To the People

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or TO THE PEOPLE.

Tuesday, May 29, 2007

Obama Gets the Health Care Problem Exactly Wrong

There is no doubt that there is a health care crisis in the US. We spend about $6,700 per person on health care, or 16% of GDP, yet 43 million Americans lack health care. As a comparison, the UK has similar tax rates, and lower ones on business, but manages to also fund the National Health.

Barack Obama has a plan to help the uninsured, but, unfortunately, it does not address the core issues of expense and repeats the folly of the US tax policy that made health insurance the province of employers and caused the problem to begin with.

The major cost accelerators in health insurance plans are the state-mandated coverage minimums. In Massachusetts, an independent business owner needs to pay for a policy that covers in-vitro fertization and podiatry, victories for both of those lobby groups. The only way to get to affordable health insurance is for the states to allow true competition and market rates for applicants. It ought to be a market in which customers select the things that they are covered for and pay a resulting premium. In home insurance, car insurance life insurance and just about any other insurance you can select your risk and pay for it. The average Joe should be able to purchase health insurance on the free market and pay accordingly for his own risks.

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