We Must End Gov’t Bias Towards Employer-Provided Health Coverage
While I heartily agree that more Americans should be purchasing their own health insurance [which would mean that salaries would go up as employers loosened the reins on health insurance], the problem with any kind of purchase of health insurance is that the policies are larded up with pointless mandates that the government requires that insurance companies carry—which means that the cost is unsustainably high no matter who buys it.
There’s more over at Red State:
The liberal cycle of statism, at its core, originates from a government-induced problem. When nobody is paying attention to an issue, liberals swoop in and impose a pernicious regulation or mandate on a private industry. That regulation lays dormant for a number of years like a ticking time bomb. Then, many years later, it blows up the industry. Liberals summarily swoop in to accuse private enterprise of raising costs on the poor, and demand that their “solutions” be enacted.
Nowhere is this cycle more evident than with the health insurance industry. During the 40s, Congress imposed wage controls on private employers, limiting the pay raises that could be doled out to employees. This destructive and unconstitutional act led employers to look for other means of compensation to attract talent and reward productive employees. This gave rise to the tax exemption for employer-provided health insurance officially created in 1954.
In short order, most employers began paying for the health insurance of their workers. This in turn distorted the market and tilted the playing field away from the individual. It also dramatically spiked the cost of health insurance by providing too much coverage and generating artificially increased demand. This system also shielded consumers from the real cost of the coverage. Hence, we are now stuck with a situation where those who don’t enjoy employer-provided coverage are holding the bag of higher costs – all brought to you by government’s infringement on the free market.
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