Third and State

This blog post was authored by Jheanelle Chambers, an intern with the Pennsylvania Budget and Policy Center.

While many middle-class Americans are still struggling in a down economy, the 1% is doing quite well.

The Center on Budget and Policy Priorities has an eye-popping chart (right) showing that in 2009, despite the weak economy, the top 1% of households captured $1.32 trillion in gross income while the bottom 50% earned $1.06 trillion.

This blog post was authored by Jheanelle Chambers, an intern with the Pennsylvania Budget and Policy Center.

Temple University professor and National Federation of Independent Business economist Bill Dunkelberg writes in a recent Philadelphia Inquirer column that health care coverage should be more like auto insurance, covering catastrophic illnesses only — and not routine preventive care:

For me, what we call "health-care insurance" should be more like car or home insurance. Health plans should cover catastrophic illness, but not preventive care.

When you change the oil in your car, does your car insurance cover that? New tires? A battery? That's maintenance.

But if you have a serious accident, that is "catastrophic," involving potentially large and uncertain costs, and insurance covers that.

The problem with this approach is people are not cars. Regular medical check-ups maintain good health, and if a person waits until a minor illness turns serious, the cost of treatment is much greater. There is also strong evidence that preventative care increases both the quality and the length of people's lives.