Does Crowd-Sourcing Democratize the Health Care / Insurance System?

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[By Dr. David Edward Marcinko MBA]

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As a health insurance agent for more than a decade, certified planner and financial advisor for 15 years, medical provider for more than two decades; and Jesuit trained public health advocate throughout my entire career; I understand the concept of health, economic, education and working-class disparities. This includes utilitarianism, healthcare rationing and the allocation of scare resources [time, treasure, and talents] in society.

Yet, there is a new and emerging related ethical concept which no one seems to address. It appears to be a public “good”, but upon deeper reflection may achieve just the opposite effect as the law of unintended consequences takes sway.

So, am a “thought-leader” and early idea-adopter; or just a moral and philosophical luddite?


Today, we in the healthcare industrial complex stand on the precipice of our next frontier in finance – one that is aimed at instilling a culture of internet connectivity, crowd-sourcing and health care finance.

As opposed to relying on large private health insurance, state institutions and/or government entities like Medicare, Medicaid, SHIPS, and/or the PP-ACA for capital; SOME private citizens, non-insured patients, and even emerging business entities have begun turning directly to individual investors to fulfill their healthcare financing needs.

Shifting trends in mass communications, advancements in technology and regulatory overhauls have now made it possible to raise large sums of money by pooling it from the masses. This new “crowd-finance” constitution is not only resolving inefficiencies and inequality in conventional capital market business structure, it is empowering a new generation of retail products and trading platforms that are essentially reuniting the “people’s capital” with growth, yield and innovation. I believe this democratization is a good thing.

And, online marketplaces are presently revolutionizing the way people invest, and making it easier for the common-man-in-the street, patients, or other investor to obtain the yield typically swallowed by insurance and banking establishments as well as to access the deal flow previously only attainable through brokerage or insurance company relationships.




For example, the SEC’s recent promulgation of Reg A+ coupled with a sound venture exchange framework is leading us toward a more level playing field for both smaller issuers and investors. Instead of serving as an exit strategy for the financially privileged, through Reg A+, the investing public will once again be able to partake in the appreciation of coveted growth stocks; or personal aggrandizement to pay off medical providers, hospitals, or insurance companies or various health insurance debts.

New micro-investing apps are now emerging to help even minute sums of capital invest in institutional-grade products via retirement vehicles – ultimately helping convert a nation of spenders into a nation of savers. OR, are they?

Here’s How?

Healthcare – The Moral Duty to Buy Health Insurance

Moral Duty to Buy Health Insurance

Click on this link to read it – Moral Duty to Buy Health Insurance

A warning against crowdsourcing your medical care on social media

A warning against crowdsourcing your medical care on social media


And so; does crowd-sourcing REALLY democratize the health care / Insurance system? OR, does it promote a type of moral hazard, risk tolerance, or a certain loss of “herd-immunity” against the purchase or proper use of health insurance; when others are desperately trying to pursue personal responsibility.

In other words, insurance is based on the law-of-large-numbers. And, this idea may disrupt that mathematical actuarial concept; thus skewing the bell-shaped-curve and hurting us all.


Why Consumers Often Err in Choosing Health Plans


Evaluating health insurance plans can be daunting and confusing, and most people don’t get much guidance, research shows.



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Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners(TM)


Dr. David Edward Marcinko, editor-in-chief, is a next-generation apostle of Nobel Laureate Kenneth Joseph Arrow, PhD, as a health-care economist, insurance advisor, financial advisor, risk manager, and board-certified surgeon from Temple University in Philadelphia. In the past, he edited eight practice-management books, three medical textbooks and manuals in four languages, five financial planning yearbooks, dozens of interactive CD-ROMs, and three comprehensive health-care administration dictionaries. Internationally recognized for his clinical work, he is a distinguished visiting professor of surgery and a recipient of an honorary Bachelor of Medicine–Bachelor of Surgery (MBBS) degree from Marien Hospital in Aachen, Germany. He provides litigation support and expert witness testimony in state and federal court, with medical publications archived in the Library of Congress and the Library of Medicine at the National Institutes of Health.


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