Nancy Pelosi is starting to come out of her coma and see reality. She does not have the votes to pass her beloved “robust” public option version of the so-called health care reform legislation.
Meet the new “Public Option” – same as the old public option, but with sugar on top.
A watered down version of a public option is now the talk of the House. It only differs by allowing doctors to negotiate reimbursement rates with the federal government. I am not sure how this makes a big difference. A bunch of doctors versus the Federal Government (all 10 trillion pounds of it)? No contest – feds win. But I digress.
None of these so-called reforms will help. They might get 95% of the population “covered” by either private or public health plans – but care will be worse, doctors will become more scarce and care will be worse. Bank on it.
None of the reforms control costs as well as a freer market (note that I said freer – not free). With Democrats and other government control types in charge – extra regulation is a given. No one will have pre-existing conditions so all companies will have to accept all comers. Even people who sit around without care and then sign up after they find out they have a very costly condition.
Good luck keeping the rates down at that point.
Tax rates will rise to “pay” for the carnage
Better find a way to pay to bail out the big insurance companies when they start to fail. Better find the tax revenues and spending cuts to pay for all the new enrollees to the new “Public Option”.
A better way – a conservative approach
Here is a suggestion – go with the conservative definition of a public option: allow personal health savings accounts and 401K style business health savings plans. Let every American buy his or her own policy to cover themselves and their families. Also – let them pay for services for routine maintenance and “well visits”. Cut down the cost of paperwork and payment processing by having people pay for their services and care from the savings accounts. Individuals can then pay for lower cost “insurance” to cover the unexpected expenses associated with unexpected health ailments. The savings remains in the accounts of individuals to save to a rainy day.
“But Russ, what if they don’t have enough money to pay for the care,” you ask with a sniff and a whimper?
No problem – just have the IRS add a tax-deductible amount of income for care. Perhaps a “robust” $5,000 per person or $15,000 per family. Make it ready to access for family income levels below whatever political threshold the politicians care to decide.
Once the cash is in the accounts, people will get to decide what to do with the cash. So long as it is for “qualified” stuff (health care related) then it remains tax-free. If not – tax the hell out of the funds. Penalize people too – democrats should love that one.
Look, it stands to reason that fraud and waste makes up 37% of the $800 billion is annual “waste” in our medical system (according to a report by Thompson-Reuters). Since very large companies (and the government) run these programs, small amounts of “leakage” is acceptable. A $20 overcharge is the same as zero when you spend hundreds of millions, or billions of dollars annually. But to the average American, that $20 on a visit will most certainly be noticed. In fact, bills will be scrutinized before the patient leaves the office. Most important, overcharges will probably be disputed and corrected before it is ever paid.
That is the magic of the market. People will buy what they think is the best value for their dollar based on their own priorities. The alternative leads to draconian measures and a general sense of enslavement to a faceless, nameless “system”.
I choose freedom. It comes with responsibility and it has its risks. Whether it is a war on terror, tyranny, addiction to drugs, or for our freedoms and liberty – the responsibility does not change.
Remember, we have a rendezvous with destiny. It is always a time for choosing. Choose wisely.
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