The Objective Standard Blog

Friday, November 06, 2009

The Best Option For The Public

Posted by Paul Hsieh at 3:42 PM

In the November 4, 2009 Boston Globe, Jeff Jacoby outlines the best option for the public. (Hint -- it's not the "public option".)

From his article, "An option for public: less government, more choice":

A government-run health insurer would radically tilt the health-insurance playing field. It would amount to a new entitlement program, able to undercut the price of private insurance by squeezing hospitals and doctors, reimbursing them at below-market rates. "Just like Medicaid and Medicare," which also underpay medical providers, the public option would force hospitals and doctors to charge private insurers more. Insurers would be compelled to raise their premiums, eventually losing millions of customers to the government plan.

Obama insists that any public option would have to be self-supporting, properly balancing its premiums and risk and not expecting the government to cover its losses. Sound familiar? The same assurances were made about Fannie Mae and Freddie Mac.

Instead, he recommends the following free-market reforms:

* Tear down the barriers to buying insurance across state lines
* Repeal mandatory benefits that make health insurance needlessly expensive
* De-link health insurance from employment

(Read the full text of "An option for public: less government, more choice".)

These are all excellent ideas. Let's hope our politicians are listening!

Reposted from We Stand FIRM

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