How create competition in health care? free enterprise not government run health care

Paul Krugman in Baucus and the threshold (Santa Cruz Sentinel 9-20-09) writes that the Baucus plan doesn’t create “real competition in the insurance market. The right way to create competition is to offer a public option, a government run insurance plan individuals can buy into as an alternative to private insurance…”

That boggles the mind. Paul, we already have a public option — it is called Medicare. Everyone age 65 is forced to use the public option plan. Whether they like it or not. Medicare is a single payer, government run plan. And it runs hugely in the red. Reform Medicare instead of creating another government run bureaucracy.

How reform health care? Here’s how:

One, let the over 65 population opt out of Medicare in favor of privately run insurance plans of their choice. Create an Exchange that allows private insurance plans to compete with Medicare Over 65 people who are healthy and only want catastrophic care can get what they want. People over 65 may not want to and should not have to to pay for cosmetic surgery, abortions or AIDS care. Let the over 65 choose the level and kind of care they want. This is a way to create real competition with the existing single payer system – Medicare.What was that cry in the wilderness — Let my people go! Today let the people go out of Medicare if they choose.

Two, get serious about tort reform. Cap the amount of money people can get for non-economic losses at $400,000. Get rid of joint and several liability. That is serious tort reform. One state has already made these reforms. Make tort reform applicable in all states.

Use the carrot instead of a stick. Give incentives for people to either buy health care or set aside money in an account to pay for their cost. Don’t use penalties for not buying insurance

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