Should Health Insurance be Mandated?

Q:  My wife and I earn $53,000 per year.  We have two car payments and a mortgage.  I am self-employed and do not have health insurance, which for my family would cost over $12,000 a year. I simply can’t afford it.  I am very nervous about being uncovered but we are healthy and I can simply pay for my doctor visits.  Why does the government require that I buy health insurance?

A:  This is a very typical question (in context) raised by a number of readers.  Since President Harry Truman tried and failed to expand Social Security to include universal health insurance, no administration since has been able to solve this dilemma until the Obama Health Care Bill. Everyone needs to be protected for health coverage for a number of reasons. Unfortunately, President Obama’s mandate has not accomplished effectively roping in insurance costs. Why are costs so high?

The uninsured drive costs up as they typically cannot afford to pay their bill and this loss is factored into the cost of insurance for those that do have it.  If all were covered, this would stabilize costs.

Being able to pay for office visits is one thing, paying for a hospitilzation without health insurance could result in bankruptcy.

The fragmented system of health coverage through health insurers adds to administrative costs which exceed 18% of the medical services bill. The administrative costs of providers, such as doctors and hospitals add another 18%.  More than 1/3 of a medical bill is absorbed in these administrative costs.

Our health care system is too inefficient and too expensive.  Medicare costs are under 5%. Medicare for all has been proposed. However, due to the health services environment, Medicare costs continue to escalate and as a result are under fire and may face significant cost containment. Health Maintenance Organizations (HMOs) were a first major step to control costs.

The evolving technology and new drugs raise costs.  Advances make health care expensive.  That is why it is important to control profiteering and make the system more efficient with minimal administrative costs.The solution to bringing health care costs down and affordable requires drastically reducing administrative costs, making the system efficient, and covering everyone. 

Mandating families to have health care coverage without addressing these issues is very unpopular with the public and likelyunrealistic.

Have a question for Dr. Yacht? Email him at mjyacht58@gmail.com.