Health Care Issues

Abusing Insurance

Some health policy analysts point out that insurance was designed to cover catastrophic losses -- not to pay for small expenses involved in routine or elective care. This reminder comes at a time when the insurance industry and its customers are debating whether policies should cover reimbursement for the new impotence drug Viagra.

Those who oppose stretching coverage to include such "lifestyle" drugs make several points.

  • Coverage for Viagra would subsidize its use, exacerbating the potential for abuse.

  • Reimbursement involves processing claims at a cost to the health insurance industry of $25 to $50 each -- a cost which is inevitably passed along in the form of higher premiums.

  • Other factors are already propelling increases in premiums expected to be in the range of 8 percent to 10 percent this year -- further placing health insurance above the reach of lower-income families.

  • With physicians already writing 20,000 Viagra prescriptions a day, the added pressure on prices would be substantial.

Some health policy experts say men pay should pay for Viagra out-of-pocket, just as people pay for cosmetic surgery. They say medical savings accounts would allow consumers to make choices on such optional treatments and reimburse themselves for the expense.

Source: Merrill Matthews Jr. (National Center for Policy Analysis), "Let Men Foot the Bill," USA Today, May 1, 1998.

Home | Support Us | All Issues | Social Security | Debate Central | Contact Us

Dallas Headquarters: 12770 Coit Rd., Suite 800 - Dallas, TX 75251-1339 - 972/386-6272 - Fax 972/386-0924
Washington Office: 601 Pennsylvania Avenue NW, Suite 900 South Building, Washington, DC 20004 - 202/220-3082 - Fax 202/220-3096
© 2001 NCPA