Question

If rising health insurance premiums, deductibles, copayments, and other out-of-pocket costs contribute to putting quality health care out of reach for millions of Americans.” If millions of Americans cannot afford their insurance premiums, deductibles, co-payments and out-of-pocket costs for quality health care; who will then pay these costs and how are they transferred to employers and taxpayers, how will this impact the economy??

Answer 1

In the given scenario, it is the government that will first pay the cost incurred, and then the government will arrange the funds by applying increased level of deductibles and payment burden upon the employees who earn a salary beyond a certain level and the employers who have employees who cannot afford to pay their own share of the premium and deductibles. So, it is the taxpayers and employers who have to share the burden and facilitate the funding, required to finance the payments required on behalf of the poor people. So, a new and additional deductions with another name for the social security and health care of the poor people, will be applied to these employers and taxpaying employees.

It will reduce the disposable income of the these taxpayers and employers will also get discouraged. It will reduce the consumption and investment spending. As a result, AD will decrease and economy will shrink. It all happens due to the rising cost and inadequately transferring the burden of one upon the other.