Patients need a dose of free market innovation
Earlier this year, a manned rocket launched from the continental U.S. into earth’s orbit for the first time since 2011 — a mission that was spearheaded by private industry and the first step towards commercial space flight. On a similar note, Amazon recently unveiled its first electric delivery van — a fleet of vehicles expected to be dropping off packages at your doorstep as early as next year.
What do these innovations have in common? They are created by private businesses fueled by the entrepreneurial spirit. Left up to government, not only would it take longer to reach these milestones, but the technology would likely be more costly and lacking. Simply compare the U.S. Postal Service to Amazon or FedEx. Which group would you trust to get your package to the destination on time without falling into a budget deficit?
Healthcare is an area of the U.S. economy that needs a dose of free market innovation. The current quasi-private system, set-up by the Affordable Care Act (ACA) and largely controlled by the government, is characterized by rising costs, dwindling choices and a falling quality of care. Washington politicians and insurance bureaucrats have forced themselves into the exam room as the patient-doctor relationship is slowly dismantled and medical professionals become slaves to paperwork and compliance.
What do patients get in return for seeing the back of their physician’s head more often? A bigger bill and a shrinking pool of choices. Individual health insurance premiums have risen by 123 percent since 2013 because of the ACA, while family plans have jumped by 174 percent. Roughly one-third of Americans have access to two or fewer options on ACA exchanges; many only have access to one.
Everyone agrees the current system is faulty and needs to be addressed. Most Democrats who previously supported the passage of the ACA even acknowledge the need for reform.
But instead of untangling Uncle Sam from the network of private practices and insurance providers, they’ve decided to add even more government into the equation. Medicare for All or the public option, which is simply another step towards government-run healthcare, enjoy popular support.
The move is akin to adding gasoline to an already out of control dumpster fire. What could go wrong?
Fortunately for us, the United Kingdom provides a useful case study of socialized medicine. The waitlist for treatment in the U.K. currently stands at 4.2 million people and the National Health Service Confederation estimates the line will extend to nearly 10 million by the end of 2020. I hope no one is in a hurry to get a hip replacement. Moreover, while the wait time in the U.S. to see a specialist is 20 days, the English have to stand by for nearly 20 weeks.
Rather than following in the U.K.’s footsteps, the Trump administration has proposed slashing government red tape and injecting transparency back into the healthcare system so the free market can work its magic.
The reform package, dubbed the America First Healthcare Plan, will provide patients with an abundance of healthcare choices at lower costs, while strengthening the relationship patients have with their doctors.
The proposal mirrors the Healthcare for You framework created by my organization, the Job Creators Network Foundation, and Physicians for Reform. Americans deserve personalized healthcare that fits their unique circumstances, rather than a one-size-fits-all government provided plan.
Without government shackles, healthcare could be offered to Americans in alternative ways that benefit everyone. Patients, for example, could leverage Health Savings Accounts to more easily access Direct Primary Care — a healthcare offering similar to that of Netflix. Participants pay a reasonable monthly cost to access basic care without insurance middlemen jacking-up the prices.
LASIK, an eye surgery that operates outside the traditional healthcare system, is another example of how innovation could sprout. Over time, the procedure has not only become safer, but the price has plummeted by roughly 30 percent over the past decade. Imagine applying similar innovation and cost mechanisms to medical services across the board.
The free market works in nearly every other sector of the U.S. economy. Although protections need to remain in place for those with preexisting conditions, there’s no reason it shouldn’t be applied to healthcare. It’s a win-win strategy for all Americans.
Elaine Parker is the president of the Job Creators Network Foundation.