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Monday, September 17, 2007
Rich Lowry :: Townhall.com Columnist
HillaryCare 2.0
by Rich Lowry
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Will Congress pass Obamacare by the end of the year?

When it comes to health care, Hillary Clinton is never going to let her name be associated with the words "radical overhaul" ever again. Or, if she can help it, with massive bureaucracy or new taxes. That's what happened in 1993 with her health-care plan as first lady, and, as she never tires of saying, she has "the scars to prove it."

HillaryCare 2.0 is an entirely different enterprise, or so she would have us believe. It's the "American Health Choices Plan." It "builds on the current system to give businesses and their employers greater choice of health plans," while imposing "no overall increase in health spending or taxes." It's the all-things-to-all-people, sweetness-and-light, all-benefits-and-no-costs health-care plan of 2007.

It's also a sign of how she has wised up since her famous debacle early in her husband's first term. For a liberal seeking to expand government-run health care, it's not necessary to create new, elaborate governmental mechanisms that are vulnerable to parody and frightening to voters. Simply building on the status quo is enough to hasten us toward national health insurance.

That's because we have a hybrid system of private insurance and government health care that is increasingly tilting toward government. As the conservative writer Ramesh Ponnuru points out, only 12 percent of health-care costs are paid out of pocket, and the government already pays almost half of health-care costs. Liberals need only push this system toward its logical conclusion.

Because the private health-insurance market doesn't function properly, the government is left to pick up the pieces. But it is government policies that distort the health-insurance market in the first place. Ideally, people would pay for their own health insurance, the way they do with, say, auto insurance. But the tax code favors insurance that people get through their employers.

This creates all sorts of problems. Because employers pay for their insurance, for most people the costs of health care are essentially hidden. They have no incentive to shop around for cost-effective plans. Meanwhile, when people lose their jobs, they tend to lose their insurance -- exactly when they probably need it most.

This creates an expensive system that's anxiety-inducing for people who worry about losing their insurance. The way the system is set up makes it difficult and expensive for individuals to buy insurance, which is one reason why 47 million Americans are uninsured.

Clinton's plan would make this ramshackle system worse. She proposes more regulations on insurers and a mandate on large employers to provide insurance coverage or pay a tax. The regulations will make insurance even more expensive, while the employer mandate would only augment the current senseless system of people getting insurance through their jobs.

This means that the private-insurance market would, in all likelihood, continue to break down. And, of course, government will be there to keep increasing its market share. As Michael Cannon of the Cato Institute points out, Clinton proposes widening the availability of every government health-care program at hand -- Medicare would be extended to the nonelderly; the S-Chip program for poor children would be extended to the middle class; and the Federal Employees Health Benefits Plan would be extended to all. And all without the taint of a "radical overhaul."

Back in 1993, the burden of proof was on Clinton to prove the necessity of her health-