Employee Retirement Income Security Act of 1974Paul claims that the rising costs of health care are the result of failed government policies. In 1974, the Employee Retirement Income Security Act (ERISA) began granting tax breaks to employers to offer heath-care insurance to employees. But the same tax benefits are not offered to individuals.
That puts employers in competition with individuals, causing health costs to rise. Obviously, employers, especially large corporations, can afford higher premiums than individuals can. But at the same time, the employers must recoup the rising costs by increasing the premiums that employees must also pay.
Taking health-care out of the free-market resulted in HMOs and managed care—not by the individual consumer, on whose patronage the free-market thrives, but by large corporations such as the drug companies, who have much lobbying power. This government-mandated control artificially raises prices, because there is no free-market control over quality.
“You cannot expect socialized medicine of the Hillary brand to work”
By making health care insurance dependent on employment, “government removed the market incentive for health insurance companies to cater to the actual health-care consumer.”
Paul understands that allowing individuals to choose their health-care insurance carrier and their own health-care provider is the way to reduced health-care costs. Also, individuals should be able to deduct all of their health-care costs. As it is now, only employers can benefit through these tax deductions.
“We need to get the government out of the way”
Paul reminds us that before the government mandates artificially coupled employment and health-care, the U. S. health-system was the “envy of the entire world.” He explains why: “Most Americans paid cash for basic services, and had insurance only for major illnesses and accidents. This meant both doctors and patients had an incentive to keep costs down, as the patient was directly responsible for payment, rather than an HMO or government program.”
Paul emphasizes that “when government and other third parties get involved, health care costs spiral.”
Comprehensive Health Care Reform Bills
To correct the current government-mandated system, which has resulted in government control of two-thirds of the health-care system, Paul proposes the following bills:
HR 3075: Allow families tax credit to meet increasing costs of health insurance premiums.
HR 3076: Institute a tax deductable “negative outcomes” insurance that would reduce the malpractice suits. The patient whose care has resulted in injury would receive compensation without going through a lengthy lawsuit that ultimately fattens the bank accounts of trial lawyers while damaging the physicians and hospitals.
HR 3077: Create tax credit to make children’s health-care more affordable for parents.
HR 3078: Suspend collection of Social Security payroll taxes for people with documented terminal illnesses. Paul says, “There is no justification or excuse for collecting Social Security taxes from sick individuals who literally are fighting for their lives.” And who, of course, will not live to collect any Social Security benefits.
For further information:
Ron Paul: Voting Record on the Issues
Lowering the Cost of Health Care
