Another approach to funding health is to realise that most medical costs do NOT require insurance. That is, we can predict pretty well how much we need on average for the “regular” items. These are things like dental work, regular “check ups”, pre-natal, birth and post natal, injections, minor accidents, treatment for diseases such as diabeties etc.

Major accidents, major unexpected health issues like a heart attack (even that possibility can be estimated), where people do not have the resources for immediate treatment can be covered by treating people when the emergency happens, as we do now, and paying the bills through non recourse loans.

Given this view then insurance becomes unnecessary if people have the resources to cover the predictable.

So instead of health insurance or medicare let us have “medisave” where we give everyone an amount of money each year that they can only spend on health. The money earns interest and can accumulate – but it can only be used for health related matters.

We pay for emergencies when they occur by “automatically” giving people non recourse loans that we repay from the health money we get in the future. We can vary the amount of money each person gets if they have chronic illnesses ( or if they have an emergency). We write off the loans if they die.

Money in a person’s account can be passed on as a normal asset.

We pay for capital works through giving every person in the country the right to zero interest loans that can only be invested in health infrastructure – buildings, machines, etc.. These loans will be paid back from the earnings on the infrastructure. The electorate chooses where they will invest their loans.

This brings choice, frugality, “insurance”, and markets to the provision of health care and can be easily organised as the only change is the flow of monies not the actual physical systems.

To move to the system is easy. We transfer all the “reserves” of health insurance companies to medisave accounts. Insurance companies are now the “banks” where we keep our health money and through which we arrange our zero interest loans. Each year the government transfers from taxes an amount of money to each person’s medisave account depending on their medical condition.

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