HEALTHCARE REFORM:WHAT'S MISSING FROM THE DEBATE

With all the hysteria about death panels, socialized medicine, big government and the like is the fact that all of us Boomers need high quality, low cost healthcare as we begin the second half of life. I don't know about you but as I look at my annual budget my insurance costs are growing at a faster rate than any other item. Despite this phenomenon, I have yet to hear from any elected official on either side of the aisle come up with a coherent, well thought through solution to my problem and those faced by 80 million other Boomers. Here is one way to frame the problem.

Insurance rates whether they be life, automobile or healthcare are ultimately based on the pooled cost i.e, claims of all the participants in the insurance plan. For example, my Allstate insurance rates will go up if policy holders as a group exceed what the actuaries project will be their total claims experience, or costs. In other words, the cost for "bad" behavior is passed on to all of us. A great business!

Taking the analogy another step, rising healthcare costs result from "bad" behavior on the part of millions of individuals who are suffering from obesity, high blood pressure, heart disease, alchohol and drug abuse, smoking and other lifesyle oriented maladies which, and here is the good news, are avoidable through wellness programs and other interventions.

Assuming I am correct, the best way to lower healthcare costs, then, is to incentivize "good" behavior by lowering premiums, deductibles and co-payments for individuals who achieve specific levels or parameters for weight, blood pressure, cholestrol levels,and other indices or measures of good health practices.

If government can improve the health of millions of Americans all the mindless chatter will disappear and we can focus on other equally important issues including world peace, the economy and ending hunger in the world.