Recently, President Obama signed into law "Patient Protection and Affordable Care Act", also known as "Obamacare." While many Americans do not agree with it, President Obama suggested that it was a law that would grow on even Republicans, and one that the whole nation would eventually get behind. However, Republicans have yet to get behind it with almost all calling for its repeal. Other than the obvious un-Constitutionality of the mandate, many Americans also have come to realize that government involvement in medicine will be terrible. As I don't like to play the parties game, it's fair to point out that government has been involved in medicine since 1943, when it first allowed insurance provided by employers tax-free. This trend continued with programs such as medicare, medicaid, social security, and now Obamacare.
You just graduated from college and are an extremely well qualified employee, graduating at the top of your class with much internship experience. Shortly after applying for jobs you hear back from a few businesses that are interested in what you can bring to the table. After discussing your salary and benefits with two of your potential future employers, you discuss benefits with the third. Yearly paid vacation? Sounds good. But no insurance coverage?! Is this guy out of his damn mind? Instead he offers you a Health Savings Account (HSA). He says that every year he will donate $500 dollars to your account, with which you can do whatever you want. Don't need to spend the money the first year? Great, because it builds up, so now for year two, you have $1000 dollars in the account. No insurance, no hassle.
What does that have to do with free-market medicine?
1) Many doctors love the system just fine the way it was. A lot of people who make doctor's office visits have insurance, so the patients just hand the receptionist their insurance cards and carry on. This allows the doctors to charge whatever they want, and then pass the cost on to the insurance companies. However, insurance companies are also in it for a profit, so they will then pass the cost on to the customers. This results in rising premiums and is part of the reason health care is so expensive. Now, with the mandate, since everyone is required by law to have health insurance, this problem is only going to get worse. HSAs would force doctors to compete, lowering prices, while increasing the quality of care. When was the last time you went to your doctor's office and asked: How much for a physical? If more patients did this and shopped around for the best combination of cheap/quality doctor, this would force doctors to expand care, give patients more bang for their buck and lower their overall prices. Prices adjusted for inflation have fallen in several markets while improving the quality of goods, with the exception of the car, where the price adjusted for inflation remains the same or slightly higher, however one must take into account that the cars nowadays do a lot more than the Model-T (GPS, OnStar, air-conditioning, anti-lock brakes, etc.), I digress.
2) HSAs would also encourage people to live a healthier life style. If I am given $500 dollars in my account yearly, maybe I won't go for medical care every time I get a bump on my arm. This is my own money that I'm dealing with here, maybe I should start eating healthier, exercising and getting more sleep. After all, I don't want to exhaust the money in my HSA. Now, I can foresee the argument, "What if someone is diagnosed with cancer and has tens of thousands of dollars in costs for treatment, and they don't have enough money in their HSA?" Well, a valuable employee is worth more to a company than the cost of the loss of a valuable employee, so in cases such as these, the employee/employer can work something out. Too many people think of a free-market as static, where if you don't have enough money to afford health care, you simply rot in the street. The employer can easily work something out with the employee, as can the hospital, and donations from friendly neighbors are always an option. Doctors have taken a hippocratic oath to help the sick, and by all means, most good doctors will. Why? Because if they don't the news can spread like wild fire, and there you see another benefit of the free-market: consumer choice.
HSAs are the most viable free-market option to health care and give the best results while lowering prices. They keep doctors honest, and can help to make for a healthier nation. Government involvement makes costs sky-rocket, and while supporters of Obamacare think it is the right thing to do, to provide insurance for everyone, it is the wrong approach. Health care's main flaw is it's cost. If the cost of health care dropped, more people could afford it, with or without insurance.
Sources/Inspiration:
http://mises.org/daily/4434
http://www.tomwoods.com/blog/find-it-hard-to-defend-free-market-medicine/
http://www.youtube.com/watch?v=dzm5jhguYJ0
Got questions, comments, or concerns? Feel free to contact me at ryanokonski@gmail.com
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