The demand for health care has risen in the modern world than at any other time in the recent past. People are succumbing to new and strange diseases that doctors have no idea of how to cure. The increase in such diseases is mainly attributed to the diet that people eat, chemicals that they use and pollution of the environment. The situation is made worse by the lack of affordable health care services in many countries. In the US, there are several entities that are tasked with the responsibility of providing health care.
This is what makes the US be ranked as the country which spends the most money than other nations in health care for individuals. It is estimated that the US spends over 15% of its GDP on health care, and in 2007, this figure was about $2. 3 trillion. This translated to about $7,500 for every person. Sadly, it is also the only industrialized and wealthy country that lacks universal health care. However, health insurance is accessed by citizens either through support from the government, individual or employer support.
The health programs that are funded by the government include programs that provide for the disabled, elderly, veterans, children and poor. According to Bitler (2006: 134-138), the government also directs emergency services access by the public, irrespective of whether one can afford or not. There are however many Americans who do not have health insurance. In 2007, the proportion of Americans who did not have access to health insurance was about 45. 6 million people, which was equivalent to approximately 15% of the population.
This paper aims at analyzing the two approaches that have been illustrated, as a means of increasing the number of people who have access to health care. The first scenario involves taxing the health care package from the employer, while the other involves taxing the people who are not covered under tax. Importance of health insurance It is very important for everyone to have health insurance. Health is the biggest asset that any person might possess, since without health, a person cannot do the day to day activities.
The importance of health insurance can be illustrated by the number of people who depend on it. In the US, 78% of people who consume health care services, do not pay for it through their pockets but through companies that provide health insurance, such as Medicaid and Medicare. Health insurance protects families and individuals from monetary losses that can result from illnesses, accidents or other unexpected events that negatively affect ones health. It involves payment of a small sum that is taken as investment for future health needs.
Scenario 1: Taxing the health care package from the employer. In the US, employers provide the bulk of health care services, with their contribution being estimated to be about 60%. Taxing the heath care package that the employer gives employees, is one approach that can be use to share the tax burden of the people without access to health insurance. One benefit is that people who are already suffering due to absence of health insurance will not be penalized for actions that may be beyond them.
As will be discussed later, most of the people who lack health insurance are the people who need it the most. The reasons for their lack of access are diverse, but most of the people in this category are not liable for this circumstance. Some are poor immigrants whose visas have expired, and they are afraid of exposing themselves, as they will be deported to their home countries, most of which are in ruins. When the health package from the employer is taxed, the people who are working will share the responsibility of providing for the health insurance needs of those who do not have access to them.
Another benefit is that this approach will help to redistribute income and reduce the gap between the rich and the poor through taking income from the rich and using it to help the poor. The costs of this approach are however the fact that the people in the lower income levels are likely to suffer. This might make some of them become unemployed. This approach may also encourage people to stop looking for employment opportunities so that they can be supported by the people who are working.