Posted by Jon Fleischman at 12:00 am on Jan 30, 2007 Comments Off on Health Care’s Real Hidden Tax
Here are some thoughts from 30,000 feet – as I am flying up to
Sacramento for a quick trip to the State Capitol…
The real “hidden tax” in the health care arena is not this
number that accounts for the costs of uninsured people who
nevertheless receive health care services. Oh, that is a troubling
situation to be sure, and we need to figure out a way curb the
ability of those who choose not to have coverage to get services
for free (“free” is code for “from other taxpayers”).
The real “hidden tax” comes from what John Graham, the Director
of Health Care Studies at the Pacific Research Institute, refers to
as “overinsurance.”
It is estimated that one-quarter to one-third of health care is
wasted because almost nobody has the right incentives to use it
wisely. Our third-party payer system takes away any incentive for
patients with health care plans to be concerned with whether they
“over use” their coverage. In fact, many do because there is an
incentive to “get more” from their coverage.
According to Graham, this “hidden tax of… Read More