Wednesday, August 24, 2011

If employers quit providing health care insurance?

would those of you that are defending the US health care system still defend the system even though it cost about 2x that of other industrial countries without any better results? That is what is currently happening. Many large companies were paying the full cost of the health care insurance for the employee and family about 10 years ago. Today many of those companies now charge their employee about 25% of the health insurance cost due to the rapidly rising health care costs. Many large companies are now passing on the health care costs that exceed inflation to the employee. If the current rate of increase for health care remains the same, it is expected that employees will be required to pay over 50% of the health care premium within 10 years and over 75% within 20 years. Even if the latest agreement between the white house and health care providers (insurance companies, doctors, hospitals, etc.) comes true to reduce health care cost increases by 1.5% per year (down from 7.5% to 6%), the health care cost to employees will still increase significantly over the next years. Currently almost 1/4 of all health care costs are attributed to administrative tasks and profits for health care insurers (well more than any other country).
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You are right, we have a managed health care system that denies care to millions of people because of rapidly rising costs. Part of the problem is that few people realize the ridiculousness of a situation where you need health care insurance to visit a doctor. Imagine that! Insurance is supposed to protect against catastrophic risks (death, house burning down, etc)- but going to the doctor is a perfectly forseeable cost. Government intervention has essentially mandated such a system- businesses get a tax break on providing health insurance, individuals do not. Worse, by having a third party ( the insurance company,or Medicare usually) involved it severs the economic relationship between doctor and patient. Every other industry is competitive on prices, but why should a doctor lower their prices? The insurance company is paying, and theyve got to pay hunndreds of thousands of dollars for malpractice insurance. Hence spiraling costs for everybody involved, and decreasing numbers of people can afford health care. A very immoral system indeed. Sometimes I think the people who want government run health care have forgotten what our veterans hospitals look like. If this is the care that we give our finest, most courageous, most patriotic citizens, what are the odds that ordinary citizens will get care superior to say, Walter Reed?
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