Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
4Activity
0 of .
Results for:
No results containing your search query
P. 1
1989 Assuring Affordable Health Care for All Americans

1989 Assuring Affordable Health Care for All Americans

Ratings: (0)|Views: 23,148 |Likes:
Published by annawitkowski88

More info:

Published by: annawitkowski88 on Jul 02, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

05/13/2014

pdf

text

original

 
218
Assurin_gAffordableHealthCarefor
All
Americans
ByStuartM.Butler,Ph.D.
 
TheHeritageFoundationwasestablishedin1973asanonpartisan,tax-exemptpolicyresearchinstitutededicatedtotheprinciplesoffreecompetitiveenterprise,limitedgovernment,individualliberty,andstrongnationaldefense.TheFoundation'sresearchandstudyprogramsaredesignedtomakethevoicesofresponsibleconservatismheardinWashington,D.C.,throughouttheUnitedStates,andinthecapitalsoftheworld.Heritagepublishesitsresearchinavarietyofformatsforthebenefitofpolicymakers;thecommunicationsmedia;theacademic,business,andfinancialcommunities;andthepublicatlarge.OverthepastfiveyearsaloneTheHeritageFoundationhaspublishedsome1,5OObooks,monographs,andstudies,ranginginsizefromthe927-pagegovernmentblueprint,
MandateforLeadershipIll:PolicyStrategiesforthe1990's,
tothemorefrequent"CriticalIssues"monographsandthetopical"Backgrounders,""IssueBulletins,"and"TalkingPoints"papers.Heritage'sotherregularpublicationsincludethe
SDIReport,Business/EducationInsider,MexicoWatch,
and
PolicyReview,
aquarterlyjournalofanalysisandopinion.Inadditiontotheprintedword,Heritageregularlybringstogethernationalandinternationalopinionleadersandpolicymakerstodiscussissuesandideasinacontinuingseriesofseminars,lectures,debated,briefings,andconferences.HeritageisclassifiedasaSection501(c)(3)organizationundertheInternalRevenueCodeof1954,andisrecognizedasapubliclysupportedorganizationdescribedinSection509(a)(1)and170(b)(1)(A)(vi)oftheCode.Individuals,corporations,companies,associations,andfoundationsareeligibletosupporttheworkofTheHeritageFoundationthroughtax-deductiblegifts.
Note:NothingwrittenhereistobeconstruedasnecessarilyreflectingtheviewsofTheHeritageFoundationorasanattempttoaidorhinderthepassageofanybillbeforeCongress.
TheHeritageFoundation
214MassachusettsAvenue,N.E.Washington,D.C.20002-4999U.S.A.
202/546-4400
 
AssuringAffordableHealthCareforAllAmericans
by
Stuart
M.
Butler,
Ph.D.TheUnitedStatesspendsover11percentofitsgrossnationalproductonhealthcare.Thattranslatesintomorethan$2,000perpersoneachyear-morethanthepercapitaGNPofmanycountries.YetalthoughtheU.S.spendsfarmorethananyothercountryonhealthcare,therearegapingholesinthesystem'scoverage,andhealthcareservicesaregrippedbyrunawayinflation.
As
manyas37millionAmericanslackadequateinsuranceagainsthealthcarecost,andmanyotherswhohaveinsurancestilldreadthefinancialimpactofaseriousdisease.HowcanAmericabespendingsomuchonhealth,andyethaveasystemwithsomanyshortcomings?Thereasonisthatthesystemhasbeenbuiltuponunsoundfoundations.Eachtimewehavetriedtodealwithaparticularhealthcareneed,wehaveaddedonanewcomponentwithoutaddressingtheunderlyingproblems.Butwhenahouseisbuiltonbadfoundations,addingonextraroomsleadstocontinuousandexpensiverepairs-andthepossibilityofcollapse.PROBLEMSWITHTHEU.S.HEALTHSYSTEMTherearethreeseriousunderlyingproblemswiththecurrenthealthcaresystem.First,itactuallyinvitesrunawaycosts.Forhistoricalandtaxreasons,healthcarebenefitsareprovidedtomostAmericansthroughtheiremployers.Thesebenefitsaretax-freeincome,andmostemployeespaylittleornoneofthepremiumcostsoutofpocket,andtheyhavelittleknowledgeoftheactualcostsoftheservicestheyuse.Fortheworker,theseservicesareessentially"free,"andsoheorshehaslittlereluctancetodemandthem.Similarly,thehospitalsanddoctorswhoprovidehealthcareservicesknowthatthepatientwillpaylittleornoneofthecosts.Consequently,theyhavelittleincentivetoavoidprescribingcostlyprocedures,eveniftheseareofmarginalbenefit.Thenetresultisatendencyforpricesinthehealthcareareatoriseveryrapidlybecauseneitherprovidernorconsumerissensitivetocost.Consumersnotcoveredbytax-freeemployerplans,ontheotherhand,generallyhavetopayfortheirhealthcareinafter-taxdollars.Thusaself-employedperson,aworkerinasmallbusinessnotcoveredbyaplan,orthedependentofaworkernotincludedinacompanyplanfacesmuchhighercostsforthesameinsurancethansomeonecoveredbyacompanyplan.ThistaxdynamicwithintheinsuredhealthcaremarketalsopushesupcostsforallAmericans,insuredoruninsured,richorpoor.Thesecondproblemisthatthedirectandindirectassistanceprovidedbygovernmentdoesnotchannelthegreatesthelptothosewhoneeditmost.Thetaxcode,asmentioned,favorscompany-basedhealthplans.Thusindividualspurchasingtheirowninsurancefor
StuartM.Butler,Ph.D.isDirectorofDomesticPolicyStudiesatTheHeritageFoundation.HespokeonOctober
2,
1989,atMeharryMedicalCollege,Nashville,Tennessee,attheirconference,"HealthCareforthePoorandUnderserved."ISSN0272-1155.©1989byTheHeritageFoundation.

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->