Yale's Rant on Universal Health Care




Universal Health Care for all makes sense!

The only way a Universal Health plan can be properly implemented (especially to provide coverage for pre-existing conditions) is if everyone is covered and paid for.

Think about it. If pre-existing coverage is always available but coverage is not enforced, no one would carry insurance until they needed it. But insurance only works because the cost is spread over a large number of people, many of whom never need coverage or only use it occasionally, like automobile insurance.

The Affordable Care Act tried to keep insurance companies as part of the system. But that was ludicrous and it lead to absurd consequences, such as making penalties for anyone who didn't voluntarily join.

The simple truth is this. If the system requires that everyone participates, then it should simply be paid for by taxes. The increase in taxes would be offset by eliminating the cost people are already paying for private medical insurance. In fact, the tax increase would probably be less than the current cost of medical insurance because the enormous corporate profit would be removed.

Consider the enormous corporate profit from this simple example.
The cost of Medicare is $110 per person per month and it provides coverage for 80% of medical bills.
The cost of Supplemental Insurance is $257 per person per month. That's more than twice the price of Medicare. And it only provides coverage for 20% of the medical bills.
So, when you pay 2 times the cost for only 1/4 of the coverage, that means Supplemental Insurance is taking in 8 times the cost of medical expenses. And the difference is ALL PROFIT.

While most of the Medical Insurance industry would no longer be needed, many of their employees would be hired to support the additional work force that Medicare would need. And the Medical Insurance industry would not be entirely eliminated. It could still provide supplemental insurance for people who are willing to pay for it.

By the way, every major country in the world has already implemented Universal Health Care. It's considered a Right, not a Privilege. And it's not a handout because it's paid for by income taxes.

Copyright Yale Schwartz, 2017

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