“Unfortunately, the most recent GOP health care ‘reform’ is simply another band aid on a hemorrhaging wound…”
Obamacare has been a travesty. The program has left millions uninsured, has been correlated with a steep rise in insurance premium prices, is an administrative mess, and has done little to address many of the fundamental problems with the American health care system. Unfortunately, the proposed Republican health care plan, the “American Health Care Act,” might simply be another dose of the same bad medicine.
For years now, the GOP has attacked Obamacare, and rightly so. After Donald Trump won the presidency, however, deep rifts within the Republican Party and the lack of an actual concrete plan for health care reform became obvious. Now, the GOP is finally putting forward their plan, but it already seems to be a rehash of many of Obama’s ideas, is full of holes, and features numerous unpaid provisions.
American Health Care Act: Full of Holes, Allegedly Obamacare 2.0
So, what exactly is the GOP Plan? First, protections for preexisting conditions, as well as allowing children to stay on their parent’s health insurance until age 26, will be maintained. Many of the restrictions placed on health care insurance plans, however, will be lifted. Americans will no longer be taxed for not having health insurance, but insurers will be able to charge up to 30% more for people who didn’t have a health care plan for more than 63 days.
The taxes that helped pay for Obamacare will be eliminated, as will the subsidies. Instead of subsidies, people will receive a tax credit if they earn under $75,000 dollars a year. States will also be given grants so they can formulate their own policies. How all of this will be paid for remains unclear.
Some of the strongest critics of the so-called American Health Care Act have actually been Republican members of Congress. Rep. Jim Jordan (R-Ohio) has expressed outrage at the bill’s many provisions to keep parts of Obamacare in place, including the alleged “Cadillac tax”. Rep. Justin Amash (R-Mich.), meanwhile, slammed the bill as “ObamaCare 2.0”. Democrats, for their part, have also blasted the bill, alleging that millions will be left uninsured. Conservatives and liberals alike have slammed the bill for allegedly being unpaid for.
Perhaps the Market, By Itself, Isn’t the Answer For Health Care
Before you get out your pitchforks, let me state something: I fully believe in the power of the free market. Perhaps no other institution has generated so much prosperity for the American people as the market has. At the same time, I don’t believe that the free market is an omnipotent God, or a panacea for all ills.
It’s important to acknowledge that markets rely on two things to function. First, people must have a large number of choices. Second, they must possess enough knowledge of what they are buying to make a well-informed decision. This isn’t me speaking, by the way, but instead Adam Smith, the founder of modern economics.
Markets are perfect for most goods and services. If you go to the mall to buy shoes, you can choose from a variety of stores, shoe brands, and styles. You will also know enough about shoes to make an educated purchasing decision; however, is that true for health care? First, health care is often provided in response to emergencies. If you get into a car accident, you can’t call around getting price quotes. Second, many hospitals have de facto monopolies for given areas, limiting your choices. Further, even for non-emergency care most of us aren’t nearly well educated enough to make informed decisions.
This raises an important question: is the market, by itself, appropriate for the provision of health care? Currently, the United States spends an absurd 18% of its GDP on health care. This is far more than most countries with universal health care systems spend.
So, yes, efforts to genuinely reform the American health care system should be applauded. Unfortunately, the most recent GOP health care “reform” is simply another band aid on a hemorrhaging wound. And as powerful as the market is, we need to ask ourselves honestly if the profit drive is the proper driver for the health care system or if more fundamental reform is needed.
Brian Brinker is an OpsLens Contributor and political consultant. Brinker has an M.A in Global Affairs from American University.
