Left-leaning policy wonks, Democrat politicians, and the establishment media have tried to create the impression that only government intervention can resolve the “crisis” of American health care. However, as David Hogberg points out, they have ignored some interesting and significant free market innovations:
As of late, there are some very hopeful developments, ones that move our health care system away from one that is mismanaged by the government and toward one that is more market driven.
Among the most interesting of these developments is the reform legislation enacted by the state of Missouri:
Missouri has passed reform that expands free markets by changing the tax treatment of health insurance for those who purchase an individual policy. Called the “
Missouri Health Insurance Portability and Accountability Act,” it moves the insurance system in Missouri from one that is employer-based to one based more on the individual.
Hogberg’s article discusses a variety of other hopeful free market reforms as well. The full text can be read at the American Spectator.
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Well, I really don’t think HSA’s and HDHP is the end all be all solution to our countries Healthcare issues. With that being said, HSA’s definitely has its merits and the article does point to some positive actions that can be taken to help Americans deal with the healthcare costs.
“Universal Health Care Choice and Access Act,” all Americans would be eligible for a $2,000 tax rebate, $5,000 for families. This money would be paid directly to the patient’s health insurance. This would allow patients to make their own medical decisions. If the patient uses a cheaper health insurance company, the excess money will be deposited in a Health Savings Account (HSA).”
So basically the government is going to pay your insurance premiums through a tax rebate and if your yearly premium is less then your rebate the excess monies are deposited in your HSA. 1. What if you don’t have an HSA, where does the “excess” money go? 2. You will need those rebates because we all know cheaper health insurance translates into better coverage. Plus “cheaper” does not translate to affordable 3. This works great for the young and healthy (which HSA’s are geared toward) but does nothing to address the 20% of the population that account for 80% of the costs.
“Missouri Health Insurance Portability and Accountability Act,” it moves the insurance system in Missouri from one that is employer-based to one based more on the individual. First, under the new law employees working in small businesses can purchase their own individual policies and can pay for the premiums pre-tax by funneling them through a federal regulation known as “Cafeteria 125.” It also permits small businesses to make pre-tax contributions to the individual insurance plans purchased by their employees. This increases health insurance portability — employees can take their insurance policies with them from job to job knowing that their premiums will be pre-tax and that their employers can contribute to them. This is the type of reform that other states should be considering.”
This is a great idea as long as it comes with the same protections as group coverage does, like ERISA and HIPPA. The Individual market is ripe for abuse and gives no protections to the consumer. People, just because you have insurance does not mean you are covered.
“On of the big promises of HSAs is that they would cut down on unnecessary care. An article from the Journal of the American Medical Association from March of this year suggests that they are doing just that. The authors examined emergency room use (the most expensive type of care) among those with high-deductible policies and those in a traditional HMO.”
There is no doubt that HSA patients will be either more proactive or inactive in their healthcare choices. Active in that some patients will be more conscious of costs and the quality of healthcare. Inactive meaning that some patients will not be able to afford all the out of pocket expenses….. especially if they are utilizing that “cheaper health insurance company” LOL.
Posted 11 Sep 2007 at 2:55 pm ¶So basically the government is going to pay your insurance premiums through a tax rebate …
Scott, a tax “rebate” is when they give you some of YOUR OWN MONEY back. The government isn’t “paying” for anything here.
The Individual market is ripe for abuse and gives no protections to the consumer.
Ah … are you under the impression that “abuse” doesn’t occur in government-controlled enterprises? If so, you might want to check into the history of the 20th century.
Inactive meaning that some patients will not be able to afford all the out of pocket expenses …
You missed the point here. The utilization went down on non-emergent cases. In other words, when people have to pay, they won’t go to the ER for a runny nose.
Posted 11 Sep 2007 at 3:31 pm ¶‘a tax “rebate” is when they give you some of YOUR OWN MONEY back. The government isn’t “paying” for anything here.’
Out of interest, how will you make up the shortfall in tax revenues, or what will be cut?
Posted 11 Sep 2007 at 4:16 pm ¶“Scott, a tax “rebate” is when they give you some of YOUR OWN MONEY back. The government isn’t “paying” for anything here.”
Thanks for clarifying. The article wrote” all Americans would be eligible for a $2,000 tax rebate, $5,000 for families. This money would be paid directly to the patient’s health insurance.” I wrote “So basically the government is going to pay your insurance premiums through a tax rebate” I just summarized it a different way, sorry for the confusion. However I still don’t understand why the government would pay the insurance company directly with my rebate. Why not put that rebate directly in the HSA so that someone has the chance to earn interest (tax free) while paying for qualified healthcare expenses; like say a premium.
“Ah … are you under the impression that “abuse” doesn’t occur in government-controlled enterprises? If so, you might want to check into the history of the 20th century.”
No, I am not under any such impression nor did I imply that government-controlled enterprises are free of abuse. I merely said that group health plans have protections in place for the consumer, for which individuals insurance lacks.
“You missed the point here. The utilization went down on non-emergent cases. In other words, when people have to pay, they won’t go to the ER for a runny nose.”
I said “Active in that some patients will be more conscious of costs and the quality of healthcare.” No, I got the point. However you missed mine.
Posted 11 Sep 2007 at 7:28 pm ¶Out of interest, how will you make up the shortfall in tax revenues, or what will be cut?
First, the shortfall in tax revenue is nowhere near as harmful as most people believe. We have run deficits for most years since WWII, and the country enjoys a level of prosperity unheard of in human history. Hell, even our poor people are fat.
But if it were up to me, the cuts would come out of bloated bureaucracies like the utterly useless Department of Education. I would also cut out “arts” funding, the subsidies we dish out to NPR and PBS, and I’d stop giving absurd amounts of money to the U.N.
Posted 11 Sep 2007 at 7:41 pm ¶Right - government is “the enemy” and big business is the little guy’s pal. You can always trust big business to care for more than profits.
We’ve already got market driven health “care.” It’s been rolling over people for a few decades now.
About half the nation got sold a bill of goods through the combined efforts of the health insurance lobby - last I checked the biggest in DC - and the politicians whose campaigns they help finance and who allow them to essentially self regulate.
When either government or business has too much power, the interests that are served are those of the elite at the direct expense of ordinary citizens.
Posted 19 Sep 2007 at 4:38 pm ¶We’ve already got market driven health “care.”
No, Paul, we do not have a market-driven health care system. The government controls 50% of health care spending, and it has used the power of the purse to impose an absurdly cumbersome layer of regulation on the system. Most of what makes you and others unhappy about the system can be traced back to that morass of red tape.
Posted 19 Sep 2007 at 4:48 pm ¶Post a Comment