Our Plan for

How Healthcare Works under Circulatory Spending

Circulatory Spending ImageHealthcare will work differently under Circulatory Spending. Health Insurance Policies will no longer be used in America. Instead the URHB will be offering Healthcare Line of Credit(HLC) to help pay for healthcare. So let's see how this will work.

See, all people need is financing to pay off their hospital bills without the fear of bankruptcy. They need to be able to go to any doctor or hospital without worrying about networks and being turned down because of the type of coverage you have or preconditions. This is why the Universal Retirement Healthcare Bank(URHB) was created. The URHB will not be a Single-Payer system. It will become a First-Payer system. In a First-Payer system the URHB will pay your hospital bills then you the Second-Payer, will pay the bank back with monthly payments. The new URHB heathcare tax plus the loans, the financial transaction tax and URHB private bank interest tax the URHB will help supply the money needed. Here's what happens.

You get a healthcare line of credit from the URHB. Then you will be given a line of healthcare credit that you use to pay your health bills. Each adult or family member age 21 and older can be issued a card to be used for healthcare payments you can not afford yourself. The card you get from the URHB has no money attached to it. When you use your card information like time, date, location, procedure, cost and order number will be sent to the URHB. Then you turn in the bill to your bank's location in your area to have it confirmed. Then the URHB will pay the bill your doctor or hospital charged and then have monthly payments deducted from your URHB account. Use your card for more expensive medical cost not just simple things like checkups. The URHB is keeping a running tab of what you have used so the URHB will get reimbursed by you with monthly payments.

The URHB will issue healthcare Credit so customers will not fear that their coverage will run out if they are taken down with a severe disease. The URHB will give each person to start $25,000 of healthcare credit with a total maximum amount of $250,000 and they can use when ever there is a medical bill they can not afford to pay for themselves. A married couple could have up to $500,000 to cover both plus children. Healthcare Credit will cover the amount charged on to that person's URHB card starting as low as 5.5% interest rate for $25,000 that pay over a 10 year period. Rates go up 0.5 for every $25,000 more of healthcare credit. If you want more to start say $50,000 then your interest rate would be 6%. Unless you really need more there is no reason to get more because if your start to run out then your credit will automaticly increase by $25,000 and the new rate would be added and monthly payments would be recalculated. Total will not go pay $250,000. You must have at least $10,000 in your URHB account to get healthcare credit. Rates get higher as you get more healthcare credit to encourage a healthier lifestyle. Take a look at this example below; HLC = Healthcare Line of Credit, HC = Healthcare cost, TIP = Total Interest Paid, HCT = Healthcare Credit Total, LHCT = Last Healthcare Credit Total, NHCT = New Healthcare Credit Total, NHLC = New Healthcare Line of Credit

A person with a $50,000 healthcare line of credit at age 38 gets a bill from a hospital of $8,000 what happens first is the URHB will pay the bill based on what the hospital or doctor charged. The interest is 6% APR. Then between the URHB and you the bill is broken down like this; $8,000 HC + $2,657.97 TIP = $10,657.97 HCT + $0LHCT = $10,657.97 NHCT/120 months = $88.82 per month. The customer's NHLC = $50,000 - $8,000HC = $42,000. Three years later at age 41 you get a bill from a hospital for $5,000 that could go down like this; $5,000 HC + $1,661.23 TIP = $6,661.23 HCT + [$10,657.97 LHCT - ($88.82 X 36 months)] = $14,121.68 NHCT/120 months = $117.68 per month. The customers NHLC = $42,000 - $5,000HC = $37,000. At age 50 you get a bill from a hospital for $12,000 that could go down like this; $12,000 HC + $3,986.95 TIP = $15,986.95 HCT + [$14,121.68 LHCT - ($117.68 X 108 months)] = $17,399.19 NHCT/120 months = $144.99 per month. The customers NHLC = $37,000 - $12,000HC = $25,000. At age 60 you get a bill from a hospital for $15,000 that could go down like this; $15,000 HC + $4,983.69 TIP = $19,983.69 HCT + [$17,399.19 LHCT - ($144.99 X 120 months)] = $19,983.69 NHCT/120 months = $166.53 per month. The customers NHLC = $25,000 - $15,000HC = $10,000. If a year later that person dies then the URHB would settle up any remaining bill. If you were sharing that healthcare credit with a child children or then they would still be covered for the amount of $10,000. So if someone died and never used their card or have a zero account balance then your account would not owe anything to the URHB.

