The Big Things

"For 20 years, governors have come into this room and lied to you. Promised you benefits that they had no way of paying for, making promises they knew they couldn’t keep, and just hoping they were the man or women who wouldn’t be holding the bag.

I understand why you feel angry and betrayed and deceived by those people. Here is what I don’t understand – why are you booing the first guy who came in here and told you the truth."

Gov. Chris Christie, speaking to a NJ firefighters convention

Story from which this quotes comes from is at about the 5:45 mark in the video below.

Federal Government's Biggest Job?

Pop quiz. What's the biggest single job the federal government undertakes?
National defense? Nope.
Homeland security? Wrong.
Transportation? Not even close.
Law enforcement? No way.
Education? Getting colder.
Foreign aid? Are you kidding?
Nope, the biggest single thing the federal government does these days is ... cut checks.
Lots and lots and lots and lots of checks that go to individual citizens -- $2.3 trillion worth last year alone.

Read the rest of the article from aolnews.com

Is Free Really Better?

Despite health care being free in Canada, businesses are popping up in Canada and the U.S. that cater to Canadians looking to avoid the long wait times for medical services.

"Cross Border Access has been helping Canadians book appointments and negotiate fees for a variety of procedures in upstate New York. Unlike Canadian companies that have popped up offering similar services, this American operation charges a $200-a-year membership fee and connects patients directly with service providers.

_________________________
As long as wait times remain as long
as they are, Canadians who have
resources will do what’s best
for their own particular health.
If that means going south
of the border, they will.”
_________________________

Noting U.S. health care is a free-market system, the same diagnostic imaging scan can cost anywhere from $900 to $2,000. He said most Canadians probably wouldn’t realize that when they look to the U.S. after learning it could take months for their CT scan, cancer treatment or knee replacement in Canada.

“We don’t take any money from health-care providers in the U.S. and we don’t give any money to Canadian health care providers who refer patients to us,” he added. “Our only source of revenue is the membership fees from patients.”

While few up-to-date studies examining the prevalence of medical tourism among Canadians exists, an Angus Reid poll earlier this year found 40 per cent of Canadians said they would pay out of pocket to jump the queue and 42 per cent would leave the country to seek treatment.

Canadian Medical Association president Jeffrey Turnbull describes it as a byproduct of the Canadian system failing to meet the needs of its citizens. “As long as wait times remain as long as they are or even worsen, Canadians who have resources will do what’s best for their own particular health,” he said. “If that means going south of the border or another jurisdiction outside of North America, they will.”

Meanwhile, Michael McBane of the Canadian Health Coalition… argues wait times are often exaggerated and that medical tourism raises concerns about continuity of care and the appropriateness of treatments that may not be approved in Canada."

Read the entire article at The Times Colonist

Is free really better if you cannot access the services you need in a timely manner?

Benefit Costs in the Private Sector

"Employee benefits make up nearly 30% of compensation packages in the private sector, with insurance benefits comprising 8% of that total, according to 2010 research by the U.S. Bureau of Labor Statistics.

Overall, employers in the private sector allocated, on average, $19.68 per hour on wages and salaries, totaling 70.6% of compensation. BLS analysts found that legally required and insurance benefits constituted the largest benefits categories.

For example, private-sector employers spent $2.31 per hour worked on legally mandated benefits, which includes Social Security, Medicare, unemployment insurance and workers’ compensation. This category represented 8.3% of total compensation.

The majority of insurance costs ($2.24) stemmed from health insurance, which costs $2.10 per hour worked. The remaining balance was tagged for life, short-term disability and long-term disability. On the retirement side, defined benefit and defined contribution plans cost private-sector employers 99 cents, totaling 3.6% of total compensation.

Meanwhile, paid-leave benefits, such as vacations, holidays, sick leave and personal leave, averaged $1.88 per hour, which composed of 6.7% of total compensation. Supplemental compensation categorized as overtime and premium pay, shift differentials and non-production bonuses averaged 78 cents, totaling 2.8% of total compensation.

The research on benefits costs is outlined in the memo report Employer Costs for Employee Compensation for September 2010."

EBN

So mandated benefits (i.e. taxes) cost more than health insurance benefits (8.3% vs. 8%).