Monday, November 30, 2009

The Health Care Follies Continue

Charles Krauthammer hits one one out of the park concerning health care reform...

The United States has the best health care in the world — but because of its inefficiencies, also the most expensive. The fundamental problem with the 2,074-page Senate health-care bill (as with its 2,014-page House counterpart) is that it wildly compounds the complexity by adding hundreds of new provisions, regulations, mandates, committees, and other arbitrary bureaucratic inventions.

Worse, they are packed into a monstrous package without any regard to each other. The only thing linking these changes — such as the 118 new boards, commissions, and programs — is political expediency. Each must be able to garner just enough votes to pass. There is not even a pretense of a unifying vision or conceptual harmony.

The result is an overregulated, overbureaucratized system of surpassing arbitrariness and inefficiency. Throw a dart at the Senate tome:

You’ll find mandates with financial penalties — the amounts picked out of a hat.

You’ll find insurance companies (who live and die by their actuarial skills) told exactly what weight to give risk factors, such as age. Currently, insurance premiums for 20-somethings are about one-sixth the premiums for 60-somethings. The House bill dictates the young shall now pay at minimum one-half; the Senate bill, one-third — numbers picked out of a hat.

You’ll find sliding scales for health-insurance subsidies — percentages picked out of a hat — that will radically raise marginal income tax rates for middle-class recipients, among other crazy unintended consequences.

The bill is irredeemable. It should not only be defeated. It should be immolated, its ashes scattered over the Senate swimming pool.

Then do health care the right way — one reform at a time, each simple and simplifying, aimed at reducing complexity, arbitrariness, and inefficiency.

...Insuring the uninsured is a moral imperative. The problem is that the Democrats have chosen the worst possible method — a $1 trillion new entitlement of stupefying arbitrariness and inefficiency.

The better choice is targeted measures that attack the inefficiencies of the current system one by one — tort reform, interstate purchasing, and taxing employee benefits. It would take 20 pages to write such a bill, not 2,000 — and provide the funds to cover the uninsured without wrecking both U.S. health care and the U.S. Treasury.
I think I agree with everything in this column, save for the possibly unspoken idea that the moral imperative of insuring everyone falls on government, although the reality of democratic government probably dictates that this will be the case, whether or not it should be. I'm not sure how I feel about it -- and plenty of liberals who find this to be a moral imperative are probably opposed to government imposing other moral imperatives on folks.

On a related note, Professor Bainbridge does a nice job of deconstructing the argument for using anecdotes to guide our health care policy. Meanwhile, the opposition to Obamacare continues to grow in polls. At this rate, it will probably be at 30% approval if it ever passes. I wonder if Obama wants to find a re-start button for this debate yet?

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