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Politics : A US National Health Care System?

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To: Lane3 who wrote (12323)12/16/2009 8:14:43 AM
From: Lane31 Recommendation  Read Replies (2) of 42652
 
2) Health care

The private marketplace had developed a promising, cost-efficient means of delivering healthcare: the health maintenance organization. Thanks to the spread of HMOs, health care costs grew more slowly in the 1990s than any decade since World War II.

Because health care costs are paid out of employee wages, slowing those costs boosted worker pay. Thanks in large part to the slowdown of health cost inflation, worker incomes grew faster in the 1990s than in any decade since the 1960s.

But the HMOs had their faults and kinks. Instead of defending and improving the HMO system, demagogic state and federal politicians waged war on HMOs, imposing strict mandates on them that forced up their costs. And they persuaded employers to revert to more traditional and expensive fee-for-service medicine.

The main result: Costs exploded upward again in the 2000s. The average cost of a health policy for a family of four doubled between 2000 and 2006, from about $6,000 to about $13,000.

A secondary result: Wage growth stopped. The typical earner actually brought home less after inflation in 2006 than in 2000.

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