The Anti-ObamaCare Recovery Plan

tgrass

The Anti-ObamaCare Recovery Plan

To get to a health care system that creates the right kinds of incentives, we need toharness the power of the market by putting patients at the center, rather than Governmentand insurance company bureaucrats. We need fair competition, which has worked in somany other complex industries, like stock brokerage or online shopping. We cannotafford to neglect the market mechanisms that spawn this kind of innovation.In such a system, patients become wise consumers, and providers become entrepreneurs.The new incentives are for doctors to innovate to cure patients as quickly as they can andfor patients to support the best doctors with their business. In this world, insurancecompanies do not need to be a combination escrow account for pre-paid medicalexpenses and insurance for unanticipated major medical expenses. Insurance can becomea series of products that financially protect Americans from catastrophic health events,and routine health spending can happen through tax-advantaged savings accounts(HSAs).When we create a world where providers compete for consumer business, we unleash theentrepreneur within our providers. They now have license to find better ways to do thingsbecause the market will reward them for doing it. They will want to make their inventionsand outcomes known to potential patients because it will attract business fromconsumers. In that world, consumers will seek out these effective doctors because peoplecan get the answers to the question: “where should I go to have the best outcome, at aprice I can afford?”The same is true for insurance. If we treated car insurance like we treat health insurancetoday, we would be submitting bills to GEICO when we get an oil change. This wouldadd tremendous premium and administrative costs to the system without advancing anyconsumer goal. Certainly health insurance is more complicated, but separating types ofpayment needs will bring real savings to consumers. When insurance is no longer theonly way to pay for all health care services regardless of type, plans will innovate toremain relevant to consumers, which will mean offering more attractive products withcompetitive pricing.Third, enable new ways to deliver higher quality, lower cost care designed by physiciansand nurses.Not only has the status quo compromised quality for patients, it means the health caresystem has missed out on thousands of job creators who could add value to the systemAmerican healthcare system. With insurers playing a more limited role in the system,providers and entrepreneurs will be free to design better ways to deliver sections of thehealth care value chain. Too often, doctors and nurses find themselves pushing paperinstead of practicing medicine.Rather than success based on who has the biggest team of lobbyists to navigate the mazeof Government rules and mandates, providers should be free to compete on costs, quality,and outcomes.Version 2.5, Posted March 30, 2014 14

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