Healthcare System Leads to Health Benefit Cuts

This article is about General Motors (GM) wanting their employees to give back some of their health benefits, which will make the employee pay more for healthcare. But the key point is GM only wants employees to give their benefits back in the US and not in Canada. The reason is because the United States healthcare system is controlled by private companies with little to no involvement by the United States government. Canada uses a system that is controlled by the government which lowers healthcare costs for companies like GM. In the United States, $6,800 is the average amount that is spent per employee on healthcare benefits. That’s the reason companies like GM are asking for employees to give back some of their benefits and initiating research into the Canadian system. One reason the United States hasn't gone to a Canadian style system is because 15.1% of their GDP is spent on healthcare and getting rid of that would upset companies. Since US citizens that don't have healthcare benefits have to spend a lot of money on insurance, distribution of income comes into effect. Distribution of income shows how much people make which helps to determine how many people are living in poverty.

Since healthcare is not an unmet public good in the United States, it is hard to determine if the government should play a role in healthcare. But an argument for government involvement is the effect of distribution of income. Distribution of income allows certain people to be able to pay for private healthcare while some cannot. Companies like GM are cutting back their healthcare benefits because it costs too much. But most employees who work in plants and make cars aren't high earners, which affects them because they have to pay a high amount of their money on healthcare. Many people are then forced to either pay for insurance and possible live in poverty or take a chance and not buy insurance. In that case, the government should be involved in a market economy because the distribution of income leaves many people not being able to afford insurance. If companies are going to cut back on healthcare benefits, the government has no choice but to enter the market since distribution of income leaves some people in poverty.

In my opinion, a two tiered system where high earners with benefits can choose private healthcare and where people living in poverty can get service given to them by the government is the best option. Their will be less strain on the public system since they will have less customers and tax payers money can be spent on other things. The only problem is the private section will most likely pay more money to doctors and nurses which will put a strain on public workers. In the future, I think the Canadian healthcare system will allow certain private companies to enter the market but they will be regulated, which already happened to a private clinic in BC. But I don’t see this happening in the United States which will lead more companies like GM to lower health benefits.
http://www.inthesetimes.com/site/main/article/2081/