I know there's been a lot of back and forth over the health care bill and what not, but rather than simply adding to the justifiable anger already expressed, I propose to offer an alternative to the current plan.
Now, I'm going to go ahead and state that this is by no means an expert plan nor is it perfect. I'm just going to offer up my opinion and see what folks think.
Health insurance in general is stupid. People should pay for their own medical bills just like they pay for their own mortgage, car, and whatever else you buy in a free market economy. The only insurance that should be available in any market is catastrophic coverage for the unpredictable medical bills. Any "free" service is bound to be abused in either the private sector or the government, so the best way to keep costs down is to actually let the free market take hold and compete.
In an amazing way, cosmetic surgery has had almost no price fluctuations other than adjusting to inflation in the past decade. Why? Because practically no insurance plans cover it. Patients have to pay out of pocket and plastic surgeons have to offer competitive rates to reflect that reality.
Meanwhile, all other health care costs have skyrocketed. Why you might ask? There is no established market value. Since everything is covered by insurance or the government, there is virtually no competition and subsequently no "invisible hand" to keep prices in a state of reality.
A great analogy would be a hypothetical "grocery insurance". Suppose an insurance company covered all your grocery bills for a certain premium. Would you show any restraint in what you buy? Would you spare any expense? Would you set a limit on the quantity of goods you buy? Answer: No.
And now everyone understands why a "free" lunch costs so much and why a system of comprehensive insurance via the private sector or government is a farce.
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Now for my solution to the health care issue:
1. Mandate individual private insurance for the coverage of catastrophic medical bills. This reduces costs for everyone by preventing drive-by patients that rack up huge medical bills for everyone else because they don't have insurance and can't afford to cover their own costs. Think of it as the liability auto insurance of health care.
2. Mandate individual private health care savings accounts. These accounts typically in practice require citizens to set aside around $1500 a year for deposit into an account for general health care expenses. Accounts could only be tapped for medical expenses but upon the death of the account holder the assets would be unfrozen for the next of kin to inherit. This would ensure that there are no excuses for why you can't pay your own bills. People who can't afford the annual deposit would receive tax credits instead to cover the costs. In other words, microscopic Medicaid.
3. Eliminate Medicare and most of Medicaid. We wouldn't need these entitlement programs anymore. Also worthy of mention is that these programs are currently on the verge of bankruptcy and that Medicare liabilities currently EXCEED the total net worth of the United States!
4. Initiate TORT reform. In other words, place caps on the amount of money a plaintiff can sue for doctor malpractice. One reason doctors charge so much for their services is because their malpractice insurance premiums and legal fees are astronomically high. This would stop the predatory lawyers from victimizing every patient and turning every minor mistake on the part of a doctor into a multi-million dollar settlement.
5. Make the insurance market a national market. Currently, there is absolutely no competition among insurance companies across state borders. By dissolving these borders, you would eliminate the monopolization of a state's insurance market by one company and allow competition to bring prices down.
This five step plan has one simple purpose: make health care a competitive market. Doing so would drastically reduce prices and encourage personal responsibility in a nation that yes, offers freedom and choice with an acceptance of consequences in making choices.
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I think most people need to realize that you don't need a trillion dollar down-payment and a government takeover of one-sixth of our economy to solve the health care issue.
Just put together some common sense reforms and stop pretending as though massive quantities of debt are going to solve a problem.
Now, I'm going to go ahead and state that this is by no means an expert plan nor is it perfect. I'm just going to offer up my opinion and see what folks think.
Simple, Common Sense Reforms
Health insurance in general is stupid. People should pay for their own medical bills just like they pay for their own mortgage, car, and whatever else you buy in a free market economy. The only insurance that should be available in any market is catastrophic coverage for the unpredictable medical bills. Any "free" service is bound to be abused in either the private sector or the government, so the best way to keep costs down is to actually let the free market take hold and compete.
In an amazing way, cosmetic surgery has had almost no price fluctuations other than adjusting to inflation in the past decade. Why? Because practically no insurance plans cover it. Patients have to pay out of pocket and plastic surgeons have to offer competitive rates to reflect that reality.
Meanwhile, all other health care costs have skyrocketed. Why you might ask? There is no established market value. Since everything is covered by insurance or the government, there is virtually no competition and subsequently no "invisible hand" to keep prices in a state of reality.
A great analogy would be a hypothetical "grocery insurance". Suppose an insurance company covered all your grocery bills for a certain premium. Would you show any restraint in what you buy? Would you spare any expense? Would you set a limit on the quantity of goods you buy? Answer: No.
And now everyone understands why a "free" lunch costs so much and why a system of comprehensive insurance via the private sector or government is a farce.
-----------------------------------------------------------------------------------
Now for my solution to the health care issue:
1. Mandate individual private insurance for the coverage of catastrophic medical bills. This reduces costs for everyone by preventing drive-by patients that rack up huge medical bills for everyone else because they don't have insurance and can't afford to cover their own costs. Think of it as the liability auto insurance of health care.
2. Mandate individual private health care savings accounts. These accounts typically in practice require citizens to set aside around $1500 a year for deposit into an account for general health care expenses. Accounts could only be tapped for medical expenses but upon the death of the account holder the assets would be unfrozen for the next of kin to inherit. This would ensure that there are no excuses for why you can't pay your own bills. People who can't afford the annual deposit would receive tax credits instead to cover the costs. In other words, microscopic Medicaid.
3. Eliminate Medicare and most of Medicaid. We wouldn't need these entitlement programs anymore. Also worthy of mention is that these programs are currently on the verge of bankruptcy and that Medicare liabilities currently EXCEED the total net worth of the United States!
4. Initiate TORT reform. In other words, place caps on the amount of money a plaintiff can sue for doctor malpractice. One reason doctors charge so much for their services is because their malpractice insurance premiums and legal fees are astronomically high. This would stop the predatory lawyers from victimizing every patient and turning every minor mistake on the part of a doctor into a multi-million dollar settlement.
5. Make the insurance market a national market. Currently, there is absolutely no competition among insurance companies across state borders. By dissolving these borders, you would eliminate the monopolization of a state's insurance market by one company and allow competition to bring prices down.
This five step plan has one simple purpose: make health care a competitive market. Doing so would drastically reduce prices and encourage personal responsibility in a nation that yes, offers freedom and choice with an acceptance of consequences in making choices.
-------------------------------------------------------------------------------
I think most people need to realize that you don't need a trillion dollar down-payment and a government takeover of one-sixth of our economy to solve the health care issue.
Just put together some common sense reforms and stop pretending as though massive quantities of debt are going to solve a problem.
