The Health Challenge

Arnold Kling again pinpoints the real source of the health care crisis. His remedy, though, must be considered at fault; utilizing unfettered Markets will not settle anything when over half of the American population cannot pay free market Pricing for health care. Incomes of less than $60k per year simply cannot pay for full-care insurance now exceeding $6000 per year. Such Income levels cannot even repay Emergency Room charges once billed. There was real reason why foreign health care system do not rise above 8% of GDP; that reason being the great mass of Patients cannot afford any form of Payment for that health care. Conservatives who would champion a free market assessment of health care know they are insisting on cutting the majority of the Population off from adequate health care. It is also why the Conservatives will lose operational majorities at all levels of Government soon, if not the next Election.

The American People need a Single-Payer system, and One which is uniform throughout the Nation, and easy to understand. Allowing health care Providers to charge whatever they want, whenever they want, cannot finance universal health care, or even individual health care over the long-run. One method would be to pass a universal (Federal) law stating no medical service, medical equipment, or medical Drug can increase in Price higher than the lowest Inflation rate per Private Sector in the economy; simply put, the health care industry will come in last place every time in the Price wars. I would also be draconian, and insist that the Inflation adjustment start in the Period prior to the passage of Medicare. New medical procedures, equipment, and medical Drugs must be introduced in a Price no greater than its intended Replacement at time of introduction. The new Law would put a Cap on the health care industry.

My next proposed Act would declare that all Citizens are to be covered with an expanded Medicare, financed by a 4% increase in Social Security taxes–half paid by Employer, half paid by Employee. All Patients must pay $50 per Doctor’s visit, $75 per Clinic visit (which must include the Doctor’s fee of $50; actual Pay to Doctors will be negotiated between Doctor and Clinic), and $125 per Hospitalized Day. Medicaid will be directed to pay for all accepted Patients only the hospitalized Day Costs, and half of the Doctors’ fees and Clinic fees. Private Insurers will be restricted to paying the above fees, and further restricted in that premiums for such Insurance cannot exceed the Total Cost plus a 14% Profit on those Total Costs where administrative Costs allowed to be defrayed limited to $2 per forwarded bill. Medicare must insist on pre-approval before any medical procedure or medical equipment use exceeding $20k per Patient, and approve only those medical procedures and medical equipment which will provide sustained long-term Recovery of the Patient.

Further legal treatment must be introduced paying for Medical Student (and medical Technicians of lower caste) Loan Costs, upon successful navigation of an internship. Additional legislation must create a Research Fund which will loan Drug companies the funds for Research, where upon completion of Research, the Government will determine a dismissal level depending upon the success of the resultant Product–its intrinsic value. The major Challenge for both Conservative and Liberal in the health care system correction is to understand that the health care industry cannot develop haphazardly, with Research elements being funded on personal initiative and allowed to Charge whatever they would claim. lgl