Wednesday, October 14, 2009

Messed Up Health Care

1954 was a bad year for our health care system. That was the year that corporations were granted the right to deduct health care expenses and employees were allowed to receive the benefits income tax free. The cost of health care has been on the high road ever since, aided and abetted by the start-up of medicare in 1965.

Even before these events, Congress exempted insurance companies from antitrust laws in 1945. Instead of fixing the problem, legislators would like to add layers of additional complications, because that is the way to collect campaign contributions from special interest.

We have a messed up health care system because decisions are being made for political reasons. The good news is that limits have been reached. The results could be no bill because the pending health care bills will either cause massive increases in taxes or government rationing of care. Theoretically, democrats can pass whatever they want but what the unions, insurance companies, senate and house want are all different things. Representatives from rural states want something very different than representatives from urban states. Democrats need a consensus among themselves.

The treat of ending the insurance antitrust rules will increase the flow of funds into campaign war chest but threatening and acting are two different things. It is going to be interesting to see the Harry Reid version of health care reform. One slip and democrats will lose plenty of seats.

in reference to: End to insurers' antitrust exemption proposed - MarketWatch (view on Google Sidewiki)

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