Health Care: Decreased Coverage, Higher Premiums

Listening to the news tonight, the anchor was reporting on the latest agreement between General Motors and the UAW. Their solution to GM going bankrupt was to cut health care benefits, either by decreasing coverage, increasing employee premiums, or both. I’m sure this is a terrific solution for GM.

However, in thinking about it, I’m guessing that shifting the high cost of health care to the employees is simply going to mean that employees will seek less and less health care. Guess who this hurts – the health care industry! Isn’t that ironic!!

I’ve already noticed a real increase in advertising by most health care providers (doctors, hospitals, drug companies, even the AMA!). I suspect that they are going to be hurting even more. The net result of this is that finally, costs will come down. I’ve address the high cost in other writings, and how a lot of the blame rests with the insurance industry. Maybe the trend of cutting benefits will finally turn this around.

This can’t help but influence prices in a downword trend! (Is that wishful thinking, or what!)