'Employer' and 'health insurance' don't belong in same sentence

Cal Beverly’s editorial titled “Democrats healthcare = horror show for small business” unwittingly raises the most fundamental question of all – and one that isn’t even being asked.

That is, why should businesses – large or small – even be involved in providing health care benefits at all? This is the cornerstone of the U.S. system. Most of us accept this because it’s what we’ve always known. But can anyone explain what sense it makes?

Charles Krauthammer, the conservative columnist and frequent Obama critic, had an article in the AJC recently in which he agreed: “There is no logical reason to get health insurance through your employer. This entire system is an accident of World War II wage and price controls. It’s economically senseless. It makes people stay in jobs they hate, decreasing labor mobility and therefore overall productivity. And it needlessly increases the anxiety of losing your job by raising the additional specter of going bankrupt through illness.”

In other words, it’s a monumental drag on the economy and steals some of the personal freedom that is supposed to come with living in a free market system. Imagine how different your outlook would be if you could consider mid-career job changes or starting a new business without having to factor in how such a change would affect health insurance for you and your family. Imagine how much leaner and efficient businesses could be if they didn’t have to administer complicated benefits programs.

Krauthammer sees the solution as a totally open market for health insurance, with current tax exemptions for employers repealed. If that would work, I’m all for it. But personally I don’t think it would on either practical or moral grounds, because health care is a different animal than other types of insurance or services.

But the more health care is discussed, the more convinced I am that the employer-based model needs to go, one way or another. I’d be interested in other thoughts.

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bowser: employer insurance
Submitted by Bonkers on Sun, 08/09/2009 - 3:06pm.

Richer companies used it to attract those they wished to hire. Of course the poorer companies had to do something to compete for the talent they wanted. It wasn't always good just to raise salaries to keep people.

But it really became a necessity for the bread-winners when the costs of medical care became beyond any budget.
I do remember that a hospital room cost 10-12 dollars a day, a doctor visit 3 dollars and 5 dollars with a shot of penicillin.

One could finance a baby's birth with about 2-300 dollars.

Operations were from 100 dollars to 1500 dollars.

Specialists were people who worked on eyes, and organs.

It did take maybe a half day or maybe a day to see a doctor unless you went to the emergency room (50 bucks and 25 for the doctor). 3-4000 now.

Two doctors in an office generally had about 2, maybe 3 helpers total for the two.

You paid the bill and filed with your insurance company for the costs.
Doctors would wait for you to file and get the money. Bill you only if you hadn't paid anything in months.

They generally worked in an old house for low rent.
House calls were done if you could wait several hours and furnish the doc a bed for a couple of hours or until the hospital called.

It has become now a major industry. Just as have nail salons! (100 bucks a visit maybe). 50-150 at the hair place. 50-200 at the massage place and face place.

No working person would or could put away enough cash to pay for medical care now.

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