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Health Insurance Costs Rising Question & Answers

2015 August 4
by Sarah Fields

Sharon asks…

Seniors, do you believe the world is on the verge of economic melt down?

Warren Buffett says he is optimistic about the future. I guess you can be if you’re a multi-billionaire. But what are the rest of us to do? Gas prices are rising rapidly, my prescription costs have risen, food costs are up, (I am buying more and more brand X these days), my health insurance has sky rocketed, but my income is the same. And to add insult to injury, Charmin costs more too! Can’t use corn cobs because it will plug up my toilet, and I haven’t seen a catalogue in years.

Sarah Fields answers:

Since the nineteen seventies I have been involved in a number of political activities and groups where similar projections of economic disaster have been made and I have always argued against such assertions. After all, since World War II the world (at least the Western nations) have turned on the economic success and strength of America.

With the available energy resources within America’s borders (and close neighbors) energy use has continually expanded to fuel our economy. Food production within America has been continually developing and growing to the point that America could nearly feed the world if we used all of our agricultural capability. Its citizens have been the best educated and most innovated that have ever existed in the history of the world. Communication among its citizens and its protected individual freedoms have created an environment where nearly any challenge (certainly any economic challenge) can be faced and beaten.

However, today my confidence is not so strong.

Certainly all of the things mentioned above are still with us, but there is another element which has also grown that is mitigating the use of these resources. That is, our government and a transition from the values of our nation’s Founders for a Republic to an ever increasing progressive move to socialist concepts and increasing governmental intrusions into our private lives.

Some things to keep in mind:

The Depression of 1920 – 1921 (as serious as the nineteen thirties depression) was over within 2 years because the government stayed out of it and the private sector corrected it.

In nineteen twenty-eight the cost of local and State governments totaled about 7% of the Gross Domestic Product (GDP) and the federal government was about 3% of the GDP. Clearly our country relied on the people and local government to do things. Today the local and State government are about 10% of GDP and the federal government has grown to 30% to 40%, depending on what you include. This demonstrates the result of that progressive movement with the federal government doing more and more.

Our governments (particularly the federal government) have raised taxes to the point where America taxes its businesses in the top two or three of the western nations. Businesses which have the opportunity consider moving to other countries with less taxes. Jobs and production decrease within our borders and revenue to the government also decreases. As a result the government borrowing of money increases to cover the increasing governmental growth as well as decreasing revenues.

With current projections governmental debt is projected to surpass 14 trillion dollars within ten years. This has caused our government print more money and to buy our own debt which only makes the problem worse since it doesn’t work.

There is a lot more but the point is that for the first time in my life I believe that we are facing the most serious national problem since the Civil War. Unlike the 1920 – 1921 Depression the government will (is) getting deeply involved (in extra-constitutional manners) making the situation much worse. However, more importantly is the change in our population since the depression of the nineteen thirties. At that time about 80% of the people either lived in a rural environment or had close relatives who did live in an environment where the people could produce their own food. That is not true today. Most people today could not get through a week because all of their food comes from a grocery store and in tough times that food may disappear. In such an environment large segments of the people will panic and demand government intervention. Remember, in such an situation the government doesn’t grow food, and they’ll have to come to the private sector to get the food. If the food producer don’t want to be paid with dollars worth less, do you think that will stop the government just taking it?

Am I being to negative in such thoughts? I really hope so.

Mary asks…

Will the health insurance lobby quit giving to Senators and Representatives?

Did the Health Insurance lobby give an ultimatum to Senators and Representative they gave to stop health care reform? Did they say stop reform or we will no longer contribute?

Sarah Fields answers:

You really never thought about the issues – did you?

The money to pay for treatment of pre-existing conditions and the abuses that we are going to see in health insurance has to come from increases to the premoims charged to people with health insurance.

So now, that formerly uninsurable drug addict is going to wind up on the same health plan as my family. Since his medical costs are going to be greatly in excess of mine and we will all be charged the same premium – I will see my rates rise to cover the costs of his care.

Then a _really_ nasty thing happens. The increases in premiums forced on the 80% of the population who currently have health insurance is going to push them into the price range of the ‘cadallac plans’ – and they will then have to pay an additional; 30% tax.

Now you also have to add the costs ot the taxes on health insurance companies and on medical products and hardware. This is going to increase the costs of running a doctor’s office, hospitals and medical insurance companies – costs which will be passed on the to consumer in the form of higher prices.

Did the liberals just create ‘healthcare for all’ or did they create a situation where people will be simply unable to afford quality health insurance?

Steven asks…

Is there anything in the health reform proposals that will lower the cost of treating a patient?

I ask because even if everybody has insurance the cost of treatment isn’t going down therefore I assume that insurance costs will continue to rise. Where are the savings promised by democrats going to come from?

Sarah Fields answers:

Well, it’s like this, if everybody has insurance there will be no more people going to the emergency room to get treated even though they can’t pay the bill. You see, if the hospital doesn’t get payed they need to make up the loss somewhere. They do this by charging more. So if they are always getting paid they won’t have to make up for anymore losses and you will pay for what treatment you get. Not for what treatment you get + the treatment that someone who couldn’t afford it got.

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