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My wife and I have had four children. By choice, we carried no insurance to cover the cost of the deliveries. Instead, we put a percentage of our monthly income into a "baby" account. Even though that amount was not a lot, it added up over time.

Rather than being a detriment to covering the costs of prenatal and delivery care, we found that when we told the doctors and hospital that we were paying cash for these services, we received significant discounts. For example, though one of the deliveries would have cost $3500 at our local hospital by paying cash in advance we received a discount that reduced that amount to $2700.

The use of Health Savings Accounts (HSAs) is a tremendous tool that few people use. We carry a high deductible insurance policy for traumatic needs. Then we put the cost difference between that high deductible policy and a more typical policy into an HSA. Done properly, the HSA protects us from extraordinary medical expenses, draws reasonable interest, is not taxable and can be used by us to pay our ordinary medical bills at discounted rates. We have seen the HSA grow steadily to exceed the large deductible amount and we still have coverage for large needs that may occur.

I might add that we have been able to do this on a household income of less that $40,000. If we can do it, anyone can. And if everyone would begin to use tools like HSAs, the markets would start to correct the cost of health care in the US.

My only concern for the correction being accomplished is the interference of the federal government and the courts. If the government begins to assume responsibility for "paying" for medical care, then it only stands to reason they will close the door on tools like HSAs. Or if the courts continue to award extreme settlements in medical cases, doctors and hospitals will be forced to charge ever-increasing prices and HSAs will lose their effective ability to help. Of course, then the free market would not be functioning.

If the free market is allowed to function health care costs can once again become reasonable in the US.

Learn more about this author, Donald Moore.
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