Diane Young – 9/10/09

This page was last updated on September 10, 2009.

Congress should listen to us; Diane Young; Beaver County Times; September 10, 2009.

Below is a detailed critique of the letter.

“Here are some of my ideas on reforming health care:

[RWC] Please read my paper entitled “Healthcare.” Most of my comments below are covered in more detail in that paper.

“-- Tort reform. We really need this one. It would benefit all of us when it comes to cost.”

[RWC] Ms. Young didn’t say what she means by tort reform. If Ms. Young means “loser pays,” that would be good. If Ms. Young means award caps, I would disagree.

“-- More private enterprise competition from insurance companies. I may be uninformed on this issue, but I’m not aware of any other private company in the United States that cannot compete across state lines.”

[RWC] This paragraph was poorly written. I believe Ms. Young is drawing attention to the fact that most states prohibit its citizens from purchasing healthcare insurance from companies in other states. As I understand it, this behavior violates federal law for most industries, but there’s a federal law granting an exception for healthcare insurance. In other words, federal law limits healthcare insurance competition.

“-- Allow us the same coverage as Congress.”

[RWC] There’s no reason a person can’t buy insurance like Congress’ today. Private healthcare insurance companies provide Congress’ insurance.

“-- Give tax credits to the citizens who buy their own private health insurance.”

[RWC] Everyone should buy their own healthcare and/or healthcare insurance. It’s necessary for a free market to work correctly.

“-- Reform the fraud that takes place in the current Medicare system.

“-- Allow the same tax credits for small businesses that the large corporations enjoy.”

[RWC] I disagree on two points. First, I’m no tax expert, but employer-based healthcare insurance is a part of employee compensation and counts as a business expense regardless of a business’ size. Thus Ms. Young incorrectly believes big businesses are getting a break in this area small businesses do not get.

Second, one of the things we need to do to move to a free market is to get employers out of the healthcare insurance loop. That would be accomplished by eliminating the special tax treatment of employer-based healthcare insurance, not expanding it.

“-- Cover pre-existing conditions.”

[RWC] This is like asking an insurance company to sell you homeowner insurance while your house is on fire. I agree this can be an issue for some people and could be dealt with as an exception in certain cases, most likely via charities. A blanket requirement that insurers cover pre-existing conditions, however, would simply drive up premiums for everyone.

“-- There has to be a way to pay for an additional 5 percent of our citizens who need coverage. Some brilliant entrepreneurs can come up with a plan.”

[RWC] It’s called charity.

“I’m positive that there are many more ideas out there regarding reformation of our current system.

“Why doesn’t Congress just listen to its employers for ideas?”