Unbiased Analysis of Today's Healthcare Issues
The following is a timeline which summarizes the genesis and evolution of government provided health insurance in the United States. Major Foreign Events: 1883: Otto von Bismark, then Chancellor of Germany passes a compulsory health insurance bill for factory and mine workers 1911: Germany extends compulsory insurance coverage to almost all employees 1911: David Lloyd…
Forbes magazine reports that William W. McGuire, CEO of UnitedHealth Group) received compensation of $124.8 million in 2005. Managed Care Magazine also says that the average executive compensation (excluding unexercised stock options) for an executive of a ‘top 10 for profit health plan’ was $11.7 million and that was back in 2000. Are these high…
One key parameter of interest to policymakers is the firms elasticity of offering health insurance with respect to price. This is an important question because the current tax exemption of employee compensation in the form health insurance in essence changes the price of health insurance. A large—in absolute value—elasticity would imply that the tax subsidy…
Large firms offer more generous health insurance to employees…right???? While it is true that large firms are much more likely to offer insurance to their employees, small firms are actually more likely to offer insurance in which they pay for 100% of the costs. A December 2005 paper by Zawacki and Taylor (“Contributions to health…
A RAND study published in the American Journal of Managed Care (“Varying Pharmacy Benefits With Clinical Status: The Case of Cholesterol-lowering Therapy“) claims that managed care administrators may be able to vary pharmaceutical co-payment amounts by risk group in order to reduce cost and improve health outcomes. Thus study looks at Cholesterol-Lowering pharmaceuticals. Co-payments are…
In general, I am not in favor of health care which is controlled by the federal or state government. I do not believe that the Canadian or British systems are the best methods to administer medical care to a nation’s citizens. Below I will argue that equity concerns do not justify centralized health care, but…
In the State of the Union address, President Bush dedicated portions of the speech to the health care problems facing the United States. A summary of his proposals is located on the White House website. I will comment on a few noteworthy additions to the Bush plan, of which I was not aware of during my…
A January 26th New York Times article (“Prognosis is Mixed for Health Savings“) gives a brief summary of the results of the Health Savings Account (HSA) legislation enacted in 2003. The HSA allows individuals to contribute to a health care savings account using pre-tax dollars; a mechanism for savings is similar to a 401(k). In…
In the United States today, many employees receive compensation in the form of health insurance in addition to pecuniary remuneration. Health insurance, however, is tax deductible when it is received from an individual’s employer while wages are not. A Health Affairs report shows that this tax expenditure from excluding health insurance from the federal income…