Phillies on Medical Care Costs: There are no Magic Cures

Worcester, Mass. March 21 — Libertarian Presidential candidate George Phillies today urged simple steps to reduce the cost of medical insurance. «There are no magic cures,» Phillies said. «I am proposing Libertarian improvements in our medical care system. These are changes Americans will actually accept and implement now. Once Americans see these changes work, they will be more ready to trust more radical Libertarian proposals.

«First, transfer costs should be eliminated. Right now, anyone who comes to a hospital emergency room gets free care even if they don’t have health insurance. That care is emergency room care, some of the most expensive medical care there is. Who pays for it? It’s a transfer cost, an ‘administrative cost’ charged to your health insurance, which in turn raises your rates. Transfer costs exist because Congress passed an unfunded mandate requiring hospitals to give free care.

«Unfunded mandates should be repealed. If Congress insists on giving away free medical care — not my recommendation — they should pay the costs. Replacing an unfunded mandate and a hidden cost transfer with a funded mandate eliminates a tax–the hidden tax on your health insurance. It makes that cost visible and makes Congress answerable for it. That’s the first step in the right direction.

«Second, drug costs come partly from redundant safety approvals. Medical drugs approved for use in Europe should be accepted for use here without having to go through another approval process. 100,000 American lives could have been saved by bringing beta blockers to the American market as soon as they were approved in Europe.

«Third, tax treatment for medical care costs should be the same for everyone. No matter whether your employer buys your insurance, you buy your insurance, or you pay out of pocket, your spending should have the same tax treatment.

«Fourth, we should allow interstate competition in medical insurance because competition is good. Now in 2008, your insurance costs can change several-fold simply by your moving residence across state lines. Interstate commerce will eliminate inequalities in the market.

«I’m not going to make miraculous promises about preventive medicine. Americans can do some things for themselves to help live a healthier life. See a physician regularly and follow your physician’s advice. Advice like: Avoid tobacco smoke. Achieve and maintain a healthy weight. Exercise vigorously and regularly. Maintain your adult vaccinations. Wear your seat belt. Have the routine screening exams that work. The old adage that an ounce of prevention beats a pound of cure is true, especially if that ‘cure’ involves high emergency room costs.

«I’m not going to tell you fairy tales about tort reform greatly reducing costs. We have lawsuits because medical people sometimes make gross blunders. People injured by incompetence or negligence deserve compensation. I encourage individual states to experiment with radically different tort and insurance rules. That helped with no-fault auto insurance.»

«I’m not proposing pie-in-the-sky philosophical purist changes,» Phillies said. «I’m not proposing miracles. I’m proposing changes that Americans will understand and find attractive. I’m proposing solutions that move us in the Libertarian direction and that can be implemented today.»

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George Phillies for President 2008

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