounds good to you, that's because it is. It is a very good thing. Dr. Bernie Siegel, a holistic MD and author, noticed many years ago that the patients who took the most interest in their own well being while in the hospital had the best recovery rates from diseases and injuries. These patients are called "troublemakers" by hospital staff. But the truth is, they live. The "compliant" patients die in much greater numbers. Take your pick.

The consumer-driven healthcare revolution is represented in the insurance industry by the emergence of the health savings account (HSA). This is a savings account (like a bank account) that allows you to save tax-deferred money for healthcare expenses whenever you might need it. You can take the money out without paying tax, as long as you're using it for healthcare expenses.

The Health Savings Account allows people to use a much higher deductible on their health insurance, reducing the cost of insurance payments by 40%, 60% or even 80%.

My wife and I would pay about $1000/month for low-deductible health insurance. But with a high-deductible plan and an HSA, we pay $175. That's an $825, or 82.5% savings every month, $9,900 a year. That buys a lot of yoga classes, or acupuncture treatments, or massage therapy. Or it can go towards a very nice retirement savings. Or a car after two years. Whatever we like.

The downside of consumer-driven healthcare is that whenever you take over control of a situation, you also have more responsibility. You have control of your healthcare dollar, but now you have the responsibility to spend it in the right places. And you need the discipline to do what you know is right. That's often very hard.

But overall, consumer-driven healthcare is a big step forward. In the next two or three years, many Americans will take charge of their own healthcare.

Join the consumer-driven healthcare revolution! You'll save money, be healthier and have more choice over your own life.

Daryl Kulak is the author of Health Insurance Off the Grid, a book that provides a simple, effective plan to reduce insurance costs for the self-employed, unemployed and underinsured. The book is available at the Website http://www.healthoffthegrid.com

In The News:

Home-value insurance: We're not convinced it's a good idea
Washington Post
Several weeks ago, we were asked whether it made sense to buy insurance on a property's value that would pay off if the value declined. We suggested that buying property value insurance when property prices are the lowest they have been relative to ...

and more »

NOLA.com
Senate acts to extend flood insurance program
Boston.com
WASHINGTON—The Senate on Thursday voted to extend the life of the National Flood Insurance Program for 60 days, giving lawmakers time to work on a long-term extension that would seek to restore fiscal solvency to the debt-ridden plan.
Senate Approves 60-Day Flood Program Extension; Will House Agree?Insurance Journal
US House expected to follow Senate in approving flood insurance extensionNOLA.com
Senate votes to extend federal flood insurance for 60 days, good news for ...Press of Atlantic City
The Hill (blog)
all 227 news articles »

TheChronicleHerald.ca
Canada tightens employment insurance rules
Reuters
Noting that some employers were hiring foreign workers even while Canadians were making claims for employment insurance in the same occupation and province, she added: "We want to redress the balance right now so that Canadians get first crack at the ...
Canada Tightens Rules For Employment Insurance ClaimantsBloomberg
Redford government takes wait and see stance on Employment Insurance crackdownCalgary Herald
What exactly are the changes to the Employment Insurance system?National Post
Toronto Sun -TheChronicleHerald.ca
all 283 news articles »

EMC Insurance Group Inc. Declares 122nd Consecutive Quarterly Cash Dividend
TheStreet.com (press release)
By Business Wire 05/25/12 - 09:30 AM EDT On May 24, 2012, EMC Insurance Group Inc. (NASDAQ:EMCI) (the “Company”) declared a quarterly dividend of $0.20 per share of common stock payable June 11, 2012 to shareholders of record as of June 4, 2012.

and more »

Farmers Insurance and the University of Farmers Receive Two Awards From ...
Sacramento Bee
By Farmers Insurance LOS ANGELES, May 24, 2012 -- /PRNewswire/ -- Farmers Insurance and the University of Farmers received the awards at the 13th Annual gala CUX Awards for Excellence and Innovation in Corporate Learning. The event was held as part of ...

and more »

FIFA authorises first insurance policy for international injuries
Reuters
By Mike Collett | BUDAPEST May 25 (Reuters) - FIFA's new insurance policy will cover players injured on international duty and provide clubs around the world with a maximum annual payout of $9.7 million per player, delegates at the FIFA Congress were ...
FIFA Establishes $75 Million Insurance Fund for Soccer PlayersBloomberg

all 9 news articles »

Ex-insurance salesman earns associate degree from Purdue at age 87, plans to ...
The Republic
WEST LAFAYETTE, Ind. — Jerry Cole II takes great pride in his career as a businessman, during which he's sold millions of dollars in insurance policies. But there was one more thing he always wanted. Feeling as nervous as a 20-something, ...

and more »

Fitch: Insurance Industry Has Capacity to Meet Hurricane Coverage in 2012
Insurance News Net (press release)
Sufficient capacity remains available in the (re)insurance markets to meet the demand for coverage prior to the approaching US hurricane season, according to Fitch Ratings' annual hurricane season desk reference. Early forecasts for the 2012 US ...

and more »

Online Insurance Marketplace Teaches Individuals How to Get the Best Price for ...
Albany Times Union
Online Insurance Marketplace, a portal for individuals looking for companies which provide life insurance for young adults and senior life insurance, has announced that they wrote a blog, titled, "Know More About Term Life Insurance Quotes.

and more »

TEXT-Fitch affirms Westpac Lenders Mortgage Insurance at 'AA-'/Stable
Reuters
(The following was released by the rating agency) May 24 (Fitch) Fitch Ratings has affirmed Westpac Lenders Mortgage Insurance Limited's (WLMI) Insurer Financial Strength Ratings (IFS) at 'AA-'. The Outlook is Stable. The rating reflects WLMI's robust ...

and more »

Google News