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Obamacare Fails to Connect Consumers with Cost
June 07, 2010
Peter Hansen writing for The Weekly Standard has written an article analyzing Obamacare’s inability to contain health care costs without the use of rationing.
In his article, “Put the Patient in Charge,” Hansen focuses on the disconnect most patients have from the actual cost of their care. Without understanding these expenses, Americans will continue to over-use the system, which – under the newly enacted Obamacare – will inevitably lead to restricted access.
“The only way in which Obamacare…will be able to control costs is through some kind of rationing. Nobody likes rationing, but one cannot avoid it if one believes that ultimately people should not have to pay for their health care. For those who think people can and should take care of their own necessities, however, there is a better way of getting control of costs. Instead of establishing a bureaucracy above consumers and/or producers to dictate what they may consume and/or produce, we should strengthen the link between consumers and the cost of what they consume.”
He theorizes that the problem is rooted in the employer-provided insurance model which encourages Americans to overspend on care since they are not paying the bill. And the Democrats’ plan won’t change this.
“Obamacare will mandate, rather than replace, this inherently irrational system, by penalizing employers of 50 or more people who do not provide health insurance to their employees.” Hansen writes. “It is hard to imagine a surer way to diminish freedom, efficiency, the responsibility of America’s citizens, and the number of jobs our economy creates.”
Hansen advocates for Health Savings Plans, which encourages Americans to shop prudently for health services because they are spending their own money and saving what they don’t use.
You can read Hansen’s full article and his proposed reforms by clicking here.
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