×

Expand Medicare to offer health care

A solution to America’s twin challenges of providing universal health care to all and restoring the economic vitality of the Rust Belt go hand in hand.

How many times have labor/management disputes over health care costs created turmoil in manufacturing cities and eventually resulted in plants being closed?

In large measure this consequence is the result of the firm’s inability to compete in the global marketplace because manufacturers in other industrial democracies are not facing the costs of health care. It has been noted many times that we are not competing on a level playing field when it comes to international trade. I certainly agree with that.

But it is a problem of our own making for the simple reason that American employers are carrying the health care costs of their employees. In virtually no other major industrial society do employers directly bear the costs of health care for their employees. It is a problem that will continue to expand as health care costs keep rising.

So what can we do about it? Employers providing health care came about in large measure during World War II when wage and price controls prevented paying competitive wage differentials. So employers provided health care in lieu of higher pay. The long term consequence of this has been the destruction of America’s once vast manufacturing sector.

To address the problem, we need to undo the past identified needs of the World War II generation and change the system to one that meets today’s needs. And that is a system in which no employers — whether they be private or public sector — are paying health care costs.

How then could we provide for health care? How about expanding the Medicare system (which we already know how to operate) and fund it with a Value Added Tax?

Yes, it’s true that a VAT would increase prices on consumer goods. But it’s also true that in the absence of paying health care costs, employers could pay higher wages and we would have significantly more jobs.

In addition, because the VAT is based on value added to goods and services, all people pay it in accordance with the amount they consume.

Our manufacturers would have no need to relocate to China or Mexico to save money on health care costs. Health care would be accessible to all on an equal basis. American workers would be healthier, and they could receive higher wages. Business profits would increase dramatically.

And just think — there would be no need to pass an excess levy for the county school system if financial directors did not have to pay PEIA costs. The same goes for the West Virginia State Legislature. No need to quibble about tax increases if there is no need to pay rising health care costs for state employees. Food for thought.

Dr. Duke Talbott is a retired college professor and former mayor of Elkins.

NEWSLETTER

Today's breaking news and more in your inbox

I'm interested in (please check all that apply)
Are you a paying subscriber to the newspaper? *

Starting at $3.92/week.

Subscribe Today