Re:Smart move (Score 1)

First, I wouldn't be so bold as to say that paying for everything is THE problem with health insurance. If you break down the costs, there are several factors that make us more expensive than other countries. First is the percentage going to doctors is much higher than in other countries - our physicians are paid very well. Partly this is due to unnecessary procedures, part of it is high malpractice insurance passed on, and part is just high fees. If you cut out the unnecessary procedures you will start eliminating this cost.

The next problem is the administrative cost of the private health insurers. They are not more efficient than the government (Medicare costs 1/5-1/3 the amount to run as private insurers). Why is this? The private insurers are trying to maximize profit, not minimize cost. They've created a behemoth of red tape and paperwork designed to deny more claims and make up for the cost of the system with more denied claims. It works for their purpose, but it is driving our costs through the roof. The government can be very efficient and Medicare is a good example. The thought that the government is always inefficient is a fallacy.

The problem with health care is that it is different from other insurance. You don't need a car, vacation, computer, etc. to survive, but you sure need your body. Hospitals are required to help anyone, regardless of ability to pay. In some way or another they are going to have to cover the costs for those people. They can either charge everyone else more at the point of service or everyone can pay more to the government in taxes to subsidize them. Either way, we all end up paying for it. The problem for low income people is that they really don't make enough to afford health care. So do you want to just let them die? That won't happen, and if we want to fix the problem for good we will need to provide coverage for those that cannot afford it. In the end, paying the hospital for treating these people will uncover the real costs so they can be controlled better than burying them in the treatment of the rest of us will.

There are many systems in the western world that are not socialized - take Switzerland for example. Private insurers provide coverage and everyone is required to buy insurance, the poor are subsidized. The insurers cannot profit from basic insurance, but must provide basic insurance in order to have the right to provide supplemental insurance (I think ~30% have this). The incentives in the system are set up to let the capitalist motive push for efficiency since they cannot profit from the basic care. Watch the Frontline documentary "Sick Around the World" to get a better idea of how other countries operate and how our system can transform into one of them. The socialized systems are too far from what we have now and the Swiss system would be a much better fit for our political climate.