America is often regarded as the land of choice, but for an estimated 180 million Americans, choice is hardly an option. When it comes to deciding on a health care plan that fits, they are forced, instead, to accept whatever their employer offers.
Around 1940, the looming threat of World War II was palpable, and the government was facing rising inflation rates. The more-than-a-decade-long Great Depression continued to provide cause for concern. As the war progressed, the government then decided, therefore, that the best way to combat these problems would be to put a salary freeze on incomes.
However, to attract the best-trained workers, businesses believed it was necessary to pay their employees well above any government-mandated level. The solution for many companies was simple: compensate for decreased salaries by offering health insurance coverage. This should have been a temporary cure; instead, for several reasons, employers became accustomed to the scheme allowing employer-offered health benefits to stick. Almost 70 years have passed since then and the workforce still faces restrictions on its economic liberty.
But times have changed. The national economy is doing quite well and there are still no salary caps.
This system of employee-sponsored healthcare coverage has persisted not because it is beneficial to the 180 million Americans, but because of the difficulty associated with changing the status quo - even if it is plainly unfair - coupled with employers' ability to write off the medical expenses by way of antiquated tax codes.
These practices have no place in a country that prides itself on being the utmost example of a viable capitalist economy.
Rather than continuing to let employers pay insurance companies directly, employees would have greater economic freedom if allowed to choose where their money can be spent for health care. Economic freedom is directly connected to political freedom. By stifling one's ability to spend one's own dough, the employer is suggesting that he knows better than his worker.
Liberty cannot be solely confined to non-economic actions. Otherwise, many more actions would be restricted, a predicament that liberal societies cannot stand for. It is a socialist state that restricts political liberty by taking away one's economic liberty, not capitalist. The health care system as it stands is un-American.
Among developed countries, America is alone in having employers pay for health insurance. It would be ludicrous to imagine a person taking a cut in salary to have a company car. Instead, most people would prefer to choose their own means of transportation. Likewise, people should be able to choose their amenities and the health insurance market is not divorced from this thought.
Another downside to the employer paying for health insurance is that this situation ties the laborer to his firm in an unhealthy manner. A person may not seek a relatively better job for fear of losing healthcare coverage. Moreover, sometimes the plans offered by the employer cover things that the employee does not need because they tend to offer blanket coverage even though any given employee's needs might require a tailored plan.
If a consumer were given the ability to choose his own health plan, the insurance providers would likely to cater to his needs. Instead of pandering to the employers, approximately 180 million Americans would be able to choose an appropriate health plan.
While it is true that no employee must accept insurance from his employer, it is also true that he will not be able to take the extra cash and look elsewhere for a more fitting plan. Clearly, this must change as every employed American should have the option of deciding where and how their hard-earned salary is spent.
A more competitive health care market would allow insurance agencies to cater to the individual rather than the company. Providers would be able to offer more options other than blanket plans that cover "everything." Conceivably this would even drive the premiums down, allowing more people to be insured in the long run.
Perhaps with an estimated 46 million Americans uninsured, this problem pales in comparison to others. At the moment, the solution for these millions exceeds the scope of this column. Nonetheless, the time has come for Americans in the work force to realize their economic liberty through increased salaries and their ability to choose their own medical insurance plan. One unfortunate policy does not excuse another unfortunate policy.
