Healthcare: Paying for It

While my brilliant plan is certainly the only possible way to go (he said with a wink), there will apparently be some form of significant government sponsored healthcare reform or coverage passed in the relatively near future. No matter what plan is chosen, it will be expensive.

Those who choose an unhealthy lifestyle should pay for this. Rather than taking away choices, we should tax those things that are voluntary and universally recognized as unhealthy for everyone.

The tax should begin relatively small and should be set to automatically rise gradually but increasingly over 10 years to a point where the tax causes the bad stuff to be nearly prohibitively expensive. This should be made very clear so that all Americans have 10 years to develop a healthy diet or go broke. By gradually increasing the tax over time people will change their behavior at about the same rate. As a result, the tax should remain about the same as the stubborn pay for their unhealthy lifestyles to the bitter end, and fund the system.

If the government is going to pay for healthcare, then we should do our part. The problem is that we want our double cheeseburgers with Super-sized fries and a chocolate shake. This plan will not eliminate these options. Over ten years it will just make a “Value-Meal” cost $50 instead of $5.

So what are those things that everyone knows are bad for you?

Tobacco
Calories

That’s it. No one can argue that fewer of these two things will make us healthier and thus reduce health care costs.

Taxing “Calories” allows us to cover all the bad stuff you would otherwise target on its own: Alcohol, sugar, white flour, red meat. Over ten years the producers of these products will develop lower calorie versions that taste great.
• Beer will all be “light” and we will all be used to it.
• Hard liquor will become lower proof (80 to 60 to 40) with better ingredients to retain the taste. Fewer drunks would also reduce healthcare costs.
• Bison will gradually replace some cattle and beef will be leaner.
• We will eat more chicken and fish and maybe Ostrich.
• We already have many versions of substitute 0 calorie sweeteners.
• All soda will become “diet” soda and there will be no such thing as “regular” soda. Zero calorie soda will have no tax.
• Restaurants will serve smaller and healthier portions. Fettuccini Alfredo will either leave menus or be made with lighter milk because the restaurant will be hard pressed to afford the calorie tax on heavy cream.
The key is that it will take ten years. We will adjust gradually. We are innovators. We, the poor, middle class and eventually even the wealthy, will all learn to eat better, providers will sell smaller portions, and food producers will learn to make healthier food. We will adapt and innovate and be able to afford healthcare.

Tobacco: This is easy. Tax it at every stage of production. Seeds to cigarettes. Start with the significant taxes we impose now and gradually raise them over 10 years until a pack of cigarettes is $50 in today’s money. Each year 10% of smokers will quit or not start due to cost alone. In ten years, there will be no remaining tobacco products to purchase. Rehab will be the cheaper alternative.

Calories: This at least seems more difficult, but it really is’nt.
The tax would occur at the point where the US distributor sells to the US retailer, whether the retailer is a restaurant or a grocery store or a farmer’s market. The US distributor may grow the products or purchase the products domestically or overseas. Where they get them is not relevant.

Establishing the tax is also not difficult.
• We already rate meat based on how lean it is. The distributor can reduce his tax by trimming it closely. There is probably a simple way to do this that scientists understand.
• Produce is pretty easy. Broccoli has a pretty standard number of calories per ounce.
• Anything in a box has the calorie count right on the side panel.
• Sugary cereals, candy, ice cream, etc will go the Splenda route or become very expensive. Pure perfect ice cream will still exist for really special occasions.

In the beginning the tax will be relatively low. Twice each year it will go up a few percentage points for ten years. It should accelerate as the ten years nears its end. At the end of ten years it will level off at a rate that will seriously dissuade Americans from eating too many calories.

The only exception would be baby food for those under three years old. Babies need calories. Adults do not like baby food, so I doubt this will create a calorie abuse problem.

Combine this with cultural changes we are already working on. Eat less. Exercise. But every medical practitioner will tell you that you lose weight by eating fewer calories, not by exercise, though it helps.

For my five step plan, go to http://lipspeak.blogspot.com/

By the way, I am overweight and eat too much. I hate this plan . . . but it is still the right one.