Paying for Health Care

John Cochrane correctly decried the costs of health care in today’s economy, but he has the wrong solution.

Why is paying for health care such a mess in America? Why is it so hard to fix? Cross-subsidies are the original sin.

No, cross-subsidies, “sinful” as they are, are not the original sin.  The original sin is government involvement at all in the form of any sort of subsidy.  Far from the subheadline’s claim that “honest subsidies” (eliding the oxymoronic nature of that label) would encourage competition and innovation, they’d do the opposite, as all subsidies do: they’d suppress competition and innovation by giving the government-favored recipients a government-mandated advantage over their government disfavored competitors, freeing the one from competition’s pressures to innovate and reducing the other’s access to resources needed to innovate—and stifling competition’s engine, the need to innovate to stay ahead of rivals.

AHPs

Association Health Plans are new plans that, by regulation, allow small businesses to band together across industries and state boundaries to form health insurance buying consortiums.  Using this larger size-generated buying power, they should be able to acquire cheaper, better tailored, more flexible plans for their employees, plans that those employees actually will want.

However.

The left says association plans are junk insurance that will blow up ObamaCare.

Some AHPs likely will be; that’s a fact of life in any market, free or centrally planned. However, a free market is self-regulating and quickly so; junk plans will be few and far between.  Blow up Obamacare?  That’s win-win.

Why Should There Be a Cap?

Scott Atlas wrote in a recent Wall Street Journal that all of us should have access to health savings accounts, instead of just the few well-off among us who can afford the high deductible health coverage plan that’s currently a prerequisite for having an HSA.  He also wants to raise the cap for contributing to one to $7,350 per year.

He’s on the right track, but he stopped short.  Why should there be a cap on HSA contributions?  Why can’t we contribute as much or as little as we want instead of what Government will permit?

Of course, with a properly low, flat income tax rate, tax reduction/avoidance/savings facilities like HCAs, IRAs, 401(k)s, etc, would have less value because there’d be less taxes to be avoided.  We’d have more of our money in our hands to spend as we see fit and to save for the purposes that suit us rather than suit the men of Government.

Another Obamacare Episode

The Justice Department has declined to defend Obamacare in the suit against it brought by a large number of States in the aftermath of Congress’ repeal of the Individual Mandate penalty tax.  Recall that Chief Justice John Roberts rewrote the law in 2012 to recreate the penalty as a tax in order to preserve the IM as constitutional, and thereby to preserve all of Obamacare as constitutional because of the inseverability of all parts of the law.

With the repeal of the IM’s…tax…that inseverability should doom the rest of Obamacare.

As a result of Attorney General Jeff Sessions’ decision not to defend the law,

University of Michigan law professor Nicholas Bagley said three Justice Department attorneys withdrew their names from the brief [wherein DoJ advised the court of its position].

Three Justice Department attorneys also should withdraw their names from the Federal payroll.

The Veterans Administration

…won’t clean up after itself.  In this instance, literally.  This is the VA “hospital” room a veteran was placed in when he went to that…facility…for treatment that involved 18 injections.  Injections to be done in a room as filthy as this.

Dr Karen Gribbin, the chief of staff at the George E Wahlen Department of Veteran Affairs Medical Center, on Saturday reportedly said that Wilson should not have been in the room. She said the rooms should be cleaned prior to each patient and called on an investigation.

Wahlen is the imitation hospital at which this failure occurred.  The vetaran’s father, who posted the tweet, also tweeted

The condition of the room was the way it was when he went in, no other room was offered and no attempt to clean it up was made for the duration of his appointment[.]

Gibben also admitted that the veteran got his injections in that dirty room, but she claimed that the injection equipment—the needles, for instance—

would have been used just on him.

While that is, in fact, highly likely, how can we be sure, given the condition of the room and the level of professionalism and of integrity demonstrated by going ahead with the patient’s treatment there?

And this:

Gribbin was asked what the typical procedure was for when to clean patient rooms in order to ensure they are clean for each visit.

“We are investigating that. To be quite honest I do not work in that clinic area and I am not sure…exactly what that process is. We will be absolutely clarifying that, making sure our policies and procedures are well thought out and well communicated to staff[.]

She’s the Chief of Staff.  How is it possible that she does not know her own procedures or protocols?

Again, I say: disband the VA altogether and use its budget and nominal future budgets for vouchers for our veterans to see the doctors, clinics, and hospitals they choose, when they choose, and for the care they choose.  Enough of the VA’s trash.  Literally.

The original tweet, posted by the veteran’s father, can be seen here.  Poke through the reply thread, too.

 

Veteranos Administratio delende est.