Let consumers tell their health insurance company how much money they are willing to spend each month and ask the insurance company to design a health insurance plan that fits the consumer's budget.
The consumer can provide information that would help the insurance company to devise a plan that aligns with the risk and interest profile as well as the individual's level of commitment to their health and wellness.
A consumer may provide up front to the health insurer information such as:1. willing to use generic drugs when available2. willing to always use a community hospital (unless service is unavailable and consumer must use a higher cost teaching hospital.)3. have a chronic illness (ex. diabetes) and willing to commit to participating in an accredited Diabetes Management Program.4. willing to attest to being a non-tobacco user5. willing to accept a 50% reduction in benefits for treating injuries if in an auto accident and did not wear seat-belts.6. willing to participate in a weight management program if an individual's BMI is in excess of 40.
Once the health insurer receives the risk and preference profiles, the insurer can provide to the consumer three options for the price proposed. A more sophisticated approach might be to use "smart software" that asks a series of questions to better create the consumer's risk & preference profile.
Some practical points to consider: 1. need to have a minimum premium amt (ex. $100 per month.)2. regulations that fairly distribute risks3. one option might be for the employer to purchase an "excess risk pool" to which all individual's health care expenses in excess of $X are applied. This may be a method for distributing risks fairly.
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I agree with you to an extent that there should be a provision for lower premiums for those who are health concious and take neccessary precautions to keep fit.
But the chances of it happening in practice are bleak. The insurance companies in fact count on the share of such people while deciding a general policy and therefore, offer a price to all its customers on the basis of how much they are going to save on prudent customers and passing on to the whole range of customers.
Handling each customer individually and calculating is something no insurance would like to do. Its tedious, time-consuming and cumbersome jog apart from being controversial at occassions.