If you happen to go over your total then the remaining portion will be ducted from you personal account. For example, if you selected $100,000 worth of healthcare credit and the URHB pays a bill of $15,000 then $100,000HLC - $15,000HC = $85,000NHLC left to use at a future date. If another bill for $15,000 came in then $85,000HLC - $15,000HC = $70,000NHLC left. If another bill of $15,000 then $70,000HLC - $15,000HC = $55,000NHLC left. If another bill of $15,000 then $55,000HLC - $15,000HC = $40,000NHLC left. If another bill of $15,000 then $40,000HLC - $15,000HC = $25,000NHLC. If another bill of $15,000 then $25,000HLC - $15,000HC = $10,000 NHLC. If another bill of $15,000 then $10,000HLC - $15,000HC = -$5,000 in debt. When your credit goes to minus status then there would be an automatic increase of $25,000 to your healthcare credit and that would raise your interest rate by 0.5 based on the scale. If you ever reach the max of $250,000 then that portion will be deducted from your URHB personal account.

You can control your usage more by splitting your payments 50%/50%. So if the URHB paid a bill of $20,000 then you could pay $10,000 yourself by having the URHB deduct it from your account and let the other $10,000 go towards your healthcare credit. You choose how you want to pay. You can even make a deal with the URHB at different levels like 10%/90%, 20%/80%, 25%/75%, 30%/70% or 40%/60% what ever is best for you. You can also set up a deductable amount like $250, $500, $750 or what ever the amount you choose. So if you have a deductable of $500 and you use your URHB account to pay for things like normal checkups and it cost like $40 then it would be deducted for your account only and you would still have $460 left in your deductable before it would go on your healthcare credit. For bigger amount, for example, you pick 25%/75% and a $1,000 deductable then that means if the URHB gets a bill of $20,000 first $1,000 would be deducted from your account to make the bill $19,000 then 25% or $4,750 would be deducted from your account and the other 75% or $14,250 would go towards your healthcare credit. You can have a spit only or deductable only set up as well. This will open the door for a wide array of choices that fits your specific needs.

For people currently on medicare your monthly payments that you currently pay will stay at the same monthly rate based on pay scale with your usual deductible. Instead of having a supplemental plan you will receice healthcare line of credit from the URHB. URHB will pay for healthcare when you use your new card. URHB will continue to cover everything that Medicare covers right now. That means the URHB will pay 80% of the total bill that medicare does not cover and the 20% will be added to your healthcare Line of credit. If you did not have a supplement plan then the the URHB will pay 80% of the bill and you would have to cover that 20% portion yourself when you get the bill. Individuals currently on medicare will be the last group to be covered on Medicare. Everyone on Medicare will save money sense you do not pay for having credit until you use it and to will be over a ten year period. Everyone will be mandated to pay off your medical bills.

Let's show you a quick example of how this works. Someone over the age of 65 who was currently on Medicare gets a $50,000 healthcare line of credit and goes to get surgery that cost $20,000 then the formula would be like this for that person; $20,000HC - 80% = $4,000 + $1,328.98 TIP + $0LHCIT = $5,328.98 NHCIT/120 months = $44.41 per month. For the customer your HLC would be like this; NHLC = $50,000 - ($20,000HC - 80%) = $46,000NHLC. That customer now has $46,000 worth of healthcare credit left to be used at a later date.

