The Trouble with Health Care – A Lack of Innovation and Resolve
The United States of America was one the global leader in medical research and innovation. As of 2015, we’re in decline in this sphere, opening the way for other global powers to take the lead.
Since 2004, medical R&D funding has declined by 13% since 2004, and this issue is compounded by the insane taxation of drug and research companies in the U.S. How can we expect to provide those who require advanced techniques, medicine, and specific care to those who need it most, when we don’t invest in the companies which make a real difference in lives? Which save lives?
The responsibility for this can be laid squarely at the feet of politicians who helped implement the Affordable Care Act, and still defend it to this day, under which these companies suffer an additional tax.
Long term implications
The income tax rate on these companies is 38% in comparison to the 15% in other countries. In fact, there’s evidence that global powers are luring top researchers and scientists out of the U.S. with the promise of better pay and less taxation. These countries offer incentives for R&D while the U.S. has kept the R&D tax credit temporary. Only 0.3% of our country’s research expenditures is spent on health services. The need for innovation is outstripping the rate at which we can fund it.
What does this mean? Investors who would usually look to these companies in the U.S. are turning away because of the long-term implications involved. Instead of investing in the United States, they’re turning to Asia – our number one competitor in this field.
America has a lead on medical innovation
Medical innovations such as surgery for heart failure, antidepressant drugs, eye surgery for cataracts, cholesterol reducing drugs, and scanning techniques such as MRIs, are all American innovations. These are all created and made by American researchers and companies.
These are the innovations which set our country apart from others in the healthcare realm and provide our people with the best healthcare available. The best doctors, nurses, medical staff, and drugs known to mankind.
All of this is in decline because of taxation under the ACA. If we don’t change this, the steady decline of R&D in our country will lead to a steady decline in the health of our citizens. People who once had access to the best healthcare in the world will have to leave the country. Which in turn they will pay more to get the treatment they need.
Lowering the quality of life
A decline in innovation, equals degradation of health care, which in turn equals the denigration of the quality of life of the American people. Lower quality of life means a less motivated work force, and that will lead to less innovation. Thus, the cycle continues.
We need to cut this off at the source. The Senate and the House of Representatives needs to act and end the reign of the ACA before it’s too late. If the lack of affordable health care for American citizens, and the unfair taxation of research and pharmaceutical companies isn’t motivation enough, then I’m not sure what is.
It boggles the mind how this is still an issue in 2017. When Senators and Representatives themselves suffer from chronic conditions and are treated with drugs developed and innovated in America. In the decades past and prior to the stringency of the ACA.
End the ACA before the ACA ends the American people. We need a better solution for drug and research companies moving forward, and thus the men, women, and children who need care the most.
written by Charles Laverty