Why shouldn't health insurance be free? (2024)

Why shouldn't health insurance be free?

Beyond individual and federal costs, other common arguments against universal healthcare include the potential for general system inefficiency, including lengthy wait-times for patients and a hampering of medical entrepreneurship and innovation [3,12,15,16].

From an individualistic perspective, the greatest argument against universal healthcare might be that each individual would likely lose a degree of choice. Under privatized care, individuals can choose their health insurance from different plans that fit their needs.

uninsurance has been attributed to a number of factors, including rising health care costs, the economic downturn, an erosion of employer-based insurance, and public program cutbacks. Developing effective strategies for reducing uninsurance requires understanding why people lack insurance coverage.

Disadvantages of private health insurance

Many individual policies can cost several hundred dollars a month, and family coverage can be even higher. And even the more comprehensive policies come with deductibles and copays that insureds must meet before their coverage kicks in.

(The Center Square) – A bill requiring California to take steps towards clearing regulatory hurdles for a universal government healthcare system now heads to the governor's desk for approval. Such a system would, according to analysis from the Tax Foundation, increase state taxes by over $12,000 per household.

Households' health insurance premiums would be eliminated, and their out-of-pocket (OOP) health care costs would decline. Administrative expenses in the health care sector would decline, freeing up productive resources for other sectors and ultimately increasing economywide productivity.

Universal health care would increase wait times for basic care and make Americans' health worse. The Congressional Budget Office explains, “A single-payer system with little cost sharing for medical services would lead to increased demand for care in the United…

It's no surprise that every country with some form of universal healthcare is statistically happier than the United States. Health insurance was originally created to save patients from the economic impact of illness. Access to primary, preventative care would improve under universal healthcare.

In many households, health care costs take up so much of monthly budgets that they affect the ability of people to pay for other living expenses. And the reverse can also be true: when the cost of other living expenses rises, it can affect families' ability to pay for their health care.

Is it better to pay for health insurance?

Health insurance protects you from unexpected, high medical costs. You pay less for covered in-network health care, even before you meet your deductible.

The complexity of the U.S. healthcare system can lead to administrative waste in the insurance and provider payment systems. The consolidation of hospitals can lead to a lack of competition or even a monopoly, granting providers the opportunity to increase prices.

Healthcare system complexity

This complexity often results in administrative inefficiencies, increased paperwork, and higher operational costs for both healthcare providers and insurers. These added expenses are eventually passed on to consumers in the form of higher insurance premiums, deductibles, and copayments.

Faster Access to Care

Having private health insurance can also offer fast access to medical care, with reduced wait times for appointments and procedures. This allows individuals to receive prompt treatment, minimizing potential risks associated with delayed medical attention.

I exact tax credits — we enacted tax credits to save an average of $800 per person per year, reducing healthcare premiums for millions of working families whose coverage — who have coverage under the Affordable Care Act. Those tax credits, though, expire. You can only get it for — through this year.

If your health plan is employer-sponsored, you'll be able to pay for premiums on a pre-tax basis, saving you money on income and payroll taxes. If you purchase your own individual plan, you'll have more flexibility but will pay more taxes.

A California single-payer plan doubles down on this issue because it would eliminate virtually all incentives for consumers to control costs. No co-pays and no deductibles mean increased demand for virtually all healthcare, and extraordinary rationing of healthcare.

A single-payer system abrogates the freedom individuals have to pursue health care coverage of their choosing. Single-payer health care does not equate to free health care, and the exorbitant taxes and costs associated with this system will systemically eradicate new jobs while driving out existing industries.

What would happen if Medicare was free?

“Under Medicare for All, we would have only a single entity — in this case, the federal government — paying for healthcare,” said Keith. “This would largely eliminate the role of private health insurance companies and employers in providing health insurance and paying for healthcare.”

Economic benefits of a single-payer health system

Implementing universal coverage through a single-payer system is projected to reduce health spending in the state by $37.5 billion annually, from the present $368.5 billion down to $331 billion.

Higher out-of-pocket costs might become expensive, especially if you use healthcare services often. They might also be a financial burden if you have a medical emergency or receive an unexpected diagnosis.

Universal access to health care, without discrimination, is a human right enshrined in the Universal Declaration of Human Rights and the International Covenant on Economic, Social and Cultural Rights.

Universal health care, it was estimated, could have saved 212,000 lives in 2020 alone. Today, however, market-based US health care continues to be a global flagship for the neoliberal economic model and its entrenched inequities. The tentacles of economic neoliberalism reach deep into health systems around the world.