Wednesday, July 15, 2009
All of this bureacracy in order to replace what would otherwise be a simple transaction between two people: the patient and his or her healthcare provider.
The "solution" to healthcare is to get government out, not give government total control. Government has distorted the healthcare market just as they distorted the housing market, by handing out subsidies (tax-free healthcare benefits) and by directly intervening in the market (medicare, medicaid).
If Congress simply eliminated the tax subsidy distortion, by either doing away with the employer-only tax deduction or by allowing everyone to deduct healthcare costs, and if they also eliminated artificial restrictions on the market such as mandated coverage and barriers to entry, we could probably solve 80% of the healthcare "problem" without creating so much as one bureaucracy. Just let the free market work, and it would fix things just as it has in countless industries every day. How hard is this to understand?
UPDATE: Keith Hennessey has written an excellent explanation of how the new healthcare mandate would end up shafting about 8 million people. "For those who do not or cannot comply with the mandate, they end up in the worst of all worlds – uninsured and paying higher taxes." This is simply outrageous, and it is one more illustration of how the government can't possibly "fix" healthcare by increasing regulations and imposing mandates. The subject is so complex that it can only be handled rationally at the individual level.
ONE LAST UPDATE: As this article explains, a healthcare mandate is unconstitutional.
Posted by Scott Grannis at 10:30 AM