Professor: Treat health costs like auto insurance rates

One university professor is suggesting that health insurance rates should be set the same way that auto insurance rates are calculated.

According to healthcare management professor and economist Larry Van Horn, people are not held accountable for their healthcare decisions. This has led to more inefficiency and higher costs in the system. "My rates are not based on my underlying lifestyle choices, which are the primary determiner of how much health care I’m going to consume.

We need to get to a world where I’m held individually accountable for the decisions that I make,” said Van Horn in a statement. One of Van Horn's suggestions includes creating a separate pre-paid health plan for "maintenance" needs. He also thinks health care benefits should be taxed to make people think more about the services they purchase. Just like those with the safest driving records tend to get the best auto insurance rates, Van Horn's proposals would produce similar benefits for those who make the best health decisions.