Reply #32: Look at working examples of for profit private combined with public [View All]

[ipaint]

Switzerland and Netherlands

They use public insurance to keep profit and overhead across the board at approx. 5%.

The swiss, which is the most expensive, have copays in a range from a few hundred to $2400.00 max and an additional charge not to exceed approx $700.00. Individual premium runs about $240.00 per month before employers kick in. A third of the swiss get subsidies. Full freedom of choice regarding doctors and hospitals. The swiss re-distribute high profits to companies who insure sicker patients to level the playing field.

Netherlands has no co-pays (illegal), can't charge more for age or pre existing condition, and the average premium is approx. $140.00 per month for an individual which includes drugs. Subsidies are available.

Children are automatically on gov. insurance in both countries, at no additional cost in the Netherlands.

These countries have strong public ins. that sets the rules not strong for profit corporations that set the rules as we have.

When folks refer to a public option that is how strong it needs to be.

If medicare is the choice for public ins. it must make the rules and the ins. companies must obey.
Excessive profit is distributed and there are caps on both overhead and profit. The public option is not competing with private ins. it sets the standard and rules and then the private companies compete amongst themselves following those standards.

Even with the controls in place these two countries are seeing increases in cost above other countries with no for profit ins. involved.