By
emphasizing health savings accounts and consumer-driven solutions, we can
create a system that can cover everyone, while leading to lower costs and
continued innovation.
The
two biggest problems with our current system are runaway inflation, and the
fact that many people with serious pre-existing health problems can find themselves
uninsurable, particularly if they are self-employed or otherwise purchasing
individual coverage.
To solve the insurability problem, the new law requires that all plans be “guaranteed issue”. This will allow anyone to get coverage, but if they are buying Cadillac plans that cover everything with little consumer involvement, the result will be rising premiums and rising healthcare costs for everyone.
The
System Should Encourage Price Transparency
And Consumer Involvement
When no one looks at price (have you noticed that doctors and hospitals never post their prices), there is little pressure to cut costs and provide good value. So prices go up. Only by getting the consumer involved in making healthcare decisions can we address the real problem.
HSA plans are much less expensive than conventional health insurance plans. They also get the consumer involved in the decision process when it comes to purchasing healthcare. When consumers are comparing price and quality, businesses (including medical clinics and pharmacies) have to compete for those customers by offering lower prices, more convenience, and higher quality.
The System Should Reward Personal Responsibility
None
of us should burden others with our medical expenses if we can help it.
By offering a tax deduction every time you put money aside to cover future
medical bills, HSAs encourage us to set aside money to cover future medical
expenses. When we do this, we are not a burden to society. This
encourages us to be financially responsible citizens.
If
you have an HSA which you contribute to every year, and you stay healthy,
one day you’ll have a lot of money in that account. So HSA plans
also encourage us to be more responsible about our own health.
While
a major threshold has been crossed with the passage of the health care reform
bill, the discussion on health care reform is far from over, and the problems
are far from solved. We believe that emphasizing HSAs and getting the
consumer involved in their health care decisions (instead of a government
bureaucrat) are the two most important steps we can take to keep costs down
and make health care work for our society.
For
more information and commentary, please see my Healthcare
Debate Blog. You can also watch videos I've created on the U.S.
Healthcare debate at Healthcare
Reform Realities.
