Our healthcare system has a few problems.
It’s not in crisis, but there are some areas we could improve.
There are a number of people without health insurance, perhaps as many as 47 million, or 16% of the US population. It’s not clear whether that can be reduced to zero, or even if it should. Like the unemployment rate, the mobility of American workers will inevitably result in a bit of “friction” in the system.
There is some percentage of the US population which makes a conscious choice NOT to purchase healthcare. That number might be as high as 5%.
However, one of the most obnoxious elements of the healthcare bill now pending in congress has been the proposal to stigmatize, penalize, and forcibly enroll individuals who choose not to buy health insurance.
There’s been a charge that parts of the system are characterized by greed. There are for-profit healthcare providers, and for-profit health insurance companies, and they do seek to make a profit. This is not evil. The proper check on greed is competition, not government regulation.
In fact, it is impossible to eliminate greed by regulation. You can only temper, harness, channel, and control greed by creating a market in which there are incentives for efficiency. In short, the game must be structured so that greed impels competitors to seek to lower costs so they can increase their market share.
President Obama and the Democrats have set out to do just the opposite. They are about to replace a competitive market with a government-monopoly bureaucratic system.
The problems with the health care system are the result of too little competition, too much government regulation, and a structure that lets health care consumers spend other people’s money.
The solution proposed by the President will reduce competition, add government regulation, and allow health care consumers to tap and spend the resources of the federal government rather than their own.
It will make things worse, far worse, if it is adopted.
And the American people are beginning to realize it. Let us hope that Congress figures it out as well before they enact a system that would be a huge mistake that would likely wreck both our economy and the federal budget.