For people who are close to the Medicare age, let's say age 64 to age 60, when they get signed up the URHB will pay 70% of the cost of Part B bill and 30% will be added to Part B Healthcare credit. People age 59 to age 55 the URHB will pay 60% of the cost of Part B bill and 40% will be added to Part B healthcare credit. People age 54 to age 50 the URHB will pay 50% of the cost of Part B bill and 50% will be added to Part B healthcare credit. People age 49 to age 45 the URHB will pay 40% of the cost of Part B bill and 60% will be added to Part B healthcare credit. People age 44 to age 40 the URHB will pay 30% of the cost of Part B bill and 70% will be added to Part B healthcare credit. People age 39 to age 35 the URHB will pay 20% of the cost of Part B bill and 80% will be added to Part B healthcare credit. People age 34 to age 30 the URHB will pay 10% of the cost of Part B bill and 90% will be added to Part B healthcare credit. People under 30 years of age will be both young and healthy enough to build up more money in to their account. Every American citizen would be covered for Medicare Part A. Your Medicare monthly rate and deductible would end since the new healthcare payroll tax is paying for it. These people can still split the cost by selecting what percentage they want to have deducted from their account and what percentage to be put on healthcare credit. This is only during the initial sign up once we switch over to the new system. Then on the next sign up period 100% of the bill will be added to your healthcare credit unless you choose a percent range you would like to pay.

The URHB will charge a monthly fee to manage your account plus you will pay interest on the credit once you use it. Your monthly bank fee will be deducted from your account as well. Monthly rates that the URHB will charge for a line of credit will look like this;

Age 21 and over $10 per month Fee.
Child under Age 21 $5 per month Fee.
$10 a month more per person that smoke.

Example; Person age 36 with kids; $10 Adult + 4 kids(4 x $5 = $20) = $30 per month. Your family would be covered for first payer URHB with a healthcare line of credit. If you are married or share a child with someone then you can both carry any kids you may have from your account.

The reason the monthly fees exist is to help pay for the salaries and administration cost for the URHB. Plus, if you have children under 21 years of age you can apply your Part B coverage percent to your child or children you added to your healthcare credit account.

If a person who was covering the whole family on their credit dies then your family would still be covered on that credit and the cost for the fee from the URHB would be deducted from the that persons' account. If monthly payments were being deducted then that cost too would be deducted from that persons' account. If there is no surviving spouse then any child under 21 can be covered from their parents account until an adult is named to care for the children with a lump sum payment to the insurance company from the account of the person who just died. If the child is working then that child could cover himself or herself and their younger siblings.

Family members can also cover each other with their healthcare credit. For example, a family of four has two adult children and each of them got the max of $250,000 worth of healthcare credit. Each family member can add each other on their credit which means that the entire family is now covered for up to $1,000,000 worth of healthcare credit. Plus, each family member still has money building up in their URHB account. So if one of your family members was getting low on healthcare credit then the other family members could use their credit to share the cost so that family member would not have any financial worries.

There will be no mandate to get healthcare Credit. There will be a mandate that everyone will have to pay their own medical bills. This means that you can either get a healthcare Credit or use your withdraws from your account to pay medical bills, set up other investments to pay medical bills or a combination of all options. If you do not believe in hospitals then you have nothing to worry about.

Your healthcare line of credit can be used on operations, emergencies, dental, vision, hearing, certain medical equipment and even expensive prescription drugs. Everything that the Affordable Care Act covers can be covered by the URHB line or credit. But you can customize your plan to best fit your needs and budget. Your new healthcare card can not be used for any other purpose or you will suffer a heavy penalty like a minimum of 10 years in prison and up to $500,000.00 for an individual up to $5,000,000.00 for a corporation for a felony conviction per occurrence; up to $250,000.00 for an individual and up to $2,500,000.00 for a corporation for a misdemeanor conviction per occurrence. There will be no sudden closure of a community hospital that threatens the safety of patients if caught generating false bills. No one will be mandated to by a healthcare Credit Insurance policy either. But you will be mandated to pay for your own medical bills. Everyone will be responsible for paying their own bills and will not be able to write-off your healthcare bills on any bankruptcy.

