FREE NEWSLETTER
When I read posts on social media, the word “free” pops up all too frequently.
Free health care, free education, free flu shots, free birth control, freedom from taxes is popular too. Is this wishful thinking or a reflection of a serious lack of understanding about how things work?
I look for offers including free shipping, but what if I must spend $200 to receive it? Buy two get one free, but I only need one. Now I have three and still paid for two.
I don’t know if I should laugh or cry when I read people asking why our health care can’t be free like Canada or England or a Scandinavian country. In some countries college is “free” as well. Of course in those countries taxes are higher, especially payroll taxes and also the 20% + value added tax (VAT).
While we are vocal about taxes, it appears Americans would prefer the cost of many essential services and benefits to be buried in taxes and thus naively claimed to be free.
I liken this to what I call the highway syndrome. I drive happily down the road using the express lanes going through one toll area after another and it’s free to me. I don’t slow down, no coins in the booth – just free. That is until EZ Pass charges my credit card.
Some of my fellow seniors believe they should not pay property taxes toward the cost of schools. They did their bit when younger with their children they say. Imagine property taxes necessary if schools were only funded by young families.
Our new president says Social Security benefits should be tax free and yet those income taxes are used to fund both Social Security ($50 billion a year) and Medicare ($35 billion a year) trusts.
Many retirees look for strategies to avoid IRMAA Medicare premiums, but in their absence, premiums for all on Medicare would be higher – or the national deficit would be as Part B is 69% funded from general revenue. Medicare Advantage plans are sometimes free, but there is a price to pay – limited access to care, not so publicized deductibles and, of course draining more funds than necessary from traditional Medicare. It’s all connected.
Many Americans embrace the idea of lower taxes, it’s almost traditional. Who favors higher taxes? I’d like lower taxes, but who will foot the bill we are accumulating? Even the national debt is not free – nearly $1 trillion a year in interest payments.
In reality the US is among the lowest taxed countries in the world.
I’m pretty sure free does not exist and yet we seem to want more of it.🤑
When things are ‘free’ and consumers don’t have some skin in the game it tends to make them less responsible. If all my care is free then heck yes I will go ahead and get all the expensive tests and care that I can. But if I know that I am responsible for part of the cost then I will be more discerning about what care I really need. This (along with personal well being) also provides incentive to try and live a healthier lifestyle. This is a common sense principle that makes perfect sense in many areas of life, but many would still call it unfair. I am in agreement that ‘free’ is not a good solution. If consumers think Medicare for All means ‘free’ they will be surprised, plus imagine how much more health care demand there will be if everything was free.
It may be common sense, but when it comes to health care it is a fallacy.
The concept has been tried for decades. That is the reasoning Medigap F is no longer around. The idea of making patients consumers, shoppers with skin in the game is simply not applicable to health care. It may motivate to use a generic drug, but not much more.
I doubt many people, sensible people, will get all the tests they can because they are “free” Who in their right mind wants any tests that are not absolutely necessary? Many are uncomfortable, unpleasant and often with a measure of risk.
‘’The patient does not determine the care needed, the physician does and very, very few patients are going to say, “that’s too much, I think I’ll skip that MRI, nor are they going to shop for the cheapest deal.
I never once thought about the cost of my or my wife’s or my children’s care. If someone is sick, especially seriously, price is and should be the last thing on your mind.
All the things that make sense for motivating consumers to buy or not do not apply in the same way to health care. We have tried FSAs, HSAs, HRAs, high deductible health plans, no Plan F. No scheme has had any significant positive impact.
Clearly, we can’t have a blank check either which gets us back to insurance using dollar limits, various forms of reviews for medical necessity, utilization limits such as with chiropractors, etc.
I’ve been splurging lately since we’ve met our high deductible: CT scan, cardiac stress test, blood tests for Alzheimer’s, MRI. Much nicer paying 20% than 100%.