Although I support the Hobby Lobby decision rendered by the US Supreme Court, the decision merely points to a bigger problem: employer based health insurance. As an IT professional I have frequently switched jobs or worked for myself, and the health insurance coverage available to me is expensive and often non-existent. I have bought health insurance on the individual market exactly as I do with my car insurance, and the fact that the individual market is regulated to death, provides little competition unlike the auto insurance market and is outrageously more expensive is puzzling. I can spend 15 minutes to save 15% on car insurance yet it would take me twice as long to find a provider in my area and determine which insurance products were available to me then cost me twice as much just doesn’t make sense.
Paul Waldman writing for the Washington Post points out that employer based health insurance is rare in the industrialized world and is the result of an accident of history.
The system has its real roots in World War II, when the government imposed wage and price controls. Although there had been some health insurance plans sold through employers before, when companies couldn’t offer increased wages during the war, they began offering health benefits instead. When the IRS ruled that those benefits didn’t count as income and so were tax-free, the momentum toward employer-sponsored insurance was all but unstoppable (the deduction for employer-provided coverage is now the largest tax expenditure in the federal budget, dwarfing even the mortgage interest deduction).
Waldman points out that through employer based health insurance I use pre-tax dollars to pay for the insurance whereas when I buy on the individual market I have to use post-tax dollars. This makes any health insurance I purchase on the individual market more expensive depending on my tax bracket.
Now we have the IRS involved in our health insurance system. What next? The EPA to regulate the amount of carbon dioxide we exhale? The NSA to handle our medical records? How about the VA to handle appointment scheduling? It seems to me you couldn’t design a worse health insurance system than the one we have today.
So conservatives shouldn’t cheer the Supreme Court’s decision to loudly and liberals should stop freaking out. Instead they should work together to end this crazy legacy of World War 2 so that companies can focus on making money and employees can take care of themselves as they see fit.
Update: Laurie Rice, writing for the Atlas Society, adds this:
(G)overnment involvement in the market is the reason why so many women have to get insurance through their employer in the first place. That government involvement in women’s health means today’s contraception victory is tomorrow’s political bargaining chip, to be traded by people like Kathleen Sebelius. That state power is more inescapable, more inflexible, and more insidious to women’s freedoms than any Hobby Lobby conservative craft store could ever be. Feminists need to embrace free-market capitalism.
Feminists need to embrace free-market capitalism? Given the alliance with Big Government and Leftism I’m not holding my breath.