The problem with the current health care system is that it has been removed from the free market. Individuals, especially those who have a history of illness, smoking, or obesity, find it virtually impossible to get health care on their own. And when they can, the costs are astronomical. The cause of this is simple... health care companies are not competing for your business as an individual, they are competing for the business of your employer.
The health care industry has a pretty good racket going on. Convince people that their employers should offer them health care. Convince companies that they can not hire good workers unless health care is a benefit they offer. Lobby congress to pass legislation offering tax incentives for employers who offer health care, and in some circumstances require employers to offer health care.
What effect does this have? Businesses are not as sensitive to increases in coverage, and whatever the cost, get to write off the expense. Health care companies only have to cater to the businesses and not the individual, making the cost of underwriting and closing each transaction smaller per policy than it otherwise would be.
Not that they pass any savings on to consumers. In my small business, it has often proven that the company policy costs considerably more than the same policy an individual could get... but because it is an expected benefit, I have to offer health insurance or lose good employees. What a scam. And even the costs to the employee are too high, higher than they would be in a truly free market system.
Think about how many car insurance commercials you see on tv. The Geico lizard or cavemen are on virtually all the time. And then there is David Palmer with All State, the eSurance cartoons, Progressive and their semi-celebrity ads, and State Farm with their “real life” agents. Car insurance commercials are on all the time. Why? Because they have to compete for your business and you have to have car insurance. You know what else happens with car insurance? When they are fighting for your business they offer you competitive prices. They have to, because they have to work for every single customer they get. And everyone can get car insurance... even if you have had a DUI in the past. It might be expensive... but you can get it, and people want your business. You also get pretty good service from your auto insurance company, because they know you can go to one of a number of their competitors if you aren’t happy.
Why is auto insurance like that? Because your employer doesn’t provide you with auto insurance. The government doesn’t provide you with auto insurance. You have to have it... and so a number of companies are out there, competing for your business.
Imagine if that applied to health care. Imagine if there were a number of health care companies competing for your business on an individual level. Imagine health care providers competing on price. Imagine calling your health insurance company and not having to wait on hold forever... or imagine billing issues that don’t require an advanced degree. Imagine a health care system where everyone who wanted it could get health care... and it followed you. Imagine if you didn’t like your plan you could switch to another provider who was eager for your business.
Want to know how to do it? It’s simple, and it is so much better than socialism.
Prevent the government from offering health care coverage to government employees. Close tax incentives and prevent companies from providing health care coverage to their employees. Require that all people have to find their health care coverage on the open market. If that is a reality, they will compete for your individual policy, rates will fall, and service levels will increase.
It really is that simple.
But, it will never happen.
There is too much money in the health care lobby. People are conditioned to believe that they can't afford health care on their own, the employer must provide it. Congress will never give up their sweet health care package. And people will never admit that paying for it themselves would be cheaper. And liberals and much of the rest of the government won't allow it. If you take their social programs away from them, then they lose power. They lose something to hold over your head to entice you for your votes.
So the people will keep becoming more and more dependent on the federal government and our capitalist republic will become more and more like a socialist experiment. Social Security is screwed up... but the people are too dependent on it and too scared to make a change. The IRS and tax law is screwed up... but the government is too dependent on it and so are countless lobbyists. The education system is a bloated mess... but see how far you get criticizing it. And the health care system too needs reform... and so the government wants to create yet another social program instead of taking the necessary reforms to fix it.
Any time a government makes you more dependent on it, it is doing you a disservice. Bar none. Socialized health care is certainly no exception. All it will serve to do is give more powers to the government and take your freedom and ability to choose away. Want to fix it... make it truly compete on an open market. I promise... it is that simple.
