Originally Posted by
TFOGGER
As healthcare is a multibillion dollar industry, I would think the 2 are inextricably linked. Taxes and tax analogs, such as a mandatory universal healthcare payment, universally act as a damper on economic growth.
Hypothetically, Joe Paycheck earns $40k a year, less 30%ish for income taxes, FICA, etc. This leaves him about $31,500 to pay for his day to day expenses, including healthcare. Now let's say Joe has a pretty decent health plan that covers him, Mrs Paycheck, and Jr. Paycheck, and this costs him $750 a month. That takes $9000 of his income, but it provides good quality coverage. Start adding in his mortgage, a car payment, and living expenses, and Joe basically comes out even at the end of the month. Not getting rich, but living the dream.
Now universal healthcare comes along. Joe's employer is faced with a dilemma: reduce the workforce by a number of workers to cover the cost of providing healthcare, or asking his employees to take a pay cut of $9k per year to cover it. Now that $9k is going to not only cover Joe and his family, but his neighbor Tom Slacker's family as well.
Suddenly, the same amount of money is supposed to provide coverage for twice as many people. Either the cost of care must be reduced %50 somehow, or the quality of care will be degraded. Now I'll be the first to agree that the current system is horribly bloated and wasteful, particularly at the administrative levels, but to believe you can provide quality care for half the cost is naive at best.
Now say that Joe's employer takes the other tack, and decides to axe 10% of his work force to cover the cost instead. Now you have more people out of work, but still covered by the system.
I absolutely agree that insurance companies need to have incentives other than profit, as profit implies a certain level of acceptable loss.
I ask the following: If universal health care is the answer, why do people from France, England, and Canada come to the US for treatment if they can afford it?