A Rational Health Care Prescription

There is an urgent need to address health care issues in the US. Unchecked health care spending is on the rise. The citizens of the US are given information which indicates that it is the problem of the uninsured people that is of paramount importance as there are about 47 million uninsured today. But it is the ramifications of uncontrolled spending, which are either lost on the politicians or they choose to turn the other way, which sparks the most debate as an increase in spending on health care generates politically rewarding benefit.

Politicians cater to the belief that everyone must get what they require but this approach shows an out of sight abdication of political responsibility. The fact remains that due to unrestricted rise in health spending, the national priorities are getting affected. Statistics from the Congressional budget Office indicate that health spending is about 16% of the GDP and by year 2030 it could easily touch 25%. The private sector and the Government has not been able to control health spending. This can be seen in figures from 1970 to 2005 where there was an 8.9% increase per year per Medicare beneficiary. On the other hand, spending rose by 9.8% in the same period for those with private health insurance.

Some of the suggestions are on the lines of having a committed federal health tax where all government spending like Medicare and Medicaid etc, is covered which means that if health spending increases then tax will also show an increase. Medicare beneficiaries should be made to pay more and last but not the least, the income tax exclusion for insurance paid by employers should be replaced with a lesser value tax credit.

It is evident that at present the politics behind health care indicates that the aim is to mask the costs and twist choices. Any discussion on this topic will not result in much unless there is an overhauling of the situation.