January 23, 2008
The health care reform bill appearing this legislative session will, it appears, be free of any mandates to own insurance.
The libertarian part of me is happy. But my more wonkish side wonders if a mandate-less, market-oriented health care reform package can really accomplish anything.
An effective health care reform package must include some provisions that address the rising costs of health care and insurance.
In a market-based system, one way do to this is to increase the number of insured people - especially young, healthy people who are unlikely to have major health issues. This allows an insurer to amortize costs across a large swath of people, thereby reducing premiums for the individual consumer (in theory).
Utah lawmakers have rejected this provision, though. The new bill, at least according to the Tribune, does very little to combat the rising costs of health care.
But even if the reform were to include mandated insurance, I wouldn’t be too confident of any sea change in the cost and quality of care in Utah.
Why? Because such market-reforms only extend the status quo, rather than dramatically altering the economics of health care. I’ve being reading a fascinating book Overtreated that suggests a serious reexamination of health care economics is long overdue.
If we are serious about reducing the costs of health care, the entire economic scheme of the system needs to be radically altered. As the system works now, costly invasive procedures are incentivized at the expense of far less expensive and often more effective preventative care.
January 24, 2008 at 11:10 am
I agree that to make any kind of reform the whole system needs to be changed. I believe that a national health care system is the answer, cutting out the HMO’s and letting the hospitals and doctors decide what is best for their patients.
Sort of national health care I believe another answer would be to give all Americans the same health care of the US legislatures. Pay what they do and receive the same benefits they do.
Or on a Utah scale, open up the Utah State employees health care to all Utahans. I work for the State and pay very little for health care. Why not allow anyone who lives in the state the opportunity to sign up on the same plan. This way businesses no longer have to supply insurance coverage, if someone changes jobs they don’t have to change insurance plans, therefore the “pre-existing conditions” don’t come to play.