Tuesday, March 10, 2009

More on Health Care Reform

taken from http://www.verticalpoliticsinstitute.com/index.cfm?Fuseaction=Issues.View&Issue_id=9d92b651-cfcc-4a4a-83c3-b43aea91fc11

THE BIG PICTURE
The health care system in this country is irrevocably broken, in part because it is only a "health care" system, not a "health" system. We do not need universal health care mandated by federal edict or funded through ever-higher taxes. We do need to get serious about preventive health care instead of chasing more and more dollars to treat chronic disease, which currently gobbles up 80% of our health care costs, and yet is often avoidable. The result is that we'll be able to deliver better care where and when it's needed.
We must advocate policies that will encourage the private sector to seek innovative ways to bring down costs and improve the free market for health care services. We have to change a system that happily pays $30,000 for a diabetic to have his foot amputated, but won't pay for the shoes that would save his foot.
WHAT WE CAN DO
We can make health care more affordable by reforming medical liability; adopting electronic record keeping; making health insurance more portable from one job to another; expanding health savings accounts to everyone, not just those with high deductibles; and making health insurance tax deductible for individuals and families as it now is for businesses. Low income families should get tax credits instead of deductions. We don't need all the government controls that would inevitably come with universal health care. Americans must have more control of their health care options, not less.
We need to utilize the states as laboratories for new market-based approaches, and our next President should encourage those efforts. He should work with the private sector, Congress, health care providers, and other concerned parties to lead a complete overhaul of our health care system, not more of the same, paid for by Uncle Sam at the expense of hard-working families.
Health care spending is now about $2 trillion a year, which is close to $7,000 for each one of us. It consumes about 17% of our gross domestic product, easily surpassing the few European nations where spending is close to 10% and far higher than any other country in the world. If we reduced our out-of-control health care costs from 17% to 11%, we'd save $700 billion a year, which is about twice our annual national deficit.
Our health care system is making our businesses non-competitive in the global economy. General Motors spends more on health care than it does on steel, $1,500 per car. Starbucks spends more on health care than it does on coffee beans. We have an employer-based system from the 1940's, a system devised not because it was the best way to provide health care, but as a way around World War II wage-and-price controls. Costs have skyrocketed because the party paying for the health care - the employer - and the party using the health care - the employee - are not the same. It is human nature to consume more of something that is essentially free.
Workers complain that their wages are stagnant, but businesses reply that their total compensation costs are rising significantly because they are paying so much more for health care. Health care costs are adversely affecting your paycheck, even if you're healthy. Some Americans are afraid to change jobs or start their own businesses because they're afraid of losing their health insurance. It is time to recognize that jobs don't need health insurance, people do, and to ease the burden on our businesses. Our employer-based system has outlived its usefulness, but the answer is a consumer-based system, not socialized medicine.

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