Health Care

Most people sympathize with the concept that everyone should be able to receive health care. It sort of aligns with Christian concerns of taking care of the sick, like the good Samaritan. However, while the good Samaritan paid for the care of the man voluntarily out his own pocket, and therefore even the expert in the law considered him a true neighbor (Luke 10:25-37), many people think the government wants to pick our pockets to pay for the massive government program being put forth to achieve this result.

Is that true? President Obama says it is not. He claims his plan will not raise the already record-breaking deficit, nor require any new taxes, because it will be all paid by savings he will find in the Medicare and Medicaid government programs. This claim alone has seniors alarmed worried that the proposed savings will come at the expense of health care benefits already available to them. Since President Obama proposed the elimination of Medicare Advantage, a Medicare supplemental paid for by the government for poor seniors - administered by private companies - the fears of seniors have only escalated. When Humana sent out letters informing their clients about this proposal, and the impact it might have, the government threatened them, about as close to a case of censorship we have had for years.

The CBO (Congressional Budget Office), charged with impartially assessing such plans, has announced that the health plan proposals will cost a lot more than claimed in the President's proposals or the plans proposed by the Democrats in Congress, and will add a lot more to the deficit. Therefore, the President will have to raise taxes in order to attempt to make his proposal deficit neutral, which he has pledged, while at the same time pledging not to raise taxes on those making $250,000 or less. The CBO announcements has likely been the most important factor in the poll numbers showing growing opposition to the proposals on the part of the people. In the meantime, President Obama proposes a penalty for anyone who does not sign up for a health plan (something he was opposed to during his campaign), as well as fees for really good health care plans, but refuses to call this a tax, even when someone like George Stephanopoulos, a liberal, brings out a simple dictionary definition of taxes.

Meanwhile, other proposals to reform health care go largely ignored. For years, the government has allowed a tax deduction for health plans offered by employers, but unfairly prevented a similar deduction for plans purchased by individuals as well as the self-employed. This government policy has distorted the private market. Most individuals have no idea of what health care actually costs. They only know what their contribution is after their employer pays their share of the health care plan they have. The employee doesn't realize they are really paying for the cost that their employers pay, since the employers reduces their wages to account for what they are paying in health care benefits. The employer chooses the plan, not the employee, though sometimes they are given a choice of plans the employer pre-selects. The plans usually selected by the employer have very low or no deductibles, at a high cost to the employer, resulting in a lower wage for the employee. When the employee goes to the doctor or the hospital, they often have no idea of the cost, nor do they care because it is covered under their plan.

A better plan would be to give a deduction, or better, a tax credit, directly to individuals to choose their own plans. That way, consumers would be in charge of deciding which health care plans to purchase, along with a choice about deductibles, as well as when coverage would kick in. Direct consumer involvement historically has been the best vehicle to driving down costs as providers of goods and services compete for their business. The current system keeps consumers in the dark about not only the cost of their health care plans, and ultimately about the cost of their health care itself. Under this system, it is not surprising that health care costs continue rising.