Can the Market Keep Up its Momentum?

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  1. Jay says:

    US Healthcare costs are too high and outcomes could be betetr. Agreed. But why would putting government in control of these issues solve the problem? Free markets have time and time again shown their ability to reduce costs and deliver higher quality. So why is it that people trust the market to deliver cheap plasma screens, but when it comes to something ever more important like healthcare we all start to second guess free markets, to our own detriment? The reason healthcare costs are high and outcomes less than ideal is because of government, specifically the tax system that favors employer-provider coverage. This puts employers and their chosen insurance companies in the middle of most healthcare transactions. When patients aren’t choosing their insurance companies directly, they lose their ability to discipline the bad ones through their choices. Similarly, when patients aren’t paying for their medical procedures directly, even small ones (because of the ridiculously low deductibles employer insurance plans give), they have little incentive to discipline the healthcare providers to give cheaper and betetr service. In other words, the consumer choice model that drives the benefits we see in free markets has been taken out of the healthcare equation by government. The solution, therefore, is not to add another layer of government on top of this. Rather, the solution is to re-empower the healthcare consumer.It is very simple. Just fully privatize the delivery of healthcare and get rid of the employer-provided-health-insurance-favored tax system. Then provide healthcare vouchers (if we are feeling charitable), the size of which increases the poorer you are, with which to purchase health insurance. This addresses the problem of poor people not having access. But also leaves the market free to operate efficiently and compete for peoples $$s and vouchers.As to people with pre-existing conditions, the answer is charity. Insurance, by definition, protects against the *unknown* bad events. Once the bad event becomes known, however, such as upon being diagnosed with cancer, then we aren’t talking about insurance anymore. Now we are talking about straight up charity, paying for someone else’s known medical condition. We can set aside some money for this. But the solution is definitly NOT to mess up the health insurance market for everybody else, by trying to force what is charity into an insurance model (which is exactly what Obamacare does).VN:F [1.9.7_1111]please wait…


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