PERSPECTIVE FROM THE 19TH HOLE: This is the title I chose for my personal blog, which is meant to give me an outlet for one of my favorite crafts – writing – plus use an image from my favorite sport, golf. Out of college, my first job was as a reporter for the Daily Astorian in Astoria, Oregon, and I went on from there to practice writing in all of my professional positions, including as a Congressional press secretary in Washington, D.C., an Oregon state government manager in Salem and Portland, press secretary for Oregon’s last Republican governor (Vic Atiyeh), and a private sector lobbyist. This blog also allows me to link another favorite pastime – politics and the art of developing public policy – to what I write.
Even as members of the House and Senate, not to mention the incoming Trump Administration, debate health care reform, it strikes me as a logical time to suggest my own framework for reform.
I do so, not because I will have any role in the effort, but because I want to have a response when those who support ObamaCare suggest that ObamaCare opponents have nothing to say about replacing that government-dominated system.
I also believe that a country such as ours, with all of its various political viewpoints, should be able to solve a challenge such as health care. A solution can emerge if, in contrast to the Obama Administration, the goal is to produce a program somewhere in the middle, not one adopted by only one side or the other.
As columnist Kimberley Strassel wrote in the Wall Street Journal last week, “Republicans already agree on the general contours of a free-market proposal—one based on tax credits, entitlement reform, freer insurance markets, portable policies and fewer mandates. The internal debates are over scope and details, not approach.”
What might undo Republicans isn’t policy so much as politics. This is where they’d do well to reflect on all that President Obama did wrong. Long before ObamaCare cratered on the merits, it had failed in the court of public opinion—because of both the manner and the means by which it became law. The first test for Republican lawmakers and the Trump administration is whether they prove foolish enough to repeat those obvious mistakes.
Senior Democrats crafted ObamaCare in backrooms, foregoing hearings, markups, even input from their own colleagues—much less Republicans. It was an exercise in secrecy and control.
It’s time for something different, a middle-of-the-road plan that takes into account perspectives from reasonable folks on both sides of the aisle in Congress.
So, borrowing, in part, ideas from the American Enterprise Institute, not just my own notions, here are what could be called “four legs of the health care stool.”
- It won’t be popular in some quarters, especially with some Republicans, but, first, a critical component of reform is to require all citizens to have health insurance, either by buying it if they can afford it, or by having it provided by government if they cannot.
Without everyone in the to-be-insured pool, any system will collapse, much as occurred with ObamaCare. The very rationale for insurance is that the largest pool possible should be covered in order to spread the risk.
Think of this way. All of us who drive cars are required to have automobile insurance. If we don’t, we pay a price. The same policy should exist for health insurance.
- Second, a catastrophic health insurance plan should be provided so that those who cannot afford regular insurance have an option for a lower-cost plan.
As the American Enterprise Institute has written: “Health insurance is also important for financial security. The ObamaCare replacement should make it possible for all people to get health insurance that provides coverage for basic prevention, like vaccines, and expensive medical care that exceeds, perhaps, $5,000 for individuals.
“Those Americans who don’t get health insurance through employers, or Medicare and Medicaid, should be eligible for a refundable tax credit that can be used to enroll in a health-insurance plan. The credit would be set at a level comparable to the tax benefits available to individuals with employer-sponsored insurance plans. The subsidy would be enough to make a basic level of catastrophic coverage easily affordable for all Americans.”
- Third, any new middle-of-the-road health coverage approach should accommodate people with pre-existing health conditions.
I have mixed emotions about this because, inevitably, the price of insurance will go up with the added risk of covering pre-existing conditions. Yet, there is a reasonable social consensus that people should not be penalized financially for health problems largely outside of their control.
- Fourth, any new plan should allow broad access to health-savings accounts (HSA). ObamaCare pushed millions of Americans into high-deductible insurance without giving them the opportunity to save and pay for care before insurance kicks in. There should be a one-time federal tax credit to encourage all Americans to open an HSA and begin using it to pay for routine medical bills. And HSAs, combined with high-deductible insurance, could be incorporated directly into the Medicare and Medicaid programs.
As millions of consumers begin using HSAs, the medical-care market will begin to transform and deliver services that are convenient and affordable for patients.
While I am not advocating this specifically as part of my proposal, I believe consideration also should be given to deregulating the market for medical services.
As I wrote above, HSAs will empower the demand side of the market, but suppliers need freedom from overly-aggressive regulation to provide packages of services better tailored to individual needs.
Hospitals and physicians should also be allowed to sell access to their networks of clinics, oncology services, and inpatient facilities as an option to be used in the event a patient is diagnosed with an expensive illness.
American health care is teetering because it relies too much on governmental mandates and funding. A functioning marketplace can deliver high-quality care at lower cost.
As Congress and the Trump Administration move to do something different than a government, top-down ObamaCare approach, now is the time to develop a system that empowers consumers to take more responsibility for their own health care and that of their families. A political approach from the middle is the only way to achieve acceptable reform.