99% of the population has no idea where the closest maternity store is. Once pregnant, all of a sudden it matters and while one could have passed the store for years, it wasn't noticed until needed.
Insurance is the same way. We buy life insurance in case we die. How morbid is that? "Sure, give me a Million bucks worth, what the heck!" We buy auto insurance in case we get into an accident. We buy disability insurance in case we can't work. We buy homeowners insurance in case of fire or disaster.
In short, we spend thousands of dollars for insurance and we pray and hope we never need to use it. What a great industry to be in.
However many of us don't buy any insurance unless mandated. We take our chances. Plenty of people in their 20's opt out of health insurance because at that age, they know they won't get sick. Others don't buy insurance because they don't see the value.
Our bodies unfortunately are like a car. They need regular tune-ups. New cars off the lot can be lemons that need constant repair or in some cases, major overhauls. It's no wonder that hospital emergency rooms are the #1 place people go without insurance. Naturally, they are triple the price of regular doctor offices.
Private health care is what has made the USA. Can you imagine life without Blue Cross? When we need medical attention, we want it now. Not in one month, not in 3 months, not in 6 months like it is in Canada and most other countries with public assistance.
I'm not here to debate the pro's and con's of private and public health care. As an entrepreneur and business owner, I favor private. Which do you favor?
Obama Motors and Obama Financial has decided running banks and auto companies isn't enough so he also wants Obama Medical. How is he going to pay for this? In part, through a 5.6% surcharge on the wealthy. He has decided that the wealthy have had it good enough in the past and it's time to pay up.
Warren Buffet and Bill Gates each worth some $250 Billion are wealthy. Oprah is wealthy. Tiger Woods is wealthy. But $1 million a year? Most small and medium private businesses in the USA are Sub-S meaning that all income flows down to the owner. The owner has to pay taxes whether or not there is cash in the bank. The 5.6% surcharge will be paid by the owners as an added tax on their business profits, the same profits needed to stay in business.
In effect, we will need to raise prices by 11% or cut costs by 5.6% just to break even. The possibilities of companies doing this is the same as Obama Medical reducing medical costs. So something will have to give. And it won't be easy.
We have found the solution at TNG. Create wellness opportunities and let everyone be accountable for their own health and let each individual pay based on their accountability. Smoke? Pay more. Don't increase your annual metrics? Pay more. Take care of yourself? Pay less.
In the past two years, we have raised premiums less than the rate of inflation. Imagine that. Bottom line: Do you want to decide your health or let the government decide your health?