Is "Cash for Clunkers" a good model for "Heathcare Reform"?
Strangely enough.... as poorly thought out and implemented as this program is it actually is a very good concept for healthcare "reform". ...
Strangely enough…. as poorly thought out and implemented as this program is it actually is a very good concept for healthcare "reform".
This program sets aside a pool of money. American citizens can choose to use this money or not. They can use this money to buy a car of their choice, as long as it meets certain standards.
There is very little government interference in the choice of the consumer or the choice of the automobile dealer. The Consumer can buy the car they want…the dealer is free to advertise it’s merchandise and to offer additional incentives.
Apply this concept to healthcare. The government can offer tax credits to people to pay for insurance. You can get the insurance that you want from the provider you want. The government will then offer up to "X" amount annually in tax credits to pay for it. This will modify your deductions on your W4 so you keep the money in each paycheck. It never goes to the government and forces you to apply for a refund.
To be eligible you need to be enrolled all year…any partial year enrollments are credited on a pro rated basis.
American citizens can choose their providers….companies are free to compete for new business and will likely see a rise in enrollments (driving down prices) as a result.
Of course we will still need to take additional steps to reduce the actual COST of healthcare (tort reform, reduced regulatory costs) but isn’t this is a great start?
Regrugg -
Agreed.
I was using the model as an example. In the healthcare implementation people would keep their OWN money to pay for their insurance.
The principle is that the government allocate the money to be spent in the free market (as ironic as it is to allocate a person their own money)
ej -
It really didn’t fail. It was just overwhelmed and may run out of money. This was a failure of planning and implementation (an Obama Administration trademark)
The healthacre wouldn’t run out of money because it just allows people to keep their own money to be spent on their own needs.
It’s simple in concept