US Healthcare leadership—an oxymoron (part 1)
by Miki Saxon
Healthcare is on everybody’s mind these days. In a recent conversation I had with KG Charles-Harris, CEO of startup Emanio, we touched on the possibility of a tax increase on business to fund health care.
KG said, “It’s clear that the US healthcare situation needs to be improved. However, there are so many different views as to how we may improve healthcare, that the HOW question is completely open. Is increasing taxes the best way of doing it? Or is reforming the system better? America is a great country and we must as a great country do what’s necessary for our people. However, I am unsure that increasing taxes is the best way of doing this.”
In his column, Paul Krugman credits John Edwards for “introducing bold policy proposals — and they were met with such enthusiasm among Democrats that his rivals were more or less forced to follow suit…Edwards plan…giving people the choice of staying with private insurers, while also giving everyone the option of buying into government-offered, Medicare-type plans — a form of public-private competition…”
For the rest of this week (or longer) I’m going to post commentary from business people I know. I asked this question, “Should the US increase taxes on businesses in order to provide universal health care for its citizens as other countries have done?”
I suggested that they look at the question broadly—not just the tax issue—and from whatever prospective they chose.
I’m hoping that you will weigh in also. If you feel your response is more a full post than a comment email it to me along with a short introduction and I’ll give it post status—as long as it’s not just a blatant political statement.
Is healthcare an important issue to you?
Your comments—priceless
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February 11th, 2008 at 2:25 pm
[…] Saxon has written a good post about this on her Leadership Turn blog. She is going to be posting comments from business people and people in the health […]
February 11th, 2008 at 4:02 pm
[…] Saxon has written a good post about this on her Leadership Turn blog. She is going to be posting comments from business people and people in the health […]
February 11th, 2008 at 4:30 pm
Miki- like KG, am very reticent to fund medical care with my tax dollars. I’m not sure what the answer is but I think I know what could help: competition. You already see it happening with dental care- fewer people, like myself, are paying for dental insurance and instead cutting deals with their dentists, using discount schemes, and shopping around more. It’s easier to introduce competition into the dental care situation because their are fewer services and the economics of the situation are more obvious. Medical insurance introduces a buffer that blurs the information needed to shop around, allowing the medical industry to jack up prices faster. Introducing a government layer could make it worse. I wish I knew a good way to introduce competition AND information into the system that would drive prices down. I think John Stossel did a TV program on this last year- here is a link to one column he wrote http://www.realclearpolitics.com/articles/2007/08/another_bogus_report_card_fo1.html.
February 11th, 2008 at 4:48 pm
I think that one way of keeping healthcare costs down is to ask private & government providers of healthcare insurance to revisit their pricing policies.
Pricing of insurance is based on potential payouts. The advances in medicine, the herbal movement, the greater awareness for wellness and prevention rather than hospitalization –all these should be bringing down the potential payouts and, correspondingly, the premiums (i.e., costs) of healthcare insurance.
A greater portion of payouts would be for dreaded diseases and elder care –which are ordinarily exclusions in the coverage or with caps.
Thus –The advances in medicine, the herbal movement, the greater awareness for wellness and prevention rather than hospitalization– should logically bring down the payouts and the premiums which are based on the potential payouts.
February 11th, 2008 at 11:23 pm
Sorry, Bob, but for those of us with NO insurance shopping around and trying to cut deals as an individual doesn’t work well. Additionally, the level of knowledge and understanding required is well beyond most people. Those who would benefit most are those with the education and income who are most likely already insured. I’m fortunate and enjoy excellent health, so my need for insurance would probably involve some kind of emergency and I doubt that I’d be in a position to negotiate. As to the dental, where I live it’s non-negotiable. I know, I tried.
February 11th, 2008 at 11:31 pm
Ren, I don’t disagree with you, but the advances you’re describing will be a long time coming. It goes back to who is focused on prevention and again, as I said to Bob, that’s the better educated, higher income crowd. Part of preventative involves healthy eating and, contrary to popular opinion, healthy eating costs more and it’s finally been proved.
Beyond that, you have far more faith in the idea that any savings in healthcare costs will come back to the consumer as opposed to the bottom line of the insurance companies and others.
February 12th, 2008 at 5:28 am
Romney (before he started pandering to the crazies) introduced a very good universal healthcare plan in Mass. when he was governor. It made use of private insurance and competition was maintained, but it also included sliding co-pays based on income and coverage for those who could not afford insurance. A great model. Too bad he’s decamped from that lately.
As for raising taxes…well, for what we spend on funding foreign militaries, starting un-needed wars, giving tax breaks to major corps (Big Oil and Big Ag — not to mention the unnecessary subsidies these profitable businesses get) and the ridiculous waste from pork barrel spending, we could easily fund a universal healthcare program without raising taxes.
Something to think about: In Britain doctors get bonuses when their patients lower their cholesterol, quit smoking and get preventative tests. Note that in the U.S. doctors get bonuses from insurance companies for denying services and tests to people who probably need them…
February 12th, 2008 at 10:14 am
Miranda, Healthcare could probably be funded from the pork barrel alone:)
But how dare we expect our poor, belabored politicians to stand up to entrenched corporate interests and the need for re-election. It’s terribly inconsiderate of us, don’t ya think?
February 12th, 2008 at 10:17 am
Indeed. What was I thinking?
I have wondered how quickly healthcare would change if career politicians were required to have the same healthcare as the rest of us…
February 12th, 2008 at 10:47 am
Miranda, Good point and I can even answer it. Healthcare would change as fast as Social Security would if politicians didn’t have their own pension plan.