Reliable forecasters say that the cost of health insurance will increase by 8.5% in 2024. It is certain that employers and employees will each share in this increase. But the real impact will be seen in the shrinkage of our Gross Domestic Product (GDP) and the huge increase in our unfavorable trade balance account. In other words, prepare for many US manufacturing plants to be closed next year as companies look for lower cost locations for their plants. While we cheer on striking workers at GM, Ford, UPS and others we should also realize that successful strikes (where the employees win substantial compensation gains) raise the cost of their products or services proportionately. That’s in part how inflation happens. But let’s break this 8.5% increase down a bit. If you bought homeowners insurance for your new home, would you start your grill in the basement because you knew that you were covered for fire damage? Of course not…so why do you buy health insurance and then eat your way to obesity (40% of Americans are obese); why do you smoke or drink alcohol to excess; why do you use drugs that can disable or kill you; why do you smoke MJ and drive on the expressway; why do you drive 15 to 20 MPH or more over the posted speed limit; why do you not wear safety belts; why do you avoid life-saving vaccinations in the midst of a deadly pandemic? We could go on but you get the idea. Insurance should be viewed as a partnership. You buy coverage to protect yourself, your family and your possessions from accidental losses. And the insurance company extends this coverage protection on the assumption that you do not want to incur any loss so you’ll act prudently. So, why damage your body intentionally just because you have health insurance? Now you know why an 8.5% increase is expected next year; and you also know why America will NEVER be able to afford a National Health Plan. Other countries have tried the national plan approach and watched it strike out. But in our country we come to bat with two strikes already against us. We are our worst enemy in this game and until we change our habits we will continue to spiral costs upward.
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