Risk Equalization and deductibles

In this blog, I have written about the Swiss (part one, part two) and Dutch healthcare system extensively. Both systems have a “regulated competition” where insurance is mandatory and insurance companies are mandated to provide a specific insurance benefit package. In the Swiss system, 85% of medical expenditures are financed by insurance premiums and 15%…

Health Insurance: Why rent when you could own?

Devon M. Herrick writes an article (“Why rent…“) creating a clever analogy comparing HSAs to equity in a house. He likens traditional health insurance to renting a home, while having a Health Savings Account (HSA) is more like owning the home. Making contributions to HSAs in essence gives you “equity” towards future health care expenses.…

Cross-border health insurance

The San Diego Union Tribune has an article (“Cross-border coverage“) profiling entreprenuer Jim Arriola and his low cost health insurance plan covering medical care in both the U.S. and Mexico. His company, Sekure Healthcare, provides a limited-benefit insurance program through employers along with a discount health card program. Both can be used by Sekure members…

GM-UAW deal

An explanation for the recent General Motors-United Auto Workers deal is pretty simple: it is a transfer of risk.  GM will set up a Voluntary Employee Beneficiary Association (VEBA) which will be controlled by the union.  According to the Detroit Free Press (” UAW ratifies”) GM will place about $30 billion dollars in the account…