A Rebuttal to The American Health Care Solutions Act (H.R. 3713)

The Republicans get part of a viable solution with this latest attempt at an alternative to health insurance reform. This rebuttal is based on the outline posted at the Congressional website of Mike J. Rogers (MI-8) on 02 Oct 09.

I agree that government run health care or anything else (except national defense) is not desired. The bottom line is that real reform is needed, but, we need to deal with the root causes of the issue, not merely dance around the edges. What follows are positive critiques of the posted summary of the bill.

Pre-existing conditions: This should be handled in two ways. For the first 18 months after passage, the no exclusion for pre-existing conditions should be allowed as we transition to individual health insurance as opposed to employer based health insurance. But after the transition period, it would be necessary to allow private companies the right of refusal for those that wait too long to get coverage. Cancellation guidelines should be based on extreme consumer behavior (e.g. repeated drunk driving convictions), or lack of financial responsibility with respect to paying premiums.

Expansion of Federal block grants: The Federal government is $12 Trillion in debt. The last thing we can afford is MORE spending. Unless cuts are made elsewhere (refer to the 7th edition of the Cato Handbook for Policymakers for ideas), we cannot afford additional spending. Assistance to those that cannot afford their own insurance should be limited to Medicaid reformed as suggested below.

Create associations for small businesses: This is the basic premise that all in Government repeatedly miss. One of the root causes of the insurance issue is that for most Americans, health insurance is employment based. It is time to end this practice that became widespread during an earlier Socialist administration during WWII. Average Americans make the necessary decisions on their home, life, and automobile insurance, I am certain that they are competent enough to pick an appropriate health insurance policy. This would allow portability, reduce the burden on businesses large and small, and allow insurance companies to offer a wide variety of consumer based policies.

Allow purchase across state lines: This is on target, but only nibbles at the edge of the issue. According to research at the Heartland Institute, there are over 1900 state laws that negatively impact the free market forces that would dramatically lower costs and prices of not only health insurance, but health care services as well. All these laws need to be reviewed and dealt with in a logical manner. Those in state legislatures and state insurance bureaus need to learn that most Americans do not want nor need them to define the content of their insurance policy. Setting basic content analogous to Personal Liability and Property Destruction for automobile insurance could be agreed to nationwide. The rest of the content should be optional and left to the consumer.

Tort Reform: This part is on target and much needed. Special Medical Courts, Loser Pays, and limits to pain and suffering awards are but a few of the parts of tort reform needed.

Health Savings Accounts: This is one of the best things to come out of the Bush years (after our safety in the war against Islamofacism). Expanding these would help families manage their own health care without the need for government meddling at the state or national level.

Discounts for Healthy behavior: Skip the employers, allow the insurance companies the ability to set rates based on the consumer’s behavior. Analogous to discounts for auto insurance for a good driving record, this is only good business and a foundation to free market capitalism.

Medicare Medicaid Fraud: Reform all government programs from fee for service to insurance premium assistance. This would eliminate 80% of the fraud and make managing the programs much easier. It would also allow market forces to help set prices of services, not bureaucrats in Washington.

“Transparency Portals”: Is this something from Star Trek??? By allowing individuals and families to manage their own insurance without being related to employment, this (whatever it is) becomes unnecessary. Cut the cord to employment based health insurance.

It is time for those in government to realize, that the vast majority of Americans do not need them to “take care of them”. Free markets work, excessive government interference leads to failure. Limited regulation is acceptable, but most don’t need nor want basic decisions made for them by Congress.

Have you seen the approval numbers for Congress lately? Congress needs to stick to the enumerated powers and get those right. And, oh yeah, cut overall spending to 90% of revenues collected in the previous tax year.