Homes and Health Care

Homes and Health Care

I do not consider myself a Democrat or a Republican.  I believe in social services as well as reduced taxes.  I guess that means I care for the common man so long as the common man does not negatively impact me financially.  With that understood, I am perplexed by the current health care plan.  (How does this tie to real estate? – Bear with me.  I will get there!).  I was an original believer that a health care program for all was a good idea.  It just makes sense.  However, as rates re-set this year, I found an overwhelming need to cry foul.  A long, hard, loud from the rooftops foul. 

(This is where I tie in to real estate!)  If a developer sets up a HOA, they need to do their best to approximate yearly expenses before they can sell a single piece of real estate.  In fact, a sales contract is not valid without providing HOA docs and a disclosure statement noting yearly HOA fees.  On top of that, at least in the great State of Florida, a developer is limited to a yearly cap on how much those fees can be increased.  Additionally, if utilities or insurance companies try to increase their rates, they need to go through a regulatory review by the state which is usually accompanied by much kicking, screaming and back-room negotiations. 

These caps and oversight are all done with an eye towards the protection of the consumer.  It does no good for someone to own a home if they suddenly cannot afford the ownership expenses due to yearly increases.  This makes sense.  Obviously, this concept did not make it to Washington, where health care insurance costs have just gone up somewhere between 20% - 30% with no oversight.  It appears that the same powers that care whether you can afford to stay in your home, do not seem to care whether you can still afford to live there if you get sick.

They will tell you that, even though rates have increased, there are still plenty of affordable plans to choose from.  What they fail to explain is that those lower cost plans have much higher deductibles.  Therefore, if you have to change plans due to cost, and then get sick, you will find yourself with an out of pocket deductible that more than obliterates whatever savings you just achieved by reducing your benefits to a more affordable plan.

I have never been a fan of real estate regulatory oversight.  I feel that the actions of the few have caused unnecessary control over the actions of the many that do it the right way.  However, what is good for the goose is good for the gander, so they say.  The same controls put in place with an eye towards homeowner protection should apply to the health care industry as well.  It is a simple concept.  It should have been simple in its implementation.  Otherwise, it is buyer beware to those who get sick. 

Until next time…

Keep kicking the dirt!

Jeff Gersh is President of Gersh Consulting Services, a real estate advisory firm, headquartered in Orlando, FL.  He may be reached at jsgersh@gmail.com or 407-468-9328