Bush on Healthcare

Most State of the Union addresses are all pomp and circumstance, with a list of endless and needless proposals that usually involve flying to Pluto or making cars run on sand or something. Last night was generally no different, but I wanted to point out one chink of light in the President's speech: his new healthcare proposal (today's Wall Street Journal has a good editorial on it). It's the first conservative domestic policy proposal he's had in quite a while. While far from perfect, it's a step in the right direction.

The reason why America has the world's most advanced and efficient healthcare is because, compared to other countries, ours most closley resembles a free-market system. But we have a long way to go before we have a truly free market in healthcare: there is still far too much interference by government and employer-based insurance companies.

Bush & Co. essentially want to make buying healthcare like buying a box of cereal: you, the patient, make decisions based on what's most cost efficient for you (and your doctor), instead of just running up costs that you know your employer will pay anyway. By allowing individuals to purchase their own plans tax-free (which employers are already allowed to do), this would be a big step in making the healthcare system more free-market oriented and thus more efficient and affordable.

Pelosi & Co.'s plan is to make healthcare a public good that everyone is entitled to, like public education. While this sounds great on paper, it would stifle the same forces that Bush wants to unleash that would make the system more competitive. Do we really want to make doctor visits like going to Beach High School or the DMV?

If the new Congress actually sat down and realized all the benefits of this new proposal, they'd quickly conclude it would be ridiculous not to pass it. Unfortunately, the Dems are unlikely to do this, but it still should make for a good campaign issue in 2008.