Since socialism didn't work for the Pilgrims and it won't work for us in health care, even if it's disguised as Obamacare, what are the alternatives?
Geoffrey Lawrence, fiscal policy analyst with the Nevada Policy Research Institute and fellow Write on Nevada blogger, has offered some excellent suggestions in a recent commentary he wrote, titled "Personal and Portable."
Geoff isn't the only one with great ideas, though. Check out these free-market thinkers for more ideas on how to improve American health care.
· Dr. Arthur Laffer, internationally renowned economist
· John Mackey, CEO of Whole Foods
· The Heritage Foundation's Fix Health Care Policy
· Dr. Regina Herzlinger, Harvard business professor and author of Who Killed Health Care: America's $2 Trillion Medical Problem - and the Consumer-Driven Cure
Geoffrey Lawrence, fiscal policy analyst with the Nevada Policy Research Institute and fellow Write on Nevada blogger, has offered some excellent suggestions in a recent commentary he wrote, titled "Personal and Portable."
Another important reform would change the tax structure surrounding health care benefits. So long as health insurance is tied to the job and not to the individual, there will always be a sizable uninsured population as individuals move from one job to another. That tax structure should change to give the individual power over his own health care decisions. Rather than allow only the employer to purchase health insurance with pre-tax dollars, the individual should be able to claim a tax exemption on the cost of any private insurance plan that he purchases on his own. If such a change in the tax code were implemented, private health coverage tailored to the unique needs of the individual would become much more accessible, as businesses transformed job-related health care benefits into higher wages instead.Read the full article to find out what other solutions Geoff suggests.
Geoff isn't the only one with great ideas, though. Check out these free-market thinkers for more ideas on how to improve American health care.
· Dr. Arthur Laffer, internationally renowned economist
· John Mackey, CEO of Whole Foods
· The Heritage Foundation's Fix Health Care Policy
· Dr. Regina Herzlinger, Harvard business professor and author of Who Killed Health Care: America's $2 Trillion Medical Problem - and the Consumer-Driven Cure
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2 comments:
Would you consider the current system free market? Do you consider it to be working? Let me rephrase that. Do you consider it to be working for everyone?
Hey Ann,
No I don't believe the current system is a free market. There are several problems, but the biggest two are the tax code and government mandates.
The tax code allows employers to purchase health insurance for their employees with pre tax dollars. If an individual tries to purchase insurance they have to use after tax dollars.
So we have a system where employers pruchase insurance for their employees. Now I like my employer and all, but they don't know what my priorities are in terms of medical insurance. (Imagine if your employer bought your house or car!) Especially when they have to purchase a plan that covers not just me, but all the employees.
Now this means the market for insurance is messed up. Instead of trying to please me (the user), insurance companies try and please companies (who buy the policy).
If I don't like my car, I'll sell it and use a different company, but if I don't like my insurance I'd have to quit my job. Even if I got hired somewhere else, I wouldn't have control over my insurance.
Also, because insurance is tied to your employer, the length of insurance poolicies is limited. In Switzerland, they have policies where if you are in as good of health or better after 5 years, you get half your premiums back. But that policy doesn't exist in the US, because no employer is going to buy a five year policy for an employee who might leave in 1 year.
The second problem is government regulation. The government regulates that insurance policies cover a host of treatments. (Leaving aside controversial policies like abortion - I'm focusing just on the cost issue)All of these required treatments cost money and raise the price of insurance. In a free market there would be no mandates from the government, only individuals choosing a policy with coverages they want and are willing to pay for.
Also, the government (not sure if it's state or federal) doesn't allow a Nevada resident to purchase insurance from California. This artifically limits the risk pool (raising costs) and limits competition (which would drive prices down).
Another big issue is the cost of medical malpractice insurance. Random - did you see this quote by Howard Dean that tort reform isn't in the bill, because the authors of the bill didn't want to take on the trial lawyers? http://www.washingtonexaminer.com/opinion/blogs/beltway-confidential/Dean-says-Obamacare-authors-dont-want-to-challenge-trial-lawyers-55140567.html
Amazing.
Is the system working for everyone?
No the system isn't working for everyone (or really for most people) for the reasons I detailed above.
But the solution to the problems isn't more government, it's getting rid of the government rules and regulations that have caused the problems in the first place.
And I sympathize with people who want to get everyone in the US medical insurance, but there isn't a hidden supply of medicine and doctors somewhere. Just because everyone is covered, doesn't mean there will be enough treatment to go around. This is one of the reasons why you have shortages (ala the UK not having enough beds for pregnant mothers - blog post coming soon) in a socialized system.
In a free market, though competition and profits lead individuals to provide more medicine and doctors. This makes medicine cheaper and spurs innovation -- which greatly helps everyone.
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