Harris and Trump Have No Plans to Substantially Liberate Health Care
Oct 3, 2024
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Michael Cannon, an expert on health care policy, discusses the growing issue of government overreach in the healthcare sector. He critiques the lack of substantial reform plans from both Donald Trump and Kamala Harris, pointing out their failure to address the inefficacy of current government interventions. The conversation dives into the opaque nature of healthcare pricing and the importance of consumer empowerment to foster transparency and lower costs. Cannon emphasizes that without meaningful change, fiscal burdens will only increase.
Government control of health spending in the U.S. significantly undermines affordability and access, contrary to proponents' beliefs.
Deregulating health insurance could potentially enhance coverage access and lower costs by encouraging healthier individuals to participate in the market.
Deep dives
Government Control of Healthcare Spending
The podcast highlights the significant role of government in the U.S. healthcare system, which currently controls approximately 85% of health spending, placing it just behind Cuba in terms of government influence. This level of control has not resulted in affordable or universal access to healthcare; instead, Americans face extremely high prices and gaps in services. Proponents of Medicare for All argue that increased government control should lead to lower costs and better service, yet this is not reflected in reality. The ongoing political discourse does not adequately address how to effectively reform healthcare to deliver real improvements for the population.
Deregulation for Healthcare Affordability
The podcast discusses the potential for deregulating health insurance as a strategy to make healthcare more affordable and universal, particularly through suggestions from political figures like J.D. Vance. If successful, deregulation could enable younger, healthier individuals and others to access comprehensive coverage at premiums significantly lower than those under the Affordable Care Act. This shift could lead to a healthier insurance pool, as it would reduce the number of lower-risk individuals participating in the Obamacare markets, thereby making costs more transparent. The reluctance of Democrats to endorse such ideas stems from concerns over increased visibility of costs and the potential for diminished popularity of existing healthcare programs.
The Need for Consumer Control and Price Transparency
The podcast emphasizes the detrimental effects of government intervention in the healthcare market, which has led to a lack of price transparency and control by consumers. Mandated price transparency alone is insufficient; effective reform would involve empowering consumers to control healthcare spending, ultimately leading to price reductions and better quality care. Research shows that when consumers have control over their healthcare dollars, they demand price information and seek lower-cost alternatives, resulting in a more competitive market with falling prices. The current failure to address fundamental issues surrounding consumer control continues to hamper efforts to reform the healthcare system meaningfully.
Federal health programs contribute to massive and unsustainable government overspending. Government control of most health care dollars continues apace. Neither Donald Trump nor Kamala Harris has a plan to fix it. Michael Cannon explains.