By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    healthcare cybersecurity
    4 Helpful Tips on How to Protect Your Medical Practice Against Cyber Attacks
    October 24, 2021
    Health Check Diagnosis Medical Condition Analysis Concept
    6 Health Woes With Online Remedies
    January 19, 2022
    Eight Things Men Should Know About the Male Menopause
    Eight Things Men Should Know About the Male Menopause
    April 24, 2022
    Latest News
    Getting Back in the Game: Sports Injuries Rehabilitation Tips
    May 31, 2023
    4 Signs It’s Time to See a Therapist
    May 24, 2023
    11 Ways To Modernize Your Private Practice
    May 17, 2023
    How to Recognize the Signs of Hormonal Imbalance in Men
    May 29, 2023
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Is it Possible to use Disruptive Innovations to Integrate Health Systems?: Video
    May 13, 2012
    Image
    Putting a Price Tag on the Decision to Opt-Out of the Medicaid Expansion
    June 28, 2013
    Following the French on Alzheimer’s care
    October 19, 2012
    Latest News
    MRI Sedation Options: What You Should Know Before Screening
    May 17, 2023
    What is the Process of Creating Medicine from Nature?
    May 2, 2023
    Choosing the Right Treatment Option for Varicose Veins
    May 2, 2023
    What Are Wrong-Site Surgeries and How Do They Occur?
    April 27, 2023
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Are Republicans Plotting a 100% Death Tax on the Middle Class?
Share
Sign In
Notification Show More
Aa
Health Works CollectiveHealth Works Collective
Aa
Search
Have an existing account? Sign In
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Health Reform > Are Republicans Plotting a 100% Death Tax on the Middle Class?
Health Reform

Are Republicans Plotting a 100% Death Tax on the Middle Class?

DavidEWilliams
Last updated: 2011/04/18 at 3:03 PM
DavidEWilliams
Share
4 Min Read
SHARE

Merrill Goozner of GoozNews has a provocative take on the Ryan plan for Medicare. He contends that it is the equivalent of a 100 percent estate tax  (or “death tax” in GOP parlance).

Merrill Goozner of GoozNews has a provocative take on the Ryan plan for Medicare. He contends that it is the equivalent of a 100 percent estate tax  (or “death tax” in GOP parlance).

He has a point. Ryan would shift most of the cost of Medicare to patients and give them more “skin in the game,” aka incentives to keep costs down. That’s fine when we’re talking about moderate expenses for middle class people, such as encouraging patients to take a generic statin instead of a branded one. But it won’t work for the big expenses, like hospitalization, that characterize end of life care and which account for much of the cost of Medicare. As Goozner argues:

Seniors and the poor account for over half of health care spending. Within those groups, 5 percent of the population accounts for 50 percent of health care costs; and 20 percent of the population accounts for about 80 percent. These costs come for the most part at times when economic incentives have no influence at all on medical decision-making: in medical crises; in treating chronic conditions; and, for most Medicare patients, in the last six months of life.

More Read

What Will Machine Learning Do With Healthcare In 2020?

Keys To Proper Disposal Of Pharmaceutical Waste
New Mesothelioma Treatment Approved: Here’s What To Know About It
5 Fantastic And Healthy Outdoor Activities For People Over 40
Pros And Cons Of Supplements In Your Daily Diet

Therefore, Goozner expects the result to be that many people will loose their life savings to the medical profession and have nothing to pass on to their kids. Instead of the “death tax” going to the government it will go to the medical profession.

I agree that giving individual consumers more “skin in the game” is unlikely to affect medical practice much, especially for costly procedures and hospitalizations. The free market approach that works so well in other areas of the economy to promote efficiency, value and competition doesn’t work well in the health care environment.

But Ryan has done us a favor by getting people to start to face up to the reality that the country can’t afford it’s current approach to Medicare in particular, and that if today’s working age population wants to receive some form of Medicare at retirement we’ll have to make some changes.

The solution isn’t to put Medicare cost control in the hands of private insurance companies. Take one look at Medicare Advantage with its high costs and you’ll see why. But we also won’t be able to keep costs down just by bashing insurance companies either and focusing on their profits and executive salaries.

What we’ll really have to do as a country is figure out a way to reduce the cost of care delivery. Accountable Care Organizations (ACOs) or something like them are a reasonable first step in that direction. It’s a baby step that could still end up backfiring as ACOs lead to consolidation of local market power. But the sooner we come to understand the need to focus on the delivery system as a cure for high costs the better.

And as long as Ryan has opened the door to radical ideas, maybe we’ll also start losing our fear of looking at best practices, i.e., how other rich countries manage to spend at half or less of the US level. When I hear politicians talk seriously about what lessons we can adopt from countries like the UK, Switzerland, France and Singapore I’ll know we’re getting real.

 


TAGGED: health care reform

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
DavidEWilliams April 18, 2011
Share this Article
Facebook Twitter Copy Link Print
Share
Previous Article Devices for the Treatment of Obesity: Modes of Action
Next Article The Fatal Conceit

Stay Connected

1.5k Followers Like
4.5k Followers Follow
2.8k Followers Pin
136k Subscribers Subscribe

Latest News

medical bills
Who is Responsible for Paying the Medical Bills After an Injury?
News June 1, 2023
sports injury rehabilitation
Getting Back in the Game: Sports Injuries Rehabilitation Tips
Health May 31, 2023
brush your day
How Many Times A Day Should You Brush Your Teeth?
Dental health May 29, 2023
Chiropractic Laser Therapy: A Beacon of Hope for Chronic Pain Sufferers
Chiropractic Laser Therapy: A Beacon of Hope for Chronic Pain Sufferers
Therapies May 29, 2023

You Might also Like

protect patient's information
Health ReformMedical EthicsPolicy & Law

7 Key Tips To Protecting Patient Health Information

September 8, 2022
Long-Term Disability Insurance
Health ReformPolicy & Law

What Can You Do If Your Long-Term Disability Insurance Won’t Pay Up?

March 30, 2022
Psychiatrists are now working online
Global HealthcareHealth ReformMental HealthPolicy & LawPublic Health

Psychiatrists Now Working Online: How the Mental Healthcare Industry Is Evolving

December 12, 2021
people in the office having a discussion
HealthHealth Reform

Health Benefits of a Clean Office

October 25, 2021
//

We influence million of users and is the most authentic source of information on healthcare business and technology news.

Quick Links

  • About
  • Contact
  • Privacy
Subscribe

Subscribe to our newsletter to get our newest articles instantly!

Follow US

© 2008-2023 HealthWorks Collective. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?