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Ryancare is failing. What Should Happen Next? By Tho Bishop

Big Al
March 24, 2017
Home | Blog | Ryancare is Failing — What Should Happen Next?

Ryancare is Failing — What Should Happen Next?

TAGS Free MarketsHealthU.S. Economy

16 HOURS AGO

The beltway Republicans are scrambling now that it seems the Obamacare replacement package put forward for Paul Ryan and endorsed by Donald Trump can’t get enough support to get through the House. The failure of the American Health Care Act should surprise no one, as it is a piece of legislation that managed to please no one. The Freedom Caucus, made up of the “true believers” of the Tea Party, balked at its similarities to Obamacare, while more moderate members found the bill’s modest change to the ACA too radical for their tastes.

While the failure of the Ryan/Trump/Whatevercare represents a political defeat for the president and GOP leadership, it is probably a net-win for those who oppose socialized healthcare. After all, nothing could be more beneficial to the Bernie Sanders-wing of the Democratic party than for the nominally “free market” Republicans passing its own brand of reform that fails to fix America’s insurance market. Much like the 2008 financial crisis, its collapse would absurdly be seen as a defeat for “capitalism” and be used as justification for even more government control.

The unfortunate reality going forward is that more significant approaches to healthcare reform, such as the bill pushed by Senator Rand Paul and his allies in the House, are unlikely to find enough support in the Senate. Further, considering the way the media portrayed the Congressional Budget Office’s analysis of the ACHA, which noted that 14 million consumers may no longer purchase healthcare without an individual mandate and therefore are “losing coverage,” any healthcare plan that comes close to pricing real healthcare risks (like properly accounting for the costs of those with pre-existing conditions) will be skewered relentlessly. This is all before even addressing the problems caused by Medicare and Medicaid.

This is precisely why attempts to push grand “free market” reforms in the Federal government end in failure. Few politicians in DC have the economic lens required to appreciate how necessary these tough decisions are, so Federal politics simply becomes a race to see which party can buy more votes than the other.

Given this grave reality, is there anything that can be done to improve American healthcare?

The answer is it is already happening because of the market.

Increasingly, doctors are abandoning the broken insurance model and claiming their own independence by offering direct patient care. As Business Insider profiled recently, around 1,000 doctors (and counting) are moving toward charging patients a monthly membership fee for service and then patients pay a la carte for the services they actually need. This allows clinics to eliminate most of the administrative costs and it restores the relationship between doctor and patient that has been undermined by a century of government intervention. For more specialized care, clinics such as The Surgery Center of Oklahoma, also use a cash-for-service business model without the monthly fee.

Given that this is happening naturally on the market already, the legislative focus for those in Washington concerned about American healthcare should be preventing any future laws and regulations that would destroy this model going forward. Further, rather than trying to completely overhaul Obamacare, simply eliminating the individual mandate tax and allowing Health Savings Accounts to be used for healthcare membership would be subtle ways of empowering the market to revolutionize American medicine. This should be coupled with real tax cuts, not “revenue neutral reform” to help Americans keep their own hard-earned money to help pay for it.

Steps can also be taken on the state level to further empower medical professionals. For example, expanding the abilities of medical practitioners would help mitigate doctor shortages. Reforms to medical licensing — such as recognizing the real-world experience of military trained medics — would also make it easier for skilled individuals to enter the market.

This more modest approach to healthcare reform shouldn’t be seen as a defense of Obamacare or the status quo. It’s not. Obamacare was a deplorable piece of legislation, designed by people who were either utterly delusional or intentionally crafting a framework that would fail. In a just world, everyone who played a hand in crafting it should be forever stuck with the fruits of their labor for their own personal care.

Yet we can’t be blind to the realities of modern politics — Washington is dominated by progressive ideology in both parties. While the long-term solution to this has to be political decentralization, in the short term we can settle by defending the ability of markets to compete along side government regulated disasters. This was how Ron Paul sought to destroy the Fed, it’s how homeschooling parents are able to free their children from public education, it’s how Patrick Byrne plans to undermine government cronies on Wall Street.

As the Soviet Union was collapsing, Murray Rothbard wrote a paper outlining how to desocialize an economy. Gradual reform would fail, he noted, because “the giant socialist bureaucracy will only seize upon such delay to obstruct the goal altogether.” Instead, he advocated prioritizing the protection and normalization of already established black markets.

America doesn’t yet have completely socialized medicine, but the same approach is true here. As long as we preserve the functioning markets that currently exist, and allow them to grow, Americans can maintain hope for a functioning healthcare system in the future.

The same cannot be said for Washington politics.

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Discussion
20 Comments
    CFS
    Mar 24, 2017 24:18 PM

    The problem was that Obamacare was introduced by a most eloquent Traitorous Marxist without discussion as to affordability.
    It was never affordable; it never will be affordable with modifications, but everybody now will feel a loss for something they never really had.
    Win or lose; neither the new bill, nor the status quo will work.

      Mar 24, 2017 24:35 PM

      I agree with th basic premise of your comment. But, you know that!

    CFS
    Mar 24, 2017 24:34 PM

    The House just went into recess without a vote on healthcare,……

    CFS
    Mar 24, 2017 24:53 PM

    WASHINGTON (AP) — A federal inspector general has launched an inquiry into the Trump administration’s decision to pull advertising for HealthCare.gov in the closing stretch of this year’s sign-up season, according to a letter made public Friday.

