Pros And Cons Of Government-Run Health Care

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Why Government-Run Healthcare is a bad idea There is a general agreement among healthcare providers and policy makers that the American health care sector needs reforms in order to improve the quality of care make it affordable and increase access. Nonetheless, some of the proposals that have been put forward have raise serious concerns that might undermine the chances of good reforms. One such proposal is the proposed public or government-run health insurance plan. The new plan would put the government in direct competition with health insurance giants such as Blue Cross Blue Shield. The insurance plan has been designed to emulate government-run medical insurance plans such as those offered by the governments of Canada and the UK. Proponents…show more content…
This is bad for competition and the ability to provide quality care. The main problem that a government-run health insurance presents is the possibility of driving people out of their current plans. The effect of this development is particularly true given the fact that a government-run plan is likely to offer reduced prices and, therefore, shift the market demand in its direction. According to the Ray (2008) the public health care plan will offer attractive and generous packages because it will be able to enjoy the sponsorship of the taxpayer. Since many private health insurance companies will not be able to offer such packages, they will be forced out of business. With time, the government-run plan might eventually force all private health insurance provides out of business causing it to become the only player in the health insurance provider. The reasons for this are simple. As the government-run plan gowns in size and revenues, the price difference between the public plan and private insurance plans will increase. Eventually, the government-run plan will be the only viable option for many people. Many employers, in attempting to reduce the cost of health insurance, will remove their employees from private plans and put them in the government-run program. In the end American will have a health insurance system that is…show more content…
(2008). Myths and Misconceptions about U.S. Health Insurance. Health Affairs. Retrieved from http://www.hks.harvard.edu/fs/achandr/HA%20Myths%20about%20Health%20Insurance.pdf Book, R. (2009). Single payer: why government-run health care will harm both patients and doctors. Retrieved from http://www.heritage.org/research/reports/2009/04/single-payer-why-government-run-health-care-will-harm-both-patients-and-doctors Congressional Budget Office. (2008). Key Issues in Analyzing Major Health Insurance Proposals. Retrieved from http://www.cbo.gov/ftpdocs/99xx/doc9924/12-18-KeyIssues.pdf Ray, J. (2008). The Obama Health Plan Emerges. Wall Street Journal. Retrieved from http://online.wsj.com/article/SB122714181668742739.html RPC (2009), A Government-Run “Public” Health Insurance Plan: Why Doctors, Hospitals, and Patients Will Lose. U. S. Senate Republican Policy Committee. Summit.org. (2012). Is Government-run health care a good Idea? Retrieved from
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