- Cost- which has obviously been soaring over the past decade
- Coverage-we currently have 50 million people uninsured in the US, is this acceptable?
- Quality-what is the best way to look at the quality of care in the US versus the world?
Unfortunately, I believe, this savings may come at the expense of coverage and/or quality. I say this because current ideas being thrown around include limiting medicare benefits to increases only at the level of general inflation (2-3%) as opposed to the much high inflation of medical costs (double this level). This means that every year the net benefit of insurance will decrease by this 3%+ gap. Also, there is talk of moving Medicare to a program less like a pension (where the government centralizes the contributions and expenses of the population) and more like a 401k (individuals have more say on what coverage they want to pay for). The main problems with this are the fact that individuals have a horrible track record with 401k-type investments, they routinely contribute too little and have a hard time planning for adverse events. Also, when it comes to health care, people may not put enough value into their own health risks which would lead to future burdens being place on the government anyways. For example, if I decide that I don't want to spend money on cancer insurance and reduce my contributions for this service, would the government eventually be left on the hook for my medical costs if I was terminally ill with cancer? Or would the hospitals/doctors simply refuse my service and let me die?
For much more insightful analysis on this debate, please follow this link.
http://theincidentaleconomist.com/
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