How to get efficient health care

Via Will Wilkinson

Prices, prices, prices, prices.

What Hayek had in mind was a competitive market in risk-rated insurance and a competitive market in medical services. No price controlsLet the markets rip. Mandate a certain minimum level of insurance coverage. If you’re uninsurable or can’t afford a policy, then the state pitches in. I’m fairly certain that his idea was nowhere in the neighborhood of making Aetna a quasi-governmental mechanism for redistribution.

Singapore, I think, has the closest thing to the sort of system Hayek had in mind. Among wealthy countries, it spends the smallest percentage of GDP on health care, and it gets about the best results. You know what that’s called? Efficiency. How do you get it? Competitive markets with freely moving prices under the rule of law! It’s the sort of thing you’re in favor of if you want everybody to have access to really good health care and money to spend on things other than health care.

My thoughts on health care/insurance have always been; no one should be without health insurance; no one should be denied health insurance because of a pre-existing condition;if someone has being paying a premium insurance companies cannot deny them when that consumer needs it the most;if some can’t afford insurance they should be given a tax subsidy;increase competition by removing the anti-trust law to break up the monopolies and implement a public-insurance plane;move away from employer mandated insurance so individuals can have a hands on approach;bring everyone into the risk-pool with an individual mandate;pay doctors for quality of care not quantity;create incentives for those insured to stay healthy;preventive care;create health insurance exchanges for consumers of insurance to shop around for what is best for them.

I could continue but I think you get the point. To read about health care, and the recent health care reform bill read Ezra Klein of the Washington Post.

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Published in: on August 8, 2010 at 10:54 pm  Leave a Comment  
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