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“Nothing but the best for Grandma,” as long as someone else is paying the bill.
As Congress closes in on the final form of the new law, the national debate over health care has shifted from how to improve care or cut costs to how to extend health insurance to all.
In the October 19 issue of AIER’s Research Reports, economist Bill Dunkelberg dissects the widely quoted number of uninsured people within our borders—the 47 million.
Some contend that adding 47 million allegedly uninsured people to the health care market can be done without raising costs. On the face of it, this would seem to be logically impossible to achieve without reducing the level of medical care received by currently insured individuals.
Fortunately, says Professor Dunkelberg, the number is highly misleading. On the day the survey was conducted, there may have been 47 million who responded that they were uninsured. But far fewer are uninsured for long periods of time.
- Roughly 10 million of these people are undocumented immigrants, and taxpayers should be able to decide how much if any care they wish to provide to this group.
- Another 9 million qualify by virtue of their low incomes for Medicaid but haven't signed up because they haven't accessed the medical care system. When they do, they are covered.
- Similarly, about 4 million "uninsured" children are covered under the Children’s Health Insurance Program (CHIP), but have not been enrolled.
- About 10 million are from families making enough money to buy health insurance (having incomes above 300% of the poverty line), but choosing not to. Some pay for care out of pocket.
- Others, many young, prefer to spend the money on a better car and take their chances, knowing that if they have an accident, the hospital ER will take care of them.
So using the number 47 million is not helpful for identifying the nature of the problems and their possible solutions. Indeed, many critics of reform point out that everyone gets health care today, since none are turned away.
This is inefficient, but suggests that we aren't going to add 47 million new people to the system, creating doctor shortages. The doctors are already in the system, and their care is paid for by explicit and implicit subsidies—as when hospital room charges are high enough to cover bad debts, for example.
This article has been adapted from Professor Dunkelberg’s article “Health Care Reform: What Do We Want?” in the latest issue of Research Reports, available free to AIER subscribers or $2 for non-members. Also in this issue:
- China: World Leader…in Pollution?
In 2008, China’s greenhouse gas emissions exceeded America’s.
by David Baumann, Research Associate
- Ask the Expert: Tenancy by the Entirety
Married couples can benefit from a special form of joint ownership.
by Kevin T. McGrath, CPA, tax partner with BST Advisors, LLC
To subscribe to AIER Research Reports, please become an AIER member. Membership starts at just $39 per year.
Already a member? Keep your eye out for the October 19 issue of Research Reports hitting your mailbox or inbox soon.
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