Economics: Health Care Reform

I've always been told that you can't have it all.

In health care, there is a blend of access, cost and quality.

If you want full access for everyone and good quality, it will cost a fortune.

If you want affordable care then you have to give up some quality or access (denial of some services) or both.

Seems to me the main complaint about our current system here in the USA is that if you have pre-existing conditions, coverage is either denied or very expensive or if your company doesn't offer coverage, it is too expensive to buy on your own.

I suppose the government could change the regulations to prevent denial of coverage for pre-existing conditions. I'm sure the insurance companies would resist that but if they had no choice but to cover all applicants, they would jack up the premiums for everyone to help cover the cost of those new more "expensive" customers.

The so called "Obamacare" or "public option" would essentially do the same thing: raise taxes on everyone to help offer coverage through a government run insurance company to those who don't have it for various reasons.

But what about the un-insured who aren't in that category of pre-existing conditions?

People don't have health insurance for two other reasons: they are young and think they don't need it or they don't make enough money to buy it.

For those who don't have enough dollars, one could offer tax credits or vouchers to help them buy it or increase eligibility to Medicaid. Either way requires tax dollars!

But what about those who are young and think they are indestructible?

Unfortunately, there is not much one can do about them. They essentially have to be "scared" into buying insurance.

I suppose the HHS could do public service announcements explaining options for baseline coverage and then give the big stick: you will be fined if you don't have coverage (much like a driver caught without auto insurance is in trouble!) and you risk bankruptcy should you need expensive medical care!

In the end, I think the best option would be for health care insurance to mirror auto insurance: the consumer picks the level of coverage they want or can afford. There should be a legally mandated minimum coverage and then various levels of better coverage for those who want it and can afford it.

People might say, but that's not fair that the rich can get better coverage.

News flash: LIFE IS NOT FAIR!

What we want in our society is for everyone (which we don't have right now) to have some baseline coverage and retain the features (profit motive) that allow for innovation.