    The unexpected ad pullback soon after President Donald Trump took office was termed “sabotage” by Democrats and former Obama officials. The new administration said the ads were a waste of taxpayer dollars.

    In a letter to Democratic Sens. Patty Murray of Washington and Elizabeth Warren of Massachusetts, the Health and Human Services Department’s inspector general’s office said it has begun a “fact-finding review.”

    Investigators will look at the Trump administration’s actions to stop paid advertising and temporarily suspend other outreach. They’ll also review the effect on enrollment, the letter said.

    Former Obama officials were outraged by the new administration’s actions a few days before the Jan. 31 close of open enrollment. They said there’s usually a surge at the end sign-up season, and the ad pullback discouraged prospective customers. Murray and Warren asked the inspector general to investigate.

      Mar 24, 2017 24:09 PM

      I woud assume that Patti and Elizabeth are justifiedin their actions. How about you?

    CFS
    Mar 24, 2017 24:58 PM

    Rome (AP) Friday. Tomorrow, Saturday marks the 60th anniversary of the signature of their solemn bond in Rome, which started with six founding nations but steadily grew to 28. But the biggest setback in the EU’s history looms next week, when Britain officially triggers negotiations to become the first nation to leave the bloc.

    Francis said the EU was called “to care for the ailments that inevitably come with age, and to find new ways to steer its course. Yet unlike human beings, the European Union does not face an inevitable old age, but the possibility of a new youthfulness.”

    At the Sistine Chapel, EU leaders posed with Francis in front of the Michelangelo fresco, which depicts the end of the world. Six decades ago, few would have imagined the end of the EU could even be discussed.

      Mar 24, 2017 24:12 PM

      Given a number of current issues, those of us who read and believe the mojority of the Bible do not find this action by the Europeans to be at all inappropriate.

      You have to admit that with the current geo-political climate, that even is possible.

    Mar 24, 2017 24:56 PM

    The National Socialist Republicans had eight YEARS to get their act together. Just proves they had no intent to repeal Odumbo Care.

    Communist Demokrats/National Socialist Republikans – two sides of the same Marxist coin.

    The only political difference in the two parties is how much they want to tax the private sector. Both sides support bigger government, higher taxes, gun control, abortion, open borders, endless warfare, and socialized health care.

    You all got what you vote for so shut up and swallow!

      Mar 24, 2017 24:13 PM

      I’m sure you are aware that is not how I vote.

        b
        Mar 24, 2017 24:40 PM

        Actually, if you voted for either party you voted for exactly what we got.

          b
          Mar 24, 2017 24:09 PM

          Bill Cooper
          Member of the intelligence briefing team of the commander in chief of the united states pacific fleet 1971-72
          https://youtu.be/osVIzSdxguA

          Mar 24, 2017 24:25 PM

          b….Anybody who voted is a fool…Both partys rely on the fools voting for them , both parties love the fools voting for them…both parties dont care wether they win or lose , they take their turns…..Both partys ALLWAYS win…Because the “FOOLS” always vote. Stop fecking voting..it only encouriges the “BASTARDS”………………Ranting tony…

            b
            Mar 24, 2017 24:53 PM

            yupper Tony.
            Voting only tells them the % of people they have duped.

            The “rulers” have nothing to worry about, we will have one world government, one religion and one race.

            Mar 24, 2017 24:49 PM

            T, There is nothing you can do about it, you just have to try and be happy. Every time I read the news these days it gets depressing, surround yourself with things that make you happy and live out your short existence on this planet by enjoying things that make you feel good about life. Like this song by “The Rascals”. https://www.youtube.com/watch?v=cJqjlFGZxtE

            b
            Mar 24, 2017 24:52 PM

            Deputy chief economist cibc.
            on cbc.
            debt to income is useless indicator.

            He says ” guess what, next year debt rises more, system is designed that way. Whats the problem?” “been that way for years”, well, he got that right.

            Maybe everything I read is simply fear mongering.
            austrian school? whacko conspiracy nuts obviously.

    CFS
    Mar 24, 2017 24:04 PM

    Epstein end of week TA
    https://youtu.be/NdPwCUAKfG0?t=32

    Mar 24, 2017 24:01 PM

    Canada’s healthcare system has functioned really well for the last fifty five years since it began in 1962. I have my doubts whether it will remain a viable option in the future as the baby boomers live longer and are now retiring en masse. Our country is deeply in debt at all levels of government and it will be hard to keep it alive without massive cuts to it’s budget.
    One bright spot is how quickly the healthcare system has utilized technology to keep prices reined in and speed up the delays in service.

    Mar 24, 2017 24:56 PM

    first immigration ban failed
    second health care bill failed
    third tax reform will probably fail
    he will also probably be president for one of the worst market crashes in history.
    he will go down as one of the worst presidents in american history
    still cant believe americans voted for this guy
    get rid of this turnip already.

    Mar 24, 2017 24:00 PM
    Mar 24, 2017 24:09 PM

    Ranting online will not help to manage one’s anger. “It’s hard to mistake the Internet rant, often characterized by its run-on sentences, inflammatory remarks, capital letters [or no capital letters at all] and liberal use of the exclamation point. Often rooted in a heightened level of expressed emotion, uncensored anger or frustration, the rant is accessible to anyone armed with a computer keyboard and an Internet connection.”

    “The expression of anger only has long-term, positive consequences when we understand the roots of the anger. And when we set out to resolve the conflicts we have with other people, and within ourselves.”

    http://www.pbs.org/newshour/updates/many-rants-online