WHERE ARE THE NEW DEMOCRATS WHEN YOU NEED THEM? (via Mike Daley)

Poor, Not Dumb: A New Model for Sensible Reform of Healthcare (Linda Halderman, M.D., FACS, 12/06/07, Victor Davis Hanson: Private Papers)

There is a better way to help vulnerable Americans receive high quality medical care while protecting the taxpayer, without expanding an already bloated bureaucracy.

I propose that the $580 plus per month now paid for every man, woman and child covered by Medicaid would be more effectively, responsibly spent as follows:

1. Low cost private insurance plans are now available throughout the U.S. Instead of funneling $580 to Medicaid, a private health insurance policy with a $2,400 deductible could be purchased for less than $200 per month for most enrollees. Private plans for healthy, younger recipients often cost less than $100 per month.

2. To cover this deductible for those without resources, a Health Savings Account (HSA) would be funded according to poverty level guidelines now used to determine Medicaid benefits.

For example, Medicaid recipients at 200% of the federal poverty level would have their HSA fully funded at $200 per month to cover the entire deductible, with a sliding scale for those with somewhat higher incomes.

3. For high-risk patients with chronic medical conditions, a risk pool like California’s “Managed Risk Medical Insurance Board” would be used to obtain more affordable policies than would otherwise be available. This protects taxpayers from the expense associated with covering sicker patients while ensuring that coverage remains available for those who need it most.

Under this model of Medicaid reform, the worst-case scenario would bring the $7,000 yearly federal and state expenditure down to $5,000 for every person covered. For younger, healthier patients covered by the program, costs would be considerably lower.

Fully funding the HSA for the impoverished, especially the young, is not only the sort of wealth transfer liberals ought to support, but as the wealth in those accounts builds would empower the poor (or previously poor) for the first time in human history--which is likely why the Left disapproves.

Posted by Orrin Judd at December 7, 2007 11:36 AM