Saturday, July 28, 2012

Instead of Obamacare...

Current polling shows that 52% of likely American voters favor repealing Obamacare while 43% oppose repealing the signature legislation of the Obama administration.  While this gap of nearly 10% is lower than it has been for well over a year, it remains clear that Americans generally oppose this sweeping overhaul in healthcare.  Mitt Romney has made it clear that he plans to repeal the law immediately if elected and several strategies have been identified for ways he can prevent its enactment pending an official repeal by Congress.  However, the Republicans should better communicate specifics on plans that could replace it.  Their approach to health care has to be more then simply repealing Obamacare.

The problems with Obamacare are numerous and serious.  I found a really nice overview here.  One is the deep-seated aversion Americans have to mandated products or services of any kind and the Constitutional precedent Obamacare sets by allowing Congress to use tax penalties to compel people to buy something they may not want or need.  Wait times and access to health care are issues in Canada and other countries with similar health care systems that people don't want to see in the U.S.  In Canada, the average wait in 2011 for an elective procedure was nearly 5 months.  Obamacare is also an expensive entitlement to add considering the exploding debt.  Finally, Obamacare may greatly influence treatment courses patients and doctors will be able to pursue.  Remember that report that came out a couple years ago recommending that women wait until age 50 to get mammograms?  There were strong emotions on both sides of the issue, but it ultimately brought new awareness to the potential risks of frequent mammograms for women to consider.  However, under Obamacare, these kinds of reports and recommendations could become new medical policy whether you like it or not.


In a country as prosperous as America, I agree that no one should be left in the streets without access to emergency care.  Another noble goal of health care reform is to address rising costs.  Some system is needed that provides catastrophic and maybe preventative coverage to everyone.  In addition, the costs of the medical procedures and medications people use should be transparent and there should be incentive to spend less.  Under Obamacare where the goal is to cover everything for everyone, there is no built-in competition to keep prices in check.  For the most part, this is the case for our conventional health care system, too.  Those with health insurance naturally seek out the most reputable, most qualified care available, because they don't have to pay the bill.  Alternatively, if there were a system of health savings accounts people used to purchase care, they would be more inclined to seek out less expensive options, which would drive costs down.  The closest I've seen to this kind of plan so far is the one already in place for the employees of Whole Foods.  I'm sure it would need a lot of tweaking, but it's going in the right direction.  I wouldn't mind a health care plan with much cheaper insurance than I currently have and a flat percentage copay for anything I choose to do.

Consider two things.  First, look at how well the market regulates the cost of procedures not covered by most insurance.  How many radio commercials have you heard for Lasik: "Do one eye, get the second one free!"    Imagine how expensive Lasik would be, even though you would have no way of knowing the exact cost, if it were routinely covered by insurance.  Imagine how much less a blood workup might cost if the prices were set and visible to everyone getting them.  Second, imagine how expensive auto repair would become if everyone had car care insurance and no one worried anymore how much their mechanic charged for a new set of brakes.  We need our health care choices to resemble a little more how we seek out car repairs.  In some cases, you find a mechanic you trust and you go with it.  Others get multiple quotes for major repairs and look for coupons and specials for routine maintenance.  You can go to the dealership, but no one is making you.


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