People with a Temporary Foreign Work Visa will be placed in a high risk pool within the URHB and pay a special tax of 20% from what the employer would pay them through the new universal tax code to cover cost of treatment they may need while they are in America. They will be given a special card that they can use to help pay their hospital bills. It will cover the cost of stabilization. The cost to stabilize undocumented immigrants will also come from this high risk pool to get them stabilized then that person will be deported back home to get any additional treatment they may need. Any doctor or hospital treating an illegal immigrant must report it to the immigration office for proof in order to be paid by the URHB high risk pool. If that immigrant does not pay the bill they owe that bill will follow them where ever they go in the U.S.A. and most be paid if they ever want to become a legal citizen. A fingerprint or some type of identification would be required for those who do not have any documents.

There are two possible ways healthcare can be priced. Option 1 would be that hospitals will then set a reasonable cost for all of their test, surgeries and treatments based on what health insurance and Medicare was paying. They have a Medicare and health insurance reimbursement schedule that can show you how much hospitals expect to get paid for what procedure they perform. Then patients would just pay the bill with their healthcare credit and or money from the URHB. States would need to make sure that hospitals are following the reimbursement rates.

Option 2 could be that states will then set a reasonable cost for emergency care to stabilize a patient. From there hospitals will compete for what additional care a patient may need. For example, after a patient was admitted to the emergency room and was stabilized a doctor would then tell you what is wrong and what further treatment you may need and options you have to use. This information is then forwarded to your Healthcare Credit Insurance company. Then they will talk to other hospitals about your situation and see what other hospitals are willing to do the procedures at a lower cost. If so then that patient can either be transfered there or the hospital the patient is at could match that price to keep that patient at their hospital. Either way, patients will then know exactly what everything will cost and can get price comparisons from other hospitals to find the best deal if they just want checkups and preventative care. Prescription drugs both generic and especially name-brand can then be lowered since all of the governments will no longer be taxing profit.

Advantages for hospitals is that they will no longer have to worry about what kind of insurance you have and what it will cover. This will put an end to lots of needless paper work and phone conversations which insurance companies. Your customers will be able to just pay the bill themselves as they are checking out or have the bill sent to the URHB. Doctors will no longer be apart of a network so you can pick your own from any where you choose.

Government needs to make changes in how doctors and nurses are hired and trained. Bringing down the cost of tuition for medical school and primary care doctors, capping insurance liabilities, reducing the frequency of re-certification tests, expanding rules for some nurses to perform more primary care closer to what doctors can do, opening up opportunities for more private-sector investment in residency programs, expand board certification and more are just some of the things that government can do to increase the number of caregivers needed to meet the demand.

Since the URHB is the first payer for healthcare insurance companies will be working with you. Their job would be to act as your agent and help you get the best deal possible. With their network they can offer customers discount cards that people could use to help lower prices. Insurance companies can do the price comparisions for you and help you get transfered to a different doctor or hospital that willing to give you the best price. They could also get into the money management business and coach people on how and when to use your withdraws if you want to retire early or start your own business someday, put your children through school with no debt, take that dream vacation or buy that dream home or what ever you may wish to do in the future. They could help you figure out how much healthcare credit to get and what percent to have deducted from your account, what investments to make if any with your withdraws what type of other insurance your need like car, home or life insurance. You can also have those cost deducted from your URHB account as well as the fee for management service.

All young people when they turn 18 they will be mandated to talk to one of these companys to see what kind of service they can do for you. If you are already age 18 and over when we switch to Circulatory Spending then you would only be encouraged to try one of these companies but not mandated. The goal is to make sure that young people get the skills they need to manage money in their account properly so they do no make the mistake of using all of their withdraws early in life then run out. Since welfare programs will be reduced dramaticly and or eliminated your account is going to have to be used wisely.

