A Failsafe option For Health Care

THE CENTURION CHRONICLE
Special Issue – Mar 2010

A FAILSAFE OPTION FOR HEALTH CARE
(by a useful and creative application of the existing Tax Code)

What the Obama Administration and it's cohorts in Congress have done for the past year concerning health care reform does not appear to really “reform” anything about it.

Most of our anxieties about the issue have been generated by the way all those “honorable” members have gone about the process, allowing only us a paucity of any meaningful details about key provisions that may, or may not, be included in their legislative efforts for it. What little we do know or hear about it is, to use a French expression…cela ne sent pas comme des roses….it doesn’t smell like roses.

Whether our career politicos realize it or not, however, is that they’ve previously established, and more or less set into concrete, certain provisions in our Tax Code which could provide all us taxpaying citizens with a perfect “opt-out” option. One none of them can impede or meddle with without starting a second American Revolution.

That failsafe option is called: An NFP (not-for-profit) 501(c)(3) corporate entity. The key provisions of which allow for “donations” of either cash, goods, or services to it. Furthermore, in some states (such as Delaware and Missouri) they provide specific “indemnity” clauses, thereby protecting its shareholders, directors, officers, etc., from liability….that is, individually immune from lawsuits. Only the organization as a whole can be sued, which is a critical factor of consideration in this instance.

A model application for such a creative use of the existing tax code has already been accomplished, in Georgia, and appears to have been a great success. What I’m suggesting here is….why not apply it everywhere else in the country? The beauty of such an approach to “reforming” our health care system is that it does not require any new kind of legislation or approval by our government machinery. More important, it can be done on a strictly local basis, without the need for a “national” entity, and thus more likely to be supported by local area individuals, businesses, and communities.

Nevertheless, that would not preclude such a mass of local healthcare entities from “associating” together, much like other professional, and business associations do. Perhaps to be called something like – MEDNET- Individually, these NFP 501 (c)(3)organizations might just call themselves – Chartered Medical Center of….(whatever community, country, or district), with the only qualification for membership being to be a registered voter there.

The focus of such chartered medical centers would be on providing preventative and maintenance healthcare, which is the primary concern for most of us.

Hospitalization and catastrophic illness coverage could be handled through separate specialized insurance policies, much like home owners and liability insurance policies. Such policies would simply be for a total dollar limit, with premiums according to the dollar limits chosen, and whatever deductibles a policy holder wanted. Since the insurance industry already provides similar “liability” policies for businesses and individuals, there should be no great difficulty to extend these for that kind of application. Such policies’ costs would be in a range that most people could afford. There would be no questions about what or what is not covered. Only the dollar limit of these policies would be the limiting factor.

One of the more beneficial aspects of such an approach would be that no one would be tied to and dependent on any employer for health care coverage. They would be free from such an indentured status. However, if employers felt it would be an advantage, to help attract or retain quality workers, they could subsidize part or all of the cost of such insurance policies. Probably a much less costly option for them than the current system. The only requirement for that, however, would be to insure that the tax code was amended to allow such subsidies by employers to be a deductible business expense, and, allowing it as a non-taxable item for employees.

So how can such non-profit entities be set up, and how would they get themselves up and running?

First, anyone can incorporate one. Most of the application paperwork for these are standardized formats, and can be gotten from any Secretary of whatever state one resides. There are also any number of legitimate incorporating agencies around the country who will act as the incorporating agent. In most cases it is a modest fee of a few hundred dollars, plus the filing fee with the Secretary of State involved. In most cases that is sufficient. However, it may also be worthwhile to do so through an attorney’s offices which specialize in such things. That, of course, would cost more, but would still be at a nominal cost.

Second, having established such an entity, it is then feasible to begin gathering the various types and categories of “donors” to support it. Everything, from acquiring a suitable facility, remodeling it for the purpose intended, providing it with state of the art internet connections, the services of various medical professionals, doctors, nurses, technicians, support staff, janitorial services, food services, etc., all, could be gathered together, each category “donating” their services(so many hours per week) at their normal fee-for service rates elsewhere, receiving a tax deductible receipt in exchange. The same kind of arrangements could be made with top of the line specialists from around the country for any consultation services they might provide it.

Lastly, big pharma sources could also be induced to provide whatever medications needed for it, either at deep discounts, or just donated at cost, for a tax deductible receipt (making their bottom lines even porkier than they are already).

In terms of costs to individuals, membership fees could be kept nominal, including any co-pay rates. To sustain the operation, much like PBS stations do, local fund raising drives might be organized perhaps semi-annually. Local deep pocket donors would also be encouraged to provide endowments of one kind or another. The point is, since this would be a local entity, local and community support from both businesses and individuals would be more forthcoming, than otherwise, particularly since everyone could see the specific benefits and results being accomplished. Affordable and thus accessible primary health care would a fact in that locality…. not an impossible dream.

Lastly, if such a – MEDNET- system of NFP organizations of this type were to be activated in every neighborhood and rural area of the country, we, that taxpaying voters of this country would have bypassed any of the flim-flam provisions our career politicos may come up with in this coming legislation. We would have neatly opted-out (seceded) from their smoke and mirrors games, and, in such a way, there’d be very little they could do about it. And since such a network of “associated” chartered medical centers could provide reciprocal privileges to anyone who is a member of it, we would then have the freedom to change, mover, or come and go, to any other place, without fear of losing whatever medical coverage we had.

We would have achieved the goal of affordability, accessibility, portability, and most important, continuity of both medical history and care, and all of that without a single government subsidy or costly entitlement program to do it.

If that would not be “reform” what would be….reform?

CENTURION