(0 comments)A poignant way to look at health care reform from Yglesias:
JacobLyles asks: “What do you think of McArdle’s idea of universal catastrophic coverage? Relatively affordable and universal.”
Short answer: I think that’d be great.
Long answer: I’m not a believer in the “here’s this other idea of mine that’s good & since it’s good that’s a good reason to oppose Obama’s health care plan” theory of evaluating legislation. A bill that would have Medicare provide catastrophic coverage to all Americans would be a good bill. The House health care bill is also a good bill. The Senate health care bill is another good bill. And the administration outline is is yet another good bill.
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Fast Food
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Syndication



The problem here is one of narrow focus: Anything looks good if you only consider the short-term positive aspects (such as more health benefits for people) and ignore the larger, more long-term drawbacks (like economic inefficiency)…
<img src="http://1.bp.blogspot.com/_otfwl2zc6Qc/S4bWR2V1EGI/AAAAAAAAM3I/cRV1N5wSp3w/s640/medcosts.jpg" target="_blank">
Any change that further separates these lines will be economically inefficient and lead to worse outcomes over the long term. The relevant question is whether you put less weight on this than immediate benefits of subsidizing more coverage.
It's very much like our public school system in this respect: adding more money to the system may do some short-term good, but soon leads to more waste and reduced value for the money.
To create value, you need competition and choice. For this to happen you need to transition away from the absurd employer-based system (which only arose due to government price controls during WW2) and strengthen the connection between payment and purchase.
If patients aren't obligated to pay in direct proportion to the services they consume, the market can't function.
Wow, Paul Ryan has a trenchant critique of the Senate bill: <a href="http://www.youtube.com/watch?v=zPxMZ1WdINs.” target=”_blank”>http://www.youtube.com/watch?v=zPxMZ1WdINs. (anti-government boilerplate starts at 5 minutes in, but everything before that is good)
I've never been more convinced that passing this is a bad idea on the merits.
(though certainly a political necessity for Democrats, they've put way too many eggs into this basket to give it up)
I'm now looking to find clips of Democrats or blog posts by supporters of this bill that engage Ryan's points.
(to rail against hypocrisy is not to engage the substance of this critique. I'm not interested in which side is more hypocritical, I'm interested in whether the bill makes things worse on net.)
(embed was acting goofy up there)
[youtube zPxMZ1WdINs http://www.youtube.com/watch?v=zPxMZ1WdINs youtube]