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Back to the Health Policy Drawing Board [The New York Times]

NEW YORK TIMES (NYT)  More Company Research Source: The New York Times
Last new york times earnings: 2/8 08:30 am Check Earnings Report
US:NYSE Investor Relations: investors.nytco.com/investors/default.aspx
PDF This drives premiums up, making insurance still less attractive to the healthiest people. That, in turn, causes many to drop out, producing the fabled “death spiral” in which only the least healthy people remain insured. But at that point, private health insurance may no longer be viable, because annual treatment costs for serious illnesses often exceed several hundred thousand dollars. Most nations have solved this problem by adopting universal coverage financed by taxes. The United States probably would have followed this approach except for a historical anomaly during World War II. Fearing runaway inflation in tight labor markets, the American government imposed a cap on wages. But the cap didn’t apply to fringe benefits, which employers quickly exploited as a recruiting tool. Employer health plans proved particularly attractive, since their cost was a deductible expense and they were not taxed. Before the war started, only 9 percent of workers had employer-provided insuranc [Read more]

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