Recently, I blogged about the current healthcare debate. I noted that no matter where you stand politically, most people agree that something radical must be done.
Now here are some facts to chew on. Just 15% of the people use 75% of the benefits. This disparity will only grow as the baby boomer generation continues to age. Today, the average cost to cover a family with reasonable health insurance is $13,000 a year.
At the rate the health insurance costs have increased over the last ten years, it could cost as much as $25,000 per year to cover that same family ten years from now—if nothing is done to stop the bleeding (no pun intended). Most families simply cannot afford that. Furthermore, I can’t think of too many employers who will pay that kind of a premium for an employee and his or her family.
Add to this the fact that Medicare was not funded to handle these kinds of increases and our aging population is destined for serious trouble if nothing is done.
Yes, it is going to be expensive. Yes, it will be painful. Yes, we are leaving a terrible legacy (and debt) for our children. But in the long run, this will be less painful and less costly for all than the alternative. Nobody is saying the next few years will be a picnic while we go through this transition as a country. There is no good time to do this so we best take it on now.
Got a better idea? I’d love to hear it.