At the present time, employees and union members want very fat health care insurance coverage, because that is income for them on which they do not have to pay taxes. If they were taxed on the cost of their employer-purchased health insurance, they would quit using the employer-purchased option and begin buying their own insurance from private insurers. They would buy catastrophic insurance that had a large co-pay, e.g., $2500 per year. That would encourage them to shop around for lower cost medical services.
This system would help the employer who is struggling to keep up with escalating health insurance costs; and it would keep medical care costs down by creating competition among health care providers.
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I like your idea. Anything to help the small business owner, and not penalize them would be helpful. Do we really want China to make everything because it is too expensive to make it here?
ReplyDeleteHaving to pay a set fraction for care would also encourage people to avoid care that isn't useful.
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