Monday, June 08, 2009

Health care - really a question of winners and losers

One of the objections that conservatives (Republicans and Democrats) have against government health care insurance is "it could force many private insurers out of business." - "GOP senators warn Obama on health care", Yahoo Finance, 2009-06-08

But, the current health care system is already forcing some companies out of business. Was it Waggoner of GM who said he started out making automobiles but wound up running a health care insurance business?

Not only are many companies at a competitive disadvantage to companies in countries with extensive government sponsored health care, many companies aren't started because of health care. First, many people don't go off on their own because they don't want to "lose benefits". Second, if are willing to go off on their own, they are wary of the need to provide benefits, a drain on their cash flow and on their time.

Another complaint against government health care has been the cost. Most critics talk as that is an additional cost to Americans that they didn't have before. The real question is how much will the costs be offset by other savings - existing insurance premiums, the cost in goods and services due to health care costs for employees, and the cost of uninsured going to emergency rooms. Does anybody even know if the savings could be even greater than the cost?