An American Plan for Healthcare Reform

By Arthur "Art" Halvorson

The 21st Century is a time of explosive innovation serving a people empowered by unprecedented communications and networking. Decentralization is the hallmark of modern reform. Unlike the antiquated, centralized approach of Obamacare, we must take action to find solutions that fit our values, culture and times. It is long past time for American healthcare to catch up to the rest of the economy by giving the people tools and power to make their own decisions.

The replacement plan has to be simple, straightforward and guided by conservative principles. It must return power to individuals while addressing the rising cost of healthcare and the burden that puts on the nation. Americans are weary of being told what to do by the federal government, but they need a solution to rally around. To successfully repeal Obamacare, we need to explain how we will replace it.

It's time for conservative leaders to propose legislation based on the traditional values that have made this country great, including liberty, competition, fairness and compassion. It's time to end government meddling in the healthcare market, which always results in higher prices, fewer choices and worsened medical outcomes.

Liberty

People must be free to choose a healthcare solution that works for them. No one should be required to purchase health insurance, as required by Obamacare. Those who choose to purchase insurance should be free to select the level of coverage that meets their needs, not an arbitrary level of coverage mandated by Washington bureaucrats.

Instead, our plan must deregulate the industry and break down restrictions on purchasing options. We need solutions that give people more choices. We must take steps, through tax reforms, to put more purchasing decisions in the hands of individuals instead of employers. People must have confidence in owning their own coverage, so they can keep it when they switch jobs and upgrade it as their financial circumstances improve. This will encourage people to make wiser, more cost-effective decisions about prevention, care and wellness.

Competition

Competition in the marketplace not only lowers prices. It also produces transparency. As individuals take more responsibility for their healthcare choices, insurers and providers will be compelled to provide better information about the cost of care to consumers. This will create a virtuous cycle, in which better equipped healthcare shoppers will make smarter decisions and drive down costs.

Obamacare enhanced the worst aspects of the existing system - bloat, bureaucracy and complexity - while introducing a host of new mandates that strangle competition and deter innovation. As it stands, only the very largest insurers and providers can afford to comply with the tangle of regulations, price controls and coverage mandates, strengthening their market position and making it nearly impossible for new players to enter the market.

To reverse the damage, we must abolish Certificate of Need (CON) laws. We must allow people to buy insurance coverage across state lines. We must reform the Food and Drug Administration (FDA) to lower the costs of regulatory compliance. We must do everything we can to lower the barriers to market entry and deter the rise of monopolies.

Fairness

Today, employer-based coverage is free of any state or federal income or payroll taxes. But individuals who buy their own insurance must pay all those taxes. This isn't fair, and works against the creation of a competitive insurance market. Rather than work toward tax neutrality, Obamacare introduces even more inequalities. Some people get generous cost cuts, or even free coverage, but other people with the exact same income get no support at all. Federal tax policy should ensure equal treatment, whether it is employer-based coverage or an individual plan. If support is offered, it should be available to all. One solution is a refundable tax credit for those who purchase an individual or family health plan. This could be very generous, such as $2,500 for every adult and $1,500 for every child, and we would still spend far less as a nation than we do under Obamacare.

Compassion

Some people will always make unwise lifestyle choices, or become gravely ill through no fault of their own. Americans do not ignore such people. We care for them and help them get back on their feet. We need risk pools for those who don't buy coverage on their own. These pools can be funded with their unused tax credits.

We have a wealth of untapped resources in the form of retired physicians and nurses. Such caregivers would willingly contribute their talents to the care of the homeless and indigent, but the burden of malpractice insurance premiums prohibits it. Professionals who are willing to donate their time and talent should be protected from frivolous litigation. Tort reform must be addressed immediately at the state level to lower the overhead for practicing and retired physicians alike.

Conclusion

The 21st Century is a time of explosive innovation serving a people empowered by unprecedented communications and networking. Decentralization is the hallmark of modern reform. Unlike the antiquated, centralized approach of Obamacare, we must take action to find solutions that fit our values, culture and times. It is long past time for American healthcare to catch up to the rest of the economy by giving the people tools and power to make their own decisions.