HealthBeat FYI: Changing the Face of Health Insurance

August 16, 2007

The New York Times ran a piece today titled "Who is the New Face of Plastic Surgery?" The thrust of the article is that more so-called "blue collar" workers are finding ways to finance cosmetic procedures, including taking out loans and using credit cards. (http://www.nytimes.com/2007/08/16/fashion/16skin.html?pagewanted=1&ref=health)

One of the surgeons interviewed expressed his concern that many of his younger patients are financing cosmetic procedures instead of buying health insurance:

But some doctors worry that some patients are spending on vanity care, even as they forgo health insurance because of its expense - a decision that is particularly risky should something go wrong or need to be corrected after the elective procedures.

"I have some 23-year-old women who are getting breast implants who think they are young and healthy and don't need health insurance," Dr. Rapaport said.

"It's interesting that an article about financing elective cosmetic procedures would claim people don't buy insurance because it's expensive," said Devon Herrick, senior fellow with the National Center for Policy Analysis. "Obviously, people who have control of their money will spend it when they believe they are getting a good value."

Simply put, people will be more willing to spend on health insurance when health insurance companies are able to sell the policies people want. As outlined in a brief analysis published by the NCPA, opening up the insurance market to competition would allow patients to spend money on policies built to suit their needs.

"Maybe young people who are willing to finance cosmetic surgery with monthly payments may also prefer to self-insure and borrow for medical services should the need arise," continued Herrick.

Creating a Competitive Health Insurance Market: http://www.ncpa.org/pub/ba/ba558/

NCPA health experts are available to discuss this revolutionary health care reform.

####