Did you know personal health insurance acquired its dominance in the American economy only right after Planet War II?
As a end result of the government’s wage and price controls, imposed throughout the war to avert inflation in a tight labor market place, businesses were permitted to supply their employees a well being advantage in lieu of wage increases.
I remember in my lifetime when health insurance was synonymous with catastrophic coverage, bought — if you could afford it — to insure towards “big-ticket” items this kind of as polio or cancer. Otherwise, you paid your provider directly.
The industry’s hold on the economy today depends on a new government policy — the insurance coverage mandate — imposing health insurers into our well being care technique as middle men.
Wellness insurance coverage, like any other insurance solution, is practically nothing more than a managed financial chance pool. Based mostly on actuarial expertise, policyholder premiums will exceed claims which creates profit, after administrative expenditures, for shareholders or mutual members. This instrument can neither add to nor increase healthcare services. It is a middle man’s device for revenue, and it is costing Americans practically double what the rest of the industrialized nations spend for their well being care.
Tax, not premiums, is the way to go if you want universal overall health care in this country.
Remove this middle man from our overall health care technique, and considerably of the Reasonably priced Care Act goes away.
In the meantime, I’m placing blame for the mounting paperwork, bureaucratic entanglement and growing price to well being care where it belongs — on the personal, for-profit well being insurers whose growing economic stake in our economic system is driving politicians away from genuine well being care reform.