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Old 08-31-2009, 09:44 PM
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Default Escalating Healthcare Costs Are Actually A "Tax"

Quote:
Originally Posted by gemorc View Post
...If you are willing to pay for "socialized medicine", it can be truly great. Are Americans willing to pay the taxes needed to support the health care reforms that are required to make the serious changes? I think not....
In my opinion, we probably shouldn't confuse tax rates with healthcare costs when deciding what kinds of reforms are needed. In 2007 (the latest year available), the U.S. spent almost 2-1/2 times the amount per capita for healthcare than did the U.K. The numbers were $5,711 for every man, woman and child in the U.S., compared to $2,317 in the U.K.

The point many are making is that we already are paying far more for our current system of healthcare than any of the citizens in countries with national healthcare are paying in taxes. Our costs are rising at a rate four times the rate of inflation and are projected to consume one-third of the entire GDP of the U.S. in just ten years. Obviously, that level of cost increases are unsustainable.

Whether we make payments in the form of insurance premiums or in taxes, Americans will still wind up with less disposable income unless we implement reforms to reduce the costs of healthcare. The scary development is that many citizens are "avoiding" the loss of disposable income by either voluntarily dropping health insurance or losing it because their employer can no longer afford it and stops offering the benefit. Either way, the health of Americans will continue to decline as out-of-pocket costs rise, unless something dramatic is done soon.

Maybe the way to think about it is...inaction by our government to institute reforms to substantially reduce healthcare costs will have the same effect as if they actually voted for an increase in tax rates. We will have less to spend after paying for our healthcare. And with lessened emphasis on prevention, we'll actually be less healthy.