Addressing John Mackey's Healthcare Reform Ideas
Given the amount of gnashing of teeth concerning John's piece in the WSJ. Plus, the several diaries either condemning him or saying progressives should back off because we are once again eating our own. I have decided rather than just rant I thought I would address John's ideas point by point. I do this hoping everybody realizes these are my opinions and mine alone. They do not represent the opinion of all liberals, moderates and I would guess not conservatives. Therefore I fully expect and hope the comments are your take on his ideas. Next I am not going to defend or condemn the Whole Foods boycott here. So here goes.
1) Equalize the tax laws so that employer-provided health insurance and individually owned health insurance have the same tax benefits. This I agree with. If a corporate citizen gets a break why shouldn't the individual. The other approach might be to take away the corporate break to help pay for the uninsured. Just a thought.
2) Repeal all state laws which prevent insurance companies from competing across state lines. This was a McCain idea, as well. The issue here is the risk pool. Allowing this type of portability more than likely will lead to insurers offering cheaper policies to low risk individuals and dropping all together those with high risk. End result we have done nothing for those that truly need insurance. Health Policy News
4) Enact tort reform to end the ruinous lawsuits that force doctors to pay insurance costs of hundreds of thousands of dollars per year. Sorry this a just a fallacy. Malpractice insurance settlement etc add less than 1% to the cost of healthcare. While any lowering of costs is a good thing I rather doubt this 1% will be passed back.
5) Make costs transparent so that consumers understand what health-care treatments cost. Couldn't agree more. But what he fails to address is that even by doing so are we enabled to negotiate these costs? If so how does one negotiate when you have a heart attack and it's either have the surgery now or die?
6) Enact Medicare reform. "We need to face up to the actuarial fact that Medicare is heading towards bankruptcy and enact reforms that create greater patient empowerment, choice and responsibility." I've include everything John wrote here, because he has offered up no concrete proposal. I'm just don't see how what he suggests saves or funds Medicare more so than what is being suggested already.
7) Finally, revise tax forms to make it easier for individuals to make a voluntary, tax-deductible donation to help the millions of people who have no insurance and aren't covered by Medicare, Medicaid or the State Children's Health Insurance Program. Now this is where it all falls apart for me. This is trickle down at it's finest. Does John seriously think that by increasing charitable deductions it is going to improve healthcare for the uninsured. This is Freidman at his worst. Now that said as an individual John does practice what he preaches, but he assumes (and we know what that does) that others will act as charitably or responsibly. If he really believes this maybe he should start a non profit health insurance company that is funded by tax deductible donations as well as very low premiums and proof his theory.
That's it, have at it.
1) Equalize the tax laws so that employer-provided health insurance and individually owned health insurance have the same tax benefits. This I agree with. If a corporate citizen gets a break why shouldn't the individual. The other approach might be to take away the corporate break to help pay for the uninsured. Just a thought.
2) Repeal all state laws which prevent insurance companies from competing across state lines. This was a McCain idea, as well. The issue here is the risk pool. Allowing this type of portability more than likely will lead to insurers offering cheaper policies to low risk individuals and dropping all together those with high risk. End result we have done nothing for those that truly need insurance. Health Policy News
The fact is, such a change may end up benefiting only those who are young, fit, and healthy - people who are low-risk in the eyes of insurers, and who can have their pick of policies. Anyone who is moderate or high risk will eventually find that getting affordable insurance, or perhaps even any insurance at all, becomes much harder.
This may seem counter-intuitive. After all, surely opening up the market will mean everyone has a better shot at getting affordable insurance. The problem is, however, to an insurance company risk is still risk. The perceived risk of an individual who is fifty years old, overweight, and a smoker won't decrease just because that individual can buy insurance anywhere in the country.
And if an insurance company can offer cheap premiums to entice low-risk people from all over the country, they're that much less likely to continue offering any type of insurance to higher-risk individuals.
3) Repeal government mandates regarding what insurance companies must cover. Seriously?To my thinking this will only increase insurance company cherry picking and throwing more people into financial trouble.
4) Enact tort reform to end the ruinous lawsuits that force doctors to pay insurance costs of hundreds of thousands of dollars per year. Sorry this a just a fallacy. Malpractice insurance settlement etc add less than 1% to the cost of healthcare. While any lowering of costs is a good thing I rather doubt this 1% will be passed back.
5) Make costs transparent so that consumers understand what health-care treatments cost. Couldn't agree more. But what he fails to address is that even by doing so are we enabled to negotiate these costs? If so how does one negotiate when you have a heart attack and it's either have the surgery now or die?
6) Enact Medicare reform. "We need to face up to the actuarial fact that Medicare is heading towards bankruptcy and enact reforms that create greater patient empowerment, choice and responsibility." I've include everything John wrote here, because he has offered up no concrete proposal. I'm just don't see how what he suggests saves or funds Medicare more so than what is being suggested already.
7) Finally, revise tax forms to make it easier for individuals to make a voluntary, tax-deductible donation to help the millions of people who have no insurance and aren't covered by Medicare, Medicaid or the State Children's Health Insurance Program. Now this is where it all falls apart for me. This is trickle down at it's finest. Does John seriously think that by increasing charitable deductions it is going to improve healthcare for the uninsured. This is Freidman at his worst. Now that said as an individual John does practice what he preaches, but he assumes (and we know what that does) that others will act as charitably or responsibly. If he really believes this maybe he should start a non profit health insurance company that is funded by tax deductible donations as well as very low premiums and proof his theory.
That's it, have at it.
