Calculating the Benefit of Our Present Healthcare

by Dollars and Sense

Many people aready know much of this, but these are points that deserve to be hammered into our heads these days. Here's the essential point:

Let's start with value. Most Americans are blissfully unaware that their healthcare system provides appallingly little value for their money. This is because when it comes to costs, they see only the tip of the iceberg. While companies typically pay about three-quarters of an employee's family premium--on average $12,680 a year--individuals ultimately bear the burden. In a free market, companies do not hand over to their workers more than they absolutely have to. Money spent on healthcare is carved out of take-home pay or other benefits.

"We pay for healthcare in considerably lower salaries," Uwe Reinhardt, a Princeton University economics professor, said in a telephone interview. "The system seduces people into thinking care is pretty cheap. We are kidding ourselves if we think that the shareholder pays."

Oh, and lest we forget, "The foundation estimates that without reform, the cost of premiums could double again by 2020--gobbling up still more take home pay."
From Reuters:

13:49 August 26th, 2009
The mirage of U.S. healthcare
Posted by: Christopher Swann

On healthcare, the White House is struggling with a political riptide that threatens to drag it into deep water.

Americans, as they contemplate change, have suffered a weakness of nerve. The main reason is that nearly two thirds of Americans are apparently happy with their healthcare coverage, for all its deficiencies. Repeated reassurances from President Obama that those who like the existing set-up will not be forced to change, have had little effect.

A change of tactics may be in order. The administration must do a better job of underlining the glaring defects of the existing system. The genius of the U.S. healthcare is in providing the illusion of value and security. For their own sake, Americans must be encouraged to set aside jingoistic claims about having the best care system in the world and look more honestly at its short-comings.

Read the rest of the article

Labels: health care, health care reform, insurance industry, wages

 

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8/29/2009 11:52:00 AM