Becky Quick, co-anchor on CNBC’s Squawk Box this morning discussed health care and politics with Susan Devore, President, and CEO of Premier Inc., a leading healthcare improvement company. The discussion centered around “Obamacare.” Premiums for coverage under Obamacare have gone up 25-35%.
The idea of health insurance is that the medical expenses of people requiring treatment are paid for by an insured population of primarily healthy policyholders. What makes “Obamacare” different is that many people who are currently buying this coverage already have health problems or are anticipating large medical costs in the near future.
It is true that there is a penalty enforced by the IRS for those who choose to remain uninsured but, clearly, most people decide they would rather pay an annual penalty than monthly premiums. It is not that they are being irresponsible but that they simply cannot afford the coverage and still pay their monthly bills.
It looks as though, whoever our next President is, “Obamacare” as it is today will need major overhauling. Single-payer national health insurance, also known as “Medicare for all,” is a system in which a single public or quasi-public agency organizes health care financing, but the delivery of care remains largely in private hands and is part of your tax bill.
Canada and the U.K. are on this system and it is tried and tested and has been working for a considerable period of time. This is a more likely solution than the current arrangements, although this system is not without its own shortcomings.