Wednesday, March 28, 2012

Cost of health insurance will surpass income by 2033 | SmartPlanet

Everyone who thinks healthcare is cheaper in Europe is looking at old data the Obama administration threw out to the public during the healthcare bill fight.

It was an old 2000 study by the World Health Organization that declared all of Europe provided healthcare at a lower cost per person than the US. The sad part is they were wrong and later quietly admitted it.

The original study in 2000 was flawed in that it only looked at premiums paid in Europe. They left out co-pays, deductibles and more importantly TAXES. All of which somehow made it into their US numbers. In 2003 they came out with a revised study based on a larger data set that included ALL SOURSES of money that paid for European healthcare.

Once those factors were added in the US was the cheapest per person cost for healthcare among western nations. Italy was still one of the best in Europe.

After reading the final report I have to admit to liking the Italian operating and funding model. Healthcare operations and costs are managed at the regional level.

Healthcare taxes, done as a property tax, vary from region to region based on how effective the regional management is at managing costs. The regional healthcare management head is an elected position not a bureaucrat, so quality and cost effective service, good care and low taxes, are what gets them reelected.

It would be comparable to our states managing it in the US with an elected official in charge of the State Health Department.

Who would have guessed Italy would model something after the method preferred by our founding fathers. Let states manage their own systems. Get the feds out of our lives.

Source: http://www.smartplanet.com/blog/rethinking-healthcare/cost-of-health-insurance-will-surpass-income-by-2033/8319

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