Long-Term
Medical Expenses
The
Need for a New Business Model
Research
is needed to discover and evaluate different business models for
financing long-term medical expenses. These expenses, also known as
independent living services, include
personal assistant services, durable medical equipment, long term
therapies, and maintenance drugs.
The
federal government grants more than $100 million per year to academic
and professional research centers to study issues that affect the
population of people living with disabilities, primarily focused on
policy-related issues There is an enormous amount of data and
information about people living with disabilities, particularly
related to demographics; barriers and facilitators to employment; the
relationship between disability benefits policy, work and economic
well-being; and the costs of living with a disability. Despite
wonderful laws including Americans with Disability Act that have
significantly improved the lives of people with disabilities, the
economic well being of most people with disabilities continues to be
dismal.
I'm
thrilled that many agencies and an increasing number of financial
institutions offer services that provide customers with disabilities
and their support community with information, advice and guidance
that aims to improve their financial health. Expanded use of ABLE
accounts and Special Needs Trusts will positively impact the people
with disabilities' economic conditions. I'm also thrilled that there
is a renewed focus on job development and employment for people with
disabilities. However, I do not expect that any of these efforts
will significantly 'move the needle' re people with disabilities'
financial health.
There
is an underlying prevalent paradigm and business model that inhibits
significant improvements in the financial health of people with
disabilities from occurring. Too many agencies, including Social
Security, still defines disability as an inability to work. Too often
financing independent living services is only available to people
living in poverty. These services must be viewed as investments and
not just expenses. These goods and services must be viewed as
enablers rather than just ways people with disabilities sustain
themselves. Investment in technology that can enable remote
assistance and robotic assistance must be viewed as ways of providing
better goods and services as well as cutting costs. Provider's
advancement should be tied to the advancement of their clients.
There
should be many ways to achieve the goals stated above. One
possibility may be an Independent Living Services Plan (ILSP) that is
a cross between an insurance plan and a retirement plan. Premiums may
be paid based on a percentage of a household's annual income. If/When
long-term medical goods and services are needed, the ILSP would pay
for the services and seek reimbursement to itself from the varied
agencies that should be providing the service. Clients would be
shielded from the myriad of complexities required to finance services
they need. Client's co-pay may also be capped based on a percentage
of a household's annual income.
My
experience is that the business community is best able to develop
innovative, sustainable, scalable and maintainable systems and
business models that truly meets and exceeds the needs of its
customers. How can we engage experienced business people,
entrepreneurs and creative young people to suggest new ways of
financing independent living services? What research is needed to
prove the viability of any new strategies?
