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Posts Tagged ‘Baucus’

Peter Suderman does an excellent job of clarifying Ezra Klein’s misconceptions about health care.

This is the house they’ve built: an insurance market where plans are written for the healthy and all legal efforts are made to exclude the sick. That’s meant premiums are somewhat lower than they’d otherwise be, but only because the people who most need health-care insurance aren’t able to afford it, or in some cases, aren’t able to convince anyone to sell it to them. Now that arrangement is ending and they’re scared that they can’t provide an affordable product to the people who need it. They may be right, but it’s evidence of how deeply perverse their business has become, not of what’s wrong with health-care reform.

That’s one way to look at it. But Klein’s conclusion rests on the assumption that the insurance industry exists to provide inexpensive protection and support to those deemed “in need” rather than a service business built to help provide a safety net against genuine catastrophe—you know, insurance—to those who want to pay for it. Essentially, this view entails seeing insurance as a social good rather than as a business, which explains why many reform advocates see a single payer system as their ultimate goal.

Now, that’s par for the course for folks with a preexisting liberal worldview. And none of this is particularly surprising given that a) Americans tend to understand insurance as medical prepayment rather than actual insurance and b) the country has built its medical system around third-party payment.

I’ve never understood the concept of health care as a public good.  It’s not a resource, there’s no fount of endless good-health that we can dip into.  Health care and insurance are services, and in a service economy it’s clear that multiple providers and competitive pricing are the best discovered mechanisms for lowering costs and increasing access.

Consider cell phone service.  When the first bulky cell phones came out they cost an arm and a leg, had terrible reception, were ostentatious and you could only use them if you stood under a tower.

But competition and creative destruction have (and continue) to work their invisible hands in the cell phone industry, and now you can have a slim blackberry set to vibrate, and reasonably expect 3G coverage in the middle of Montana.  Google “cell phone providers” and see how many options you find.  True, most people you meet will have either At&t or Verizon, but that’s because by most standards they’re the best.  But the variety of carriers, and more importantly, the potential for increased variety, is intrinsic to the market.

When it comes to something as important as health care, we should be trying to actively promote that kind of diversity, expansion, and cost-cutting.  Baucus-care and its single-payer ilk won’t do any of these things, but Ezra Klein doesn’t care nearly as much for actually helping people as he does about bashing insurance companies for not operating as he’d like.

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David Harsanyi hammers on CBO ‘estimate’ of the newest version of the Baucus health-care bill.

The CBO’s new estimate, which magically meets every one of President Barack Obama’s preconditions, is based on “conceptual” language provided by Baucus rather than on any of those maddeningly specific Arabic numerals.

That’s because the estimate isn’t rooted in an actual bill per se, nor does it incorporate hundreds of amendments that will be part of any final product—well, not exactly … What we do have is a CBO that has been browbeaten long enough by the White House to finally summon the conviction to get a figure that so many wanted to hear. (more…)

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