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On Mon, 2010-03-29 at 19:57 -0400, Louis Proyect wrote:
> It may be desired by "employers" but does it make sense from the
> overall needs of the capitalist system for such a large proportion of
> the GDP to be associated with health care? If this system was more
> Spartan, it would find ways to reduce these costs to a minimum.
> Insurance companies are basically parasitic. Of course, that's the
> general drift of American capitalism. Aetna instead of infrastructure
> renewal.

By shifting more of the costs of health care to the workers, two things
are accomplished.

First, workers pay more, through mandated insurance, bigger deductibles
and co-pays. This benefits the profiteers in the health field, and the
employers who provide insurance.

Secondly,by forcing the workers to pay more, the hope is that they will
use the health care system less, driving down prices for
hospitalization, drugs, etc. Taxing employer provided health insurance
is part of this. Once plans hit the taxable amount, up go the
deductibles and co-pays for the workers, to keep the plan below the
taxable level.

Just a note on whether employer based health insurance is a competitive
problem. Employer based insurance has the beneficial effect of tying
workers to their jobs, and making them very hesitant about things like
strikes. A socialized health care system would take that monkey off the
workers back, and heaven forbid US workers take after their French
brothers and sisters, and start striking at the drop of a hat.

Jon Flanders


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