Straight Talk from Al Jacobs

 

 

MEDICAL CARE PROGNOSIS

 

Our nation’s health system is now facing a lot of trouble. I’ll spell out the problem. Medical care is increasingly costly while a growing number of Americans can’t afford it. Any solution will be tough, because it gets mixed up in the politics. It will mean our elected leaders will have to take more money from some of us to give it to others. And all the while those in the health care business will find themselves working more and making less.

Another complication is that we’ve come to expect employers to pick up much of the bill. The result: An increasing number of businesses are ridding themselves of employees and transferring their assets outside our borders, beyond the reach of regulators and tax collectors. And lastly, the effective tax rate on a middle class working American is nearing 50 percent. There’s little slack. Where will the extra money come from?

 

Here are my predictions for the future. As medical costs increase, benefits must shrink. As this happens, government will become ever more a presence, as a host of laws are passed. For the first time benefits will be tied to each patient’s income and assets. With this the rule, I foresee our nation becoming a single payer system, where an HMO run by the federal government is how it will be for all.

 

A final comment: For those of you who know how Medicaid works today, you now know how health care will work for everyone in the future.

 

 

Al Jacobs, a professional investor for nearly a half-

century, issues weekly financial articles in which he

shares his financial knowledge and experience.

You may view them on http://www.roadwaytoprosperity.com