John C. Goodman lists three ways for Medicare to save money ("Three Simple Ways Medicare Can Save Money," op-ed, Aug. 11). Let's add a fourth: Do away with all dollar-based deductibles and co-payments and replace them with percentage co-pays.
Health insurance with dollar-based deductbiles [sic] and/or co-pays does not give the consumer any incentive to seek out the lowest price for their care; having a percentage co-pay will. A simple example using prescription coverage illustrates this basic principle. Let's say a patient has drug coverage with a $5 deductible per prescription. The patient could care less about the total cost of the medication since her financial burden is limited to the $5. However, if the patient had coverage with a 10% co-pay, there is now a clear incentive to seek out the lowest costing outlet, including possibly using a generic substitute. The same analogy could be extended to care by physicians and hospitals.
Ronald M. Horwitz
Farmington Hills, Mich.
