Writing in the July 3rd Wall Street Journal, Keith Hennessey outlines a strategy to repeal Obamacare and replace it with “market reforms.” You should remember those words “market reforms” as well as “consumer-based” as you will hear them frequently in coming months. You should also know that in the context of reforming the US health care system they are as meaningless as much of Obamacare is meaningless.
Here is what Mr. Hennessey says in closing his article:
Reform should start by replacing the tax exclusion for employer-provided health insurance with a flat tax deduction or credit. This should be combined with insurance reforms that allow consumers to buy portable health insurance sold anywhere in the nation, through their employer or on their own. That means you’ll be able to take your health insurance with you from one job to the next. Tax policy will no longer push Americans toward lower wages in favor of more expensive health insurance.
Top it all off with expanded contribution limits for health savings accounts, aggressive national medical liability reform, and structural Medicare and Medicaid reforms that dramatically slow the growth of government and deficits.
In 2009 and 2010 the nation took huge steps down a path toward more government control of health care. A shift to the consumer-based reform path is still available—if voters want it.
You see, it’s simple, just have average Americans pay more out of pocket for health care and they will cause the entire system to be reformed. Shop for health care as you do a new flat screen TV and everything is on the road to affordability. American “consumers” will cause the development of a national electronic records system, eliminate unnecessary care, raise the quality of care, manage physician and hospital fees, and all the rest that needs to be done. Ha!
Let’s give all Americans a consumer driven health plan with an annual family deductible of $3,000 and let them place three grand in an HSA; that will make them think twice about spending frivolously on health care, especially if the family income is $40,000. But wait, their premium will be lower as long as they can buy coverage from an insurer six states away, that insurer won’t be trying to cover its actual costs while trying to make a fair profit.
It’s simple! Wonder why we haven’t thought of this before? Wonder why Republicans didn’t do all this when they had control of Congress a decade ago?
QUINNSCOMMENTARY 