March 26, 2010

ONE OF THE GREAT IRONIES OF THE HEALTH DUST-UP...:

Fix Health Reform, Then Repeal It (PAUL RYAN, 3/26/10, NY Times)

Health care experts across the political spectrum acknowledge that a fundamental driver of health inflation is the regressive tax preference for employer-based health insurance. This discriminatory tax treatment lavishes the greatest benefit on the most expensive plans while providing no support for the unemployed, the self-employed or those who don’t get coverage from their employer.

Reform-minded leaders like Senator Ron Wyden, Democrat of Oregon, and Senator Tom Coburn, Republican of Oklahoma, pushed legislative proposals that would directly address this issue. I helped write a plan that would replace the bias in the tax code with universal tax credits so that all Americans have the resources to purchase portable, affordable coverage that best suits their needs, with additional support provided for those with lower incomes. All these ideas, though, were dismissed early on, as they didn’t fit with the government-driven plan favored by the majority. But going forward it’s important that we reconsider this regressive tax issue.

Then, when helping Americans with pre-existing conditions obtain coverage, we should focus on innovative state-based solutions, including robust high-risk pools, reinsurance markets and risk-adjustment mechanisms. I intend to continue advancing true patient-centered reforms like attaching tax benefits to the individual rather than the job, breaking down barriers to interstate competition, and promoting transparency and consumer-friendly coverage options.

We should ensure that health care decisions are made by patients and their doctors, not by bureaucrats, whether at an insurance company or a government agency. By inviting market forces into health care, we can encourage a system where doctors, insurers and hospitals compete against one another for the business of informed consumers. [...]

The case for attempting health care reform was not difficult to make. Skyrocketing health care costs are driving more and more families and businesses to the brink of bankruptcy, leaving affordable coverage out of reach for millions of Americans and accelerating our path to fiscal ruin. The challenge was how to deal with the seemingly inexorable increase in health care costs.

Yet the Congressional majority went at this goal backward: with the force of the federal government, cover all Americans — then figure out which screws to twist to contain costs.


...is that when the GOP reforms the system they'll make it more universal and more expensive (as a matter of federal dollars spent), in order to re-introduce and get the full benefit of market forces.

Posted by Orrin Judd at March 26, 2010 5:56 AM
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