Getting Down to Brass Tacks

The health care reform debate seems to be finally getting down to the two issues that people are most concerned about. The argument over whether premiums are affordable and whether those who are high risk or have preexisting conditions are insurable, are the two major concerns of most Americans.

As I wrote in a previous blog, these very concerns are being addressed in auto insurance and medical malpractice insurance through the use of Joint Underwriters Associations (a.k.a. reinsurance pools). there is no practical reason why such a proven successful model should not be duplicated for health insurance. The question remains, what would be the motivation of politicians who wish to create another large governmental entity when a proven solution that does not require massive infrastructure is right in front of their eyes?

To believe the current administration, the solution is government involvement. The President himself has used the metaphor of UPS/FedEx/United States Postal service and an analogy of the "Public Option" to Medicare and the Veteran's Administration. I cheered the usage of these comparisons, as it almost seemed that the administration wanted to reverse its course. The President admitted that it is the USPS that is struggling more so than UPS or FedEx. This is because a government run agency simply can not be as nimble, or contain costs as easily as UPS and FedEx. Postal rates have consistently risen while services are in effect being rationed through a reduction service. However, poignant the metaphor, I am sure he did not intend to relay the truth as he did. Medicare and the VA have been praised as successful government programs (remember "public" is less threatening synonym for government). However, they are a prime example of cost over runs. The VA despite the dedication of many professionals, simply can't avoid the bureaucracy that comes with anything government run.

The final piece to the puzzle would be an elimination of the employer sponsorship of health care plans. With the issues of high risk/preexisting conditions resolved through JUAs or reinsurance pools, there is no reason that health insurance can not be purchased in the same fashion as every other type of insurance. The question as to why liberals cling to governmental ownership also raises the question as to why conservatives are not quick to get rid of employer sponsorship. Competition, as with the auto insurance industry, is what controls costs and improves service. The answer is right in front of you.

Politicians just have a knack for making the easy appear difficult, rather than making the difficult appear easy.