In the recent Wall Street Journal article entitled "Health 'Reform' Is Income Distribution," the authors critique the Congressional health care bill for the burden it puts on the younger generation. They explain how three facets of the bill would produce a costly burden. First, the mandate for insurers to not discriminate based off pre-existing conditions or prior health. Second, the mandate dictating every citizen purchase health insurance. Finally, the idea behind community rating, where insurers are forced to relatively equalize how much they charge individuals for health insurance. The authors argue that these forces will cause younger citizens to finance the large expansion of the health care system by essentially transferring their income to the older generation by means of higher premiums.
While this article has a distinct opposition to such a redistribution, it raises many theoretical questions regarding the proper role of each generation. Should the younger generation be expected to "pick up" the bill in order to insure an aging population? Is putting the cost burden on the healthiest Americans consistent with capitalistic principles? How effect are current systems that utilize similar funding methods, namely Social Security?
I find this article interesting at a time when many younger Americans are in favor of the proposed health overhaul, while many older Americans are against it.
I think "community rating" proposed requirement in the bill is obviously unfair. With the issue of income and age aside, it is just common sense to charge those who are at a greater risk to become sick more than those who are healthy. Automobile insurance operates on the same basis - if you are more likely to be in an accident, you pay more for insurance. If someone smokes, eats unhealthy, does not get adequate exercise, then the higher cost of insurance is a burden they must bear.
ReplyDeleteSome argue that it is not fair to charge someone more who has not had any control over becoming ill, in contrast to those who have consciously chosen to live an unhealthy lifestyle. Again, automobile insurance typically charges younger drivers more, regardless of a clean driving record. There is nothing one can do about their age, it is just a reality that one must live with so that insurance can be affordable for more people.
I believe that the younger generations indeed will suffer a major burden of paying for everything that is being lobbied, proposed, and/or legislated now in the United States. Our federal deficit climbs ever higher, wars and military functions cost money, social security is going broke, and now the health care issue will only add to an enourmous debt in the crucial and slow economic period we are in today.
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