Saturday, October 17, 2009

Why Not Simple?

From a discussion of "Cadillac health plans" likely to be taxed under one health financing bill:
But many not-so-fancy plans also qualify as "Cadillacs" under the finance committee's definition. That's because the term refers to total cost—not a particular set of benefits—and many factors—like the state you live in, the size of your company, and the makeup of that company's work force—can affect costs. Premiums tend to be significantly higher in Massachusetts than in Idaho, for example. (The employer/employee contribution also varies by state.) The smaller the business, the fewer employees who go into the pool, the less leverage the organization has to negotiate lower premiums. And if the workers have an average age of, say, 54, their premiums are going to be a lot higher than if the average is 25.

This is only one example of the mind-numbing complexity of the private insurance model for health care finance. Remember, the time and energy that goes into tracking and understanding the details is effort to not spent on health care.

A single payer system would not need to do this.

Think Occam's Razor.



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