If we socialized health care wont a lot of people quit their job, and insurance companies go out of business?

Question

i think we all know people that work at places just for the bennefits. Also i doubt all insurance companies are as inherently evil as some seem to beleive.
My question is sense we would be loosing so much taxed income wouldn't that hurt the needed tax base to run healthcare.
I dont want to see political slurrs here if your smart enough to anwsere the question then just answere the question!!

Charity thanks for the hard work there.
david- i know most people have to work for money, but a lot of students and spouses work for bennie's

Answer 1

i like the premise of this question. i'm going to do my best to answer it--i only have theory to support my answers, i don't have enough empirical data to be conclusive.

first: it seems that any time you subsidize something, you're going to have a lot of cost incurred in that. it's a general rule that governments are not as efficient as private organizations. however, this case has a possibility to be different.

it won't maximize the total amount of money, that's for sure. but there could be a different goal in mind. perhaps you can be more effective by giving it to people likely to spend it?

a socialized healthcare system could in fact lead to more employment. i, for example, as a recent graduate? i won't even look at a job that doesn't supply benefits. unless it's going to offer me about $7k more a year? no way. if i were guaranteed health care, i could work more cheaply for my employer.

perhaps a national sales tax, eliminating the IRS, could offset the cost to healthcare? i don't have the data to back it up, but it would definitely reduce the overall cost of the government.

keep in mind that it seems pretty inefficient to have socialized healthcare. but we can't make empirical claims without having real evidence--yet.

Answer 2

While there are people who do keep their particular jobs for the benefits, usually it's not a case of they wouldn't work at all, they just might choose an industry where health care isn't generally provided. So, instead of working as an accountant, they may decide to open their own business or cook at a restaurant (an industry that does not generally offer health care to anyone except management.)
Employment provides a lot more than just health care, so the impact that it would have there would most likely be minimal.

The problem with insurance companies is not that they are evil so much as they are companies who are trying to profit just like any other company. So a medical procedure costs a little bit more so the insurers can get their piece of the pie. There's nothing wrong with a company trying to make money, but now we have an issue where already expensive medical attention costs a little bit more. The other problem is that even if you are insured, there's always something that they don't cover, regardless of how medically necessary, so if you happen to have something they don't cover you're screwed. Universal health care can help eliminate those gaps in coverage and drive down prices by eliminating bureaucracy.

I don't know if universal health care is the correct answer to our problems, but discussing the issue will help us improve on our current system at a minimum.

Answer 3

First, why would people quit their jobs? They still have to work to pay rent or a mortgage, buy food, clothing, etc.

Secondly, Some insurance companies would go out of, or be forced to change, their business. The ones that only offered health insurance would fold unless they adapted.

Third, you are only looking at one side of the coin. Right now I pay almost 20% of my gross per month for health coverage for my family. Under a national health care plan that is 20% I would save off the top. Also with a national health care plan there would no need for Medicare. The proposed benefits to be paid for Medicare alone for 2008 are $450 billion.

While the savings from Medicare and Medicaid alone may be able to run a national health care system many think that our Federal taxes would go up in order to pay for such a system. That is possible but any tax increase would be no where near the 20% I would be saving up front from paying for health care on my own. Why does a national health care system work so well for countries like Great Britian (the UK has had their national health care system in place since 1948)? Canada? France? b it somehow it wouldn't work here in the US.

Answer 4

I don't think most people would quit their jobs, but I'm sure a lot of insurance companies would go out of business. A few would survive, though, and in order to compete with the government's near monopoly on health care, they'd have to raise their rates through the roof. That would mean that unless you're very rich, you could not afford to purchase private health care, which would result in most people being practically forced into opting into the government's plan. So, if you didn't happen to like the government's plan, you'd be out of luck.

Answer 5

The biggest negative effect, in my opinion, would be the downward spiral of care in general.

Do to the lower reward aspect (controlling the amount of money a doctor makes, scientists make who develop medications, etc) we would have fewer of the brightest minds go into medicine. Eventually we would have fewer medical discoveries, less qualified doctors, etc.

On top of that, everyone with a runny nose would be at the clinic, clogging the lines for people to get the attention really needed. This is why people wait months to get care in Canada.

As for the insurance companies, depending on the socialized plan, there would be several effects. Most people don't realize it, but in canada, people need health insurance to pay for the costs of medicine, which are not covered by the gov't. If it were a completely socialized plan, expect or taxes to go to 70 percent of our income, and insurance companies to struggle.

Answer 6

Well for one...the gov. will get their money one way or another. Two you said that insurance companies aren't as inherently evil as some believe....well they are not evil....they just don't give a damn about anyone. They are a business plain and simple run by people that want profits. Lives are less important than money....if you don't realize that now, wait, you will! The insurance companies in this country are the biggest scam next to the government. They just do it legally

Answer 7

Yes, insurance companies would take a hit, but the cost of medical care would go down. What currently drives up the cost of medical care is the amount of indigant cases they have (i.e. patients who do not pay for services). With socialized healthcare, everyone would be covered. Medical insurance companies will have to diversify into investment and life insurance or other fields or they will die. It would ripple the economy in places, but in the end, the country will be better off. Taxable income would not go down, infact, it would increase. Without the need to pay for health care, companies would be able to offer more money to their employees as a substitute for benefits.

Answer 8

Yeah, lets care about health insurance companies who are screwing millions of people out of being able to afford health care. While we are at it, lets give the rich 5% of our country a health care price cut. Lets give all rich people 20 dollars a year health insurance policy. Health should not be a benefit, it should be a right. No company should have the power to profit off of the fact they know someone will get sick at some point in there life, but they are, and they are the reason millions of americans, and children, do not have health care coverage.

Answer 9

I still believe it would in fact be more beneficial to work on better Small Business Health Insurance Programs.

Answer 10

Health care for the indigent should be free. Yes it would be less quality, but it's something. The rest of us keep what we have and pay what we are now (too much) but we opt for it over free, with better care.