Disaster Relief Loans

We could also use the URHB for a different way to handle disaster relief. Since the National Flood insurance program can be eliminated along with the Small Business Administration and FEMA can be downsized the URHB can also act as a first payer the next time there is a major flood, wild fire, hurricane, tornado outbreak ect. It can work like this, a customer purchases what I call a "Disaster Relief Pre Approved Loan"(DRPAL) and have the cost deducted from that customer's URHB account. These will be special low interest loans that you would qualify for only during a time of natural disaster in your area and your home was damaged or destroyed by such disaster. Rates are all fixed and will range from an interest rate of 1.5% to 2% for home owners and renters of appartments, 2% to 3% for private nonprofit organizations and as low as 3.5% for business based on ability to pay and how long your loan is up to 30 years and whether your flood risk is higher or lower. The amount you would be approved for would be based on how much the home is worth followed by how much you have in your URHB account at the time. To reach the full amount of available loan you need at least 50% of what your home is worth. If you have less then 50% then the amount of loan you would qualify for goes down by 2% for every percent you are off by. So if your home is worth $100,000 then there needs to be at least $50,000 in your URHB account. But if your home was worth $100,000 but you only had $30,000 in your URHB account then your loan would be $60,000 max but will go up to the full amount of your home as more money grows into your account. The minimum loan is $50,000 and the maximum loan amount is $500,000. Renters may borrow up to $50,000 to replace damaged personal property including want your auto insurance would not pay for your vehicle.

Businesses can qualify for a DRPAL up to $2,500,000 in low interest loans to help cover physical damage not covered by insurance. Small businesses and most private nonprofits suffering loss due to the severe weather and flooding, earthquake ect can apply for up to $2.5 million for any combination of property damage or economic injury under the DRPAL program. This would make it much easier to start the rebuild process to get businesses up and going after a disaster occurs.

The fee to qualify for a DRPAL could be anywhere between $5 to $50 per month max based on how much your home is worth. The monthly rate is based on the amount of the DRPAL X 0.0001 = monthly rate. So is you had a $150,000 worth of DRPAL then the rate would be $15 per month. The advantage of having a DRPAL is that you would not have to go thorough the process of filling out an application when the disaster occurs. Since you would be already approved you would just go down to the URHB once your area has been declared a disaster and make a withdraw from your URHB account then determine how much of a loan you need if any to rebuild. The fee to qualify for businesses would be the same so if a large company got the max of $2,500,000 then the monthly rate would be $250 per month.

Lets say a major flood occurs and loan claims start coming in to the URHB. The URHB will come out and evaluate the damage done. If your house was damaged and you were approved of up to $150,000 for your home then you and the URHB would determine how much of a low interest loan you need. For example, your home had suffered $75,000 worth of damage and you have $250,000 in your URHB account. You make a withdraw from your account at 15% to have $52,500 if you did not have any emergency withdraws left then you would need $75,000 - $37,500 = $37,500. The URHB would then give you a loan for $37,500 say at 1.5% interest rate for ten years. Your monthly payment would be about $336.72 and that amount would be deducted from your URHB account. You can pay if off over a longer period like 15 years to make your monthly payment at around $232.78. Then you would have $150,000 - $37,500 = $112,500 left to borrow the next time you need a lone to cover disaster damage. The DRLAP you are getting are life time unless you move to a bigger home. Remember, these are just examples and may not be your actual interest rate. The whole point is with the withdraws you can make from your account and low interest disaster loans Americans can do a much better job at managing their own releif efforts.

Since insurance companies will be more in the life management business they can help you determine whether you should get a loan or not and help you find reputable home repair companies that offer good rates. They can also help you with finding temporary housing, food clothes ect to help you get through the distater.