31 August 2009
Mouth
Storage cubes
Extra
30 August 2009
Got Milk?
29 August 2009
Tillicum Village & Seattle
Our mini-getaway (day 2)
27 August 2009
Our mini-getaway (day 1)
26 August 2009
Birthday bash (part II)
Birthday bash (part I)
We're back!
17 August 2009
Crawl spaces are not fit for animals
15 August 2009
14 August 2009
Marissa Noe Photography
13 August 2009
11 August 2009
10 August 2009
Cemetery
Pre-birthday
An Alternate Plan that Every One in Congress COULD READ
WASHINGTON -- In 1986, Ronald Reagan and Bill Bradley created a legislative miracle. They fashioned a tax reform that stripped loopholes, political favors, payoffs, patronage and other corruptions out of the tax system. With the resulting savings, they lowered tax rates across the board. Those reductions, combined with the elimination of the enormous inefficiencies and perverse incentives that go into tax sheltering, helped propel a 20-year economic boom.
In overhauling any segment of our economy, the 1986 tax reform should be the model. Yet today's ruling Democrats propose to fix our extremely high quality (but inefficient and therefore expensive) health care system with 1,000 pages of additional curlicued complexity -- employer mandates, individual mandates, insurance company mandates, allocation formulas, political payoffs and myriad other conjured regulations and interventions -- with the promise that this massive concoction will lower costs.
This is all quite mad. It creates a Rube Goldberg system that simply multiplies the current inefficiencies and arbitrariness, thus producing staggering deficits with less choice and lower-quality care. That's why the administration can't sell Obamacare.
The administration's defense is to accuse critics of being for the status quo. Nonsense. Candidate John McCain and a host of other Republicans since have offered alternatives. Let me offer mine: Strip away current inefficiencies before remaking one-sixth of the U.S. economy. The plan is so simple it doesn't even have the requisite three parts. Just two: radical tort reform and radically severing the link between health insurance and employment.
(1) Tort reform: As I wrote recently, our crazy system of casino malpractice suits results in massive and random settlements that raise everyone's insurance premiums and creates an epidemic of defensive medicine that does no medical good, yet costs a fortune.
An authoritative Massachusetts Medical Society study found that five out of six doctors admitted they order tests, procedures and referrals -- amounting to about 25 percent of the total -- solely as protection from lawsuits. Defensive medicine, estimates the libertarian/conservative Pacific Research Institute, wastes more than $200 billion a year. Just half that sum could provide a $5,000 health insurance grant -- $20,000 for a family of four -- to the uninsured poor (U.S. citizens ineligible for other government health assistance).
What to do? Abolish the entire medical-malpractice system. Create a new social pool from which people injured in medical errors or accidents can draw. The adjudication would be done by medical experts, not lay juries giving away lottery prizes at the behest of the liquid-tongued John Edwardses who pocket a third of the proceeds.
The pool would be funded by a relatively small tax on all health-insurance premiums. Socialize the risk; cut out the trial lawyers. Would that immunize doctors from carelessness or negligence? No. The penalty would be losing your medical license. There is no more serious deterrent than forfeiting a decade of intensive medical training and the livelihood that comes with it.
(2) Real health-insurance reform: Tax employer-provided health care benefits and return the money to the employee with a government check to buy his own medical insurance, just as he buys his own car or home insurance.
There is no logical reason to get health insurance through your employer. This entire system is an accident of World War II wage and price controls. It's economically senseless. It makes people stay in jobs they hate, decreasing labor mobility and therefore overall productivity. And it needlessly increases the anxiety of losing your job by raising the additional specter of going bankrupt through illness.
The health care benefit exemption is the largest tax break in the entire U.S. budget, costing the government a quarter-trillion dollars annually. It hinders health-insurance security and portability as well as personal independence. If we additionally eliminated the prohibition on buying personal health insurance across state lines, that would inject new and powerful competition that would lower costs for everyone.
Repealing the exemption has one fatal flaw, however. It was advocated by candidate John McCain. Obama so demagogued it last year that he cannot bring it up now without being accused of the most extreme hypocrisy and without being mercilessly attacked with his own 2008 ads.
But that's a political problem of Obama's own making. As is the Democratic Party's indebtedness to the trial lawyers, which has taken malpractice reform totally off the table. But that doesn't change the logic of my proposal. Go the Reagan-Bradley route. Offer sensible, simple, yet radical reform that strips away inefficiencies from the existing system before adding Obamacare's new ones -- arbitrary, politically driven, structural inventions whose consequence is certain financial ruin.
05 August 2009
This week...
04 August 2009
Insurance too expesive? Really?
We just bought Amanda health insurance the other day: it cost about $50 a month. It's one of those "high deductible" insurance packages that Congress wants to make illegal. People don't seem to understand the purpose of insurance, and its noble ideal. Through insurance, we are able to share risk, and when someone is unlucky enough to protract an illness that they are not able to pay for (e.g., cancer), then insurance (paid for by others who did not get serious illnesses) covers the sickness. It is ridiculous to demand that insurance covers things like check-ups because they have nothing to do with risk. Thomas Sowell, one of my favorite economists and authors, explains this distortion and how it has artificially increased insurance premiums:
This is why, I'm not a member of the APA and never will be: Because, I do not believe that we should force others to pay us (mental health professionals). If our services are such that force is necessary for us to get gainful employment, then something is seriously wrong.Politicians are already one of the main reasons why medical insurance is so expensive. Insurance is designed to cover risks but politicians are in the business of distributing largesse. Nothing is easier for politicians than to mandate things that insurance companies must cover, without the slightest regard for how such additional coverage will raise the cost of insurance.
If insurance covered only those things that most people are most concerned about-- the high cost of a major medical expense-- the price would be much lower than it is today, with politicians piling on mandate after mandate.
Since insurance covers risks, there is no reason for it to cover annual checkups, because it is known in advance that annual checkups occur once a year. Automobile insurance does not cover oil changes, much less the purchase of gasoline, since these are regular recurrences, not risks.
But politicians in the business of distributing largesse-- especially with somebody else's money-- cannot resist the temptation to pass laws adding things to insurance coverage. Many of those who are pushing for more government involvement in medical care are already talking about extending insurance coverage to "mental health"-- which is to say, giving shrinks and hypochondriacs a blank check drawn on the federal treasury.