What does Single Payer, Employer Exclusion and the Elections have in common?
So, what do Single Payer, Employer Exclusion and the Elections have in common? The answer is “everything”?
Back in the halls of Congress and on the campaign trails, 2 disrupters in the health insurance industry are surfacing again. Single Payer and Employer Exclusion.
The single payer movement!
- Many candidates are espousing a European or Canadian Model System. This last week one of our guest speakers who is a Canadian Citizen and a user of the Canadian system said, their Single Payer system is on the breaking point of insolvency. He explained that the Canadian Government will have to make some dramatic changes soon by raising taxes and reducing services.
As a note: A family of 4 in Canada pays approximately $12,000 per year through their tax system. To learn more read Frazier’s Research on “The Price of Public Healthcare.”
In America we have 2 Single payer systems. Medicare and the VA.
- Today we have approximately 44 million beneficiaries on Medicare which equates to around 15% of our population in the U.S.
- Medicare is projected to go insolvent in 2026, 3 years earlier than projected just a year ago.
- Actuaries are estimating increasing Medicare taxes to around 28% and some reduction in medicare benefits to keep Medicare above water past 2030.
- Now imagine adding everyone to the Medicare. What would those taxes look like, what benefits would have to be rationed, will doctors chose to leave?
- I am not going to go into depth on our VA system. The VA system has its good and its bad side. Everyone knows the troubles it has with long wait times and rationing of services.
- What people don’t realize is it is a benefit, therefore it is not recognized as creditable coverage other than the RX benefit. This creates a huge problem when a Veteran ages into Medicare.
Employer Exclusion Movement!
In this scenario, it could lead to Employers dropping health insurance for their employees.
- There are approximately 155 million employees on their Employer Health plans.
- Currently Employers and Employees can pay for their health insurance using pretax dollars to do so.
- Congress is looking at taking those pretax dollars away. This will lead to some Employers dropping Employer Health plans.
So, this election cycle can have a dramatic change in our industry and our healthcare.
I will do my best to keep you updated.