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Last Wednesday the nation was riveted to the President's speech on healthcare
reform before Congress. While the President's concern for the uninsured is
no doubt sincere, his plan amounts to a magnanimous gift to the health insurance
industry, despite any implications to the contrary.
For decades the insurance industry has been lobbying for mandated coverage
for everyone. Imagine if the cell phone industry or the cable TV industry received
such a gift from government? If government were to fine individuals simply
for not buying a corporation's product, it would be an incredible and completely
unfair boon to that industry, at the expense of freedom and the free market.
Yet this is what the current healthcare reform plans intend to do for the very
powerful health insurance industry.
The stipulation that pre-existing conditions would have to be covered seems
a small price to pay for increasing their client pool to 100% of the American
people. A big red flag, however, is that they would also have immunity from
lawsuits, should they fail to actually cover what they are supposedly required
to cover, so these requirements on them are probably meaningless. Mandates
on all citizens to be customers of theirs, however, are enforceable with fines
and taxes.
Insurance providers seem to have successfully equated health insurance with
health care but this is a relatively new concept. There were doctors and medicine
long before there was health insurance. Health insurance is not a bad thing,
but it is not the only conceivable way to get health care. Instead, we seem
to still rely on the creativity and competence of politicians to solve problems,
which always somehow seem to be tied in with which lobby is the strongest in
Washington.
It is sad to think of the many creative, free market solutions that government
prohibits with all its interference. What if instead of joining a health insurance
plan, you could buy a membership directly from a hospital or doctor? What if
a doctor wanted to have a cash-only practice, or make house calls, or determine
his or her own patient load, or otherwise practice medicine outside the constraints
of the current bureaucratic system? Alternative healthcare delivery models
will be at an even stronger competitive disadvantage if families are forced
to buy into the insurance model. And yet, the reforms are sold to us as increasing
competition.
What if just once Washington got out of the way and allowed the ingenuity
of the American people to come up with a whole spectrum of alternatives to
our broken system? Then the free market, not lobbyists and politicians, would
decide which models work and which did not.
Unfortunately, the most broken aspect of our system is that Washington sees
the need to act on every problem in society, rather than staying out of the
way, or getting out of the way. The only tools the government has are force
and favors. These are tools that many unscrupulous and lazy corporations would
like to wield to their own advantage, rather than simply providing a better
product that people will willingly buy. It seems the health insurance industry
will get more of those advantages very soon.
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