Townhall.com, Where Your Opinion Counts
Talk Radio:   Bill Bennett   Mike Gallagher   Dennis Prager   Michael Medved   Hugh Hewitt   
BREAKING NEWS  LeftArrow - Townhall.com : Conservative, Political, Republican   RightArrow - Townhall.com : Conservative, Political, Republican  
Columns, funnies & more in your inbox!
  • Check the boxes and send us your email address to receveive your free newsletter
  • Your daily must-read of conservative columns, cartoons and news. Coulter, Sowell, Krauthammer and more.
  • Townhall.com’s weekly inside scoop on what’s happening behind the scenes in the world of politics. When news breaks, we report.
  • Signup to receive the latest daily Townhall cartoons
Monday, March 26, 2007
Herman Cain :: Townhall.com Columnist
Universal Choice Can Fix the Health Care Roof
by Herman Cain
Vote on It:
Average Vote:
[+] Text [-]
 
 
Poll
Was the Copenhagen Global Warming Summit Walk-Out a Win for the U.S.?


The socialists among us object to universal choice because they fundamentally believe that government can spend people's hard-earned money better than the person who earned it. The bureaucrats object to universal choice because it would force them to cut wasteful spending to "offset" the "lost" revenue from allowing the deduction. That's political speak for "our job is to continue to rearrange the deck chairs on the Titanic."

Even with universal choice, the liberals will still scream about the 47 million people who do not have health care. They will ignore the 63 percent of the uninsured who work for small businesses that cannot afford health insurance coverage because the costs keep rising faster than their profits. Conservatives ought to counter with the 253 million people who have private health insurance that four of the presidential front runners want to take away.

As I stated on an NBC health care special in 1994, if you have a leak in the roof of a building and you know that the roof is leaking, you don’t blow up the building to fix the leak in the roof. That's what total government control would do to our health care system. The system will work if government would get out of the way. We don't have to blow up the system to fix a few leaks.

Universal deductibility would stimulate universal choice, which would fix the leak in our health care system's roof while making the building stronger.

The free market system, in which the consumer has access to information, choices and his own money, has driven down the prices of all goods and services that government has not overregulated or over-controlled. With a simple change in the current tax code to eliminate discriminatory deductibility for health insurance and eventually health care costs, free market dynamics can solve another problem that Clinton, Obama, Edwards and Romney want to make worse.

Universal choice in health care is a choice the public must demand. Otherwise, they will have to live with the disease of socialized health care.

1 2
| Full Article & Comments | < Previous
Share:
Vote on It:
Average Vote:
 
About The Author

Herman Cain is the National Chairman of the Media Research Center’s Business & Media Institute. He is the former president and CEO of Godfather’s Pizza, Inc., and currently is CEO and president of T.H.E. New Voice, Inc., a business and leadership consulting company.

Be the first to read Herman Cain's column. Sign up today and receive Townhall.com delivered each morning to your inbox.

More money, less bang
Do Americans pay more and get less from their health care bucks than similar countries?

A Google on some of the words quoted in "study" comments here led to:

http://www.cmwf.org/usr_doc/Schoen_natscorecard_chartpack_955.ppt

Slide number 58 shows two charts of money input to health care.

You can see a stripped version of the worst of the charts at:

http://www.cmwf.org/usr_doc/site_docs/annualreports/2006/msg_pres06.htm

For those who don't download .ppt files, slide 58 shows under the odd title, "Efficiency", graphs of several OECD nations' average spending and total percent of GDP spent for health care. The numbers for all the nations are clustered close together at the left end of the line charts in 1980. They all go up, with the US splitting from the others and going up much more, through 2004.

What the charts say: Apparently, either the US system changed in 1980 and beyond, or the others all changed, or both. Or maybe before 1980, the US was below the others and the lines simply crossed in 1980, giving someone an opportunity to create a clever graph. Or maybe the US was above the others before 1980 and simply did good in 1980. Whatever. Neither graph is on a log scale, as would certainly be appropriate for the spending graph, if not the %-of-GDP graph. I learned long ago that when someone feeds me a non-log graph for a log function they are either, (A) trying to fool me or (B) innumerate. But, let's cut 'em some slack here. They really did the sort of in-depth research that's necessary to run a non-market based, centrally controlled system.

BTW, one can intuit where the study producers are coming from. They have lots of race-based charts. And many of their metrics of "desired outcomes" are for universal access ... as opposed to, for instance, innovation pipeline diameter.


One very frustrating thing is that this study often alluded to big disparities among states - without showing them! This is reminiscent of the education studies that show how the US educational system is so bad relative to other nations - until you break out the states and find out that a US state is just fine if the state is "close to Canada". Or is Iowa. But not Mississippi.


So what are "desired outcomes"?

If the desirable outcomes are defined by those on one side of the debate, then there will be no surprise what system yields desirable outcomes. For instance, an oft-used desired outcome for health care systems is life span. Huh? Yeah, life span is easily measured, but are you excited about the differences between industrialized nations? Move to Japan and life longer? I don't think so. Would not a far better measure of outcome success be whether consumers of health care themselves think the outcome is better? Unfortunately, such a measure is rather hard to draw a bead on, isn't it? You could, for instance, say that if people are spending a higher percentage of their money on something, then that something is a big success - a desired outcome!

Apparently, no one has ever figured out a good way to measure whether people are satisfied with a socialist system. Heck, in non-socialist systems, no one has figured it out all that well. Don't believe that? Try pricing a new product. Without a dart board.


So, Mencken, posters here can be excused for ignoring this study's foregone conclusions. But, those on the market-oriented side of the debate should certainly get a clue from the study and put out their own "study" in which they define the inputs and desired outputs. People without fixed beliefs might then at least compare objectives.

Market-oriented people could, for instance, try to show that a market oriented system is best in a world where the "health care" of 1980 would be as unacceptable today as today's "health care" should be in 2030.


In the US there are states trying various wrinkles. One can't help but be hopeful that the facts will sort themselves out. People can still vote with their feet in the States.

Skunk in the cabbage patch
Cain wrote these two statements at the beginning and end of the article. I think they are key to his suggestion. They are: "Namely, the U.S. should eliminate the deductibility discrimination between employers and employees for health insurance premiums." AND "With a simple change in the current tax code to eliminate discriminatory deductibility for health insurance and eventually health care costs, free market dynamics can solve another problem that Clinton, Obama, Edwards and Romney want to make worse."
What is the discrimination, Mr. Cain? You'll pardon me if I take a big swing at it and miss. Me thinks you want to end employer paid health insurance premiums that are tax free to the employee. You want the employee to pay the premium and deduct the cost. That amounts to a rather large tax increase on those who have this benefit.
That's what I think you are really making a stink about, Mr. Cain. I don't like that!
Sign Up to Post Your CommentsSign Up to Post Your Comments
If you are already registered, click here to login. Otherwise, please take a few seconds to register with Townhall.com. Once you sign up, you’ll be able to post your comments immediately, use the action center, get podcasts, and more!
Note: Fields marked with a red asterisk (*) are required.
Salutation:
First Name:
*
Last Name:
*
Email:
*
Nickname:
*
Note: Nick name will be shown when you post comments.
Address 1:
*
Address 2:
City:
*
State:
*
Zip:
*
Phone:
      
Your daily must-read of conservative columns, cartoons and news. Coulter, Sowell, Krauthammer and more.
(Bi-Weekly) We highlight the best opportunities from our partners for surveys, action items and more.