Health Care Rationing is Responsible and Necessary?
"Ultimately, even that (the VAT) won't be enough. As the population ages and health care becomes increasingly expensive, the only way to avoid fiscal ruin (as Britain, for example, has discovered) is health care rationing." - Charles Krauthammer
http://www.realclearpolitics.com/articles/2010/03/26/the_vat_cometh_104936.html
I reject that idea as a general principle, but it probably does apply to the position America finds itself in. What I like most about the statement is that it raises the difficult questions that our politicians are unwilling to broach. As a society we are getting older. Health care for the elderly is much more expensive than health care for the young. There are two ways to pay for health care in one's old age.
1) Place the burden of paying for your old age care on your kids and grandkids.
2) Save for health care expenses in your retirement planning.
Now, it's a no-brainer to me that #2 is the responsible choice in today's demographic environment. However, most American's seem to have chosen #1 a long time ago and never re-evaluated that choice. By choosing #1 and placing the burden of this wealth transfer on government taxation, we set up a system that was doomed to failure when dropping fertility rates caught up with rising benefits. The system functioned well with a rapidly growing population (e.g., it worked well for the WWII generation because they had a lot of kids). However, what works when there are 5 taxpayers for every retired person doesn't work when there are only 2 taxpayers for every retired person and health care for the elderly has come to cost far more than the average house. Even including government benefits (which cover far more than individual contributions) Fidelity estimates that health care will cost somebody retiring today a quarter million dollars.
The bottom line is that most people don't realize is that if you don't save for your health care expenses, your care will be rationed, and that's actually the responsible thing to do.
Either that or this country will destroy it's financial house through extreme deficits and hyper-inflation, leaving far fewer people with jobs and health care coverage in the long run.
I'm betting on financial ruin for this country, but I'm a pessimist by nature. I don't think our politicians have the courage to make necessary cuts. I think the elderly are too @#$# selfish to vote in people willing to make those difficult choices, and I think the young are too ignorant and absorbed in their own entertainment to worry about the future until it's much too late.
MB