a follow up on health insurance

Topics: Health
09 Jan 1993

From:

As I have said before, I think bundling of benefits is a bad idea because
it removes all individual discression and incentive to economize. Furthermore,
the government allows a 100% tax deduction for employer paid benefits,
only a 25% deduction for self-employed persons and 0% for non self-
employed but self paying individuals (unless their total medical bill
exceeds some threshold of their income).

I never suspected the obvious: such a bad idea was caused by government
policy in the first place. Health insurance as a benefit first started
earlier in the century when the government had price and wage controls
in place but employers were looking for a way to raise wages to
lure more workers. How foolish.

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