Monday, August 9, 2010


US Healthcare system which is going out of control is a major reason for the US debt and deficits. This is how it works:

From the time you are born until you are 65 years old (capturing the most healthy and least costly life span of a person) the healthcare insurance companies charge citizens a health insurance premium which is subsidized by the US government and state governments through a tax deduction costing the federal budget about $400 billion per year in deficit and a few more billions to all the state governments. This healthcare insurance premium is the biggest regressive tax imposed in the history of the world. More money you make the lesser the rate of insurance (indirect taxes) you pay. In the case of most working people health insurance is paid by their employers and thus people do not recognize this and think that it is free. But it is not and it is a regressive tax on their income. This taxes amount to over 50% of annual income of the poorest families and bankrupt about 700,000 people every year. This punishment on the nation is in addition to about 45,000 people, the healthcare industry is killing every year by not providing adequate healthcare.

Then when Americans turn 65 reaching the age that is too costly for the insurance companies to pay for their healthcare, the companies shrewdly shift that cost to the federal government through the Medicare program which is bankrupting the nation due to spiraling cost of unaccountable healthcare in the USA.

The irony of this welfare scam is that until any American is 65 they cannot get even a medical check-up if they don’t have insurance. Even if they have insurance, often insurance companies deny it (praying them to die quickly) since the high cost of healthcare has to be borne by the private insurance company but the minute the patient is shifted to Medicare insurance then the same hospitals would grab the person to the hospital and do not let the person die. The longer they keep him alive by any means possible, more money they can squander from the government. The healthcare industry charges about $10,000 per day to keep a dying man alive by hooking him/her up to all the high tech machines. And this same industry will refuse treatment when Americans are under 65 and, insured by their partners, the private Health Insurance industry. Such a scam could not have been perceived in fiction but this is the reality in the USA.

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