Common Sense and Perceived Loss of Health Care Freedoms

I think the plan is being slowed and may well be stopped not by ideology, or even by philosophy in a strict sense, but by simple American common sense. I suspect voters, the past few weeks, have been giving themselves an internal Q-and-A that goes something like this:

Will whatever health care bill is produced by Congress increase the deficit? “Of course.” Will it mean tax increases? “Of course.” Will it mean new fees or fines? “Probably.” Can I afford it right now? “No, I’m already getting clobbered.” Will it make the marketplace freer and better? “Probably not.” Is our health care system in crisis? “Yeah, it has been for years.” Is it the most pressing crisis right now? “No, the economy is.” Will a health-care bill improve the economy? “I doubt it.”

Peggy Noonan, “Common Sense May Sink Obamacare,” Wall Street Journal, July 24, 2009

Is American common sense sinking Obamacare? Maybe. My own sense is that health care has taken a back seat to the deficit, the economy, unemployment, and the sense that the stimulus has fallen flat. But , as details of Obamacare surface, and as people dive into the weeds of the proposals, people are getting the sense that Democratic proposals threaten health care freedoms.

According to Shawn Tully, editor at large for Fortune, who has read the 2000pages tortured legalese of HR3200 and the Senate proposal of Senator Kennedy’s Health Committee, these freedoms include,

1. Freedom to choose what’s in your plan.

The reason? The federal government will impose a minimum list of benefits that private plans will have to offer through “qualified plans” offered by health care “exchanges,” or some public option.

2. Freedom to be rewarded for healthy living, or to pay for your real costs.

Reasons? One, The proposals force all patients to pay the same rates, the so-called Community Rating, regardless of age or clinical condition,thereby gouging the young and healthy and making them pay the same as the old and sick. Two, the proposals force insurers to pay the same rates for all customers, regardless of risks and medical costs, thereby threatening their very existence as viable businesses.

3. Freedom to choose high deductible coverage.

This is a biggie. The bill would eliminate HSAs and high deductible plans, now owned by over 10 million Americans, and the fastest growing part of the private insurance market. This would deprive holders of these accounts and the freedom to spend their money, choose their own doctors, and set aside tax-free money.

4. Freedom to keep your existing plan.

Another biggie. Existing plans cover 253 million Americans, and more than 80% say they are pleased with their plans. To be sure, the proposals give ERISA employers that are self-funded, which include America’s large corporations, a five year grace period, after which employers would be compelled to offer “federally qualified" plans; ditto, for small businesses, which would be forced to offer “qualified plans,” Should existing plans change anything that might help them stay in business, small businesses would have to drop their existing plans and shop through the federal exchanges.

5. Freedom to choose your doctor.

Huge for those Americans who think they have enough good sense to pick their own docors. The Senate plan will require Americans to buy through exchanges and to get their care through “medical homes,” where you’re assigned a primary car ephysicians who will control your access to specialists and who will decide what services, liked MRIs or medical services, are most cost effective.

Conclusion

The Fortune editor concludes, “The best solution is to move towards a let-freedom ring regimen of high deductibles, no community rating, no standard benefits, and cross-country shopping.” This may not make sense to command and control central planners, but it seems to make common sense to most Americans who enjoy their current freedoms.