Companies Limit Health Coverage of Many Retirees: The best-kept secret about America's healthcare crisis.

Seventy (70) million Americans are medically underinsured, and of those at least 41 million have no health coverage at all. According to a February 3rd article by Milt Freudenheim in the New York Times, "Companies Limit Health Coverage of Many Retirees", that number is growing. Companies are reducing health insurance benefits to retirees, or cutting them altogether. The sad truth is that the people who are often least equipped to deal with this problem, are facing the burden of higher premiums and reduced or eliminated benefits.

Many assume this is because doctors and drug companies unfairly set high prices. In addition, more people are getting sick and requiring care, and more people are living longer - often with hardship cases - all of which put additional strains on the healthcare system.

Healthcare's Best Kept Secret

Much of the above reasons are true, however the biggest reason why costs are spiraling out of control is a result of insurance discounts and fee collection administration.

Research shows that hospitals and physicians receive about 50% net income; after accounting for insurance company negotiated discounts, and the administration costs of collecting those fees. Providers raise their rates to accommodate these discounts and costs.

Those who have no health insurance, and do not qualify for welfare, pay the highest retail price for medical services - in some cases double what the insurance companies are paying.

In fact, more and more providers are opting out of accepting traditional insurance - with all its administrative costs - and offering services to patients who pay cash (with some medical discounts)instead.

New Alternative Solutions

A company in Iowa, called Value Health Access Corporation (VHAC), has created a reasonable solution for those who have limited options. VHAC's program is called - PlanB for Health, a medical discount health plan that is a unique approach to managing the rising cost of healthcare.

PlanB for Health addresses the inequity in health care costs between the high retail prices paid by the uninsured, and the PPO discounts given to those covered by the large insurance companies - to the benefit of the consumer.

With modest monthly membership fees - they offer small businesses, families and individuals up to 50% savings on essential healthcare services including: hospital and physician care, prescription, dental, vision, and senior care. Some of their plans include up to $7,500 in accident expense coverage (with only $100 deductible).

In addition they offer many value-added services that promote better health, such as: alternative health, wellness programs, preventative modalities, counseling, 24-hour nurse hotline, emergency helicopter transport, travel assistance, medifile medical information retrieval, and a patient advocacy service for helping people deal with catastrophic medical situations.

Company representative Ira Roffel states that PlanB for Health is no cure for people who do not have a ‘cradle to grave’ low-deductible comprehensive health insurance policy. Those that can afford traditional health insurance should get it. Yet for those without -PlanB for Health can significantly mitigate out-of-pocket exposure.

For employers whose profits are limited by ever-rising health care costs, a medical discount health plan is an affordable alternative to cutting health benefits for employees. It is also a great option for those employers who can’t afford to offer a health benefit at all.

Medical savings programs encourage self-sufficiency, and may eventually drive down the cost of care as they make it less expensive for healthcare providers to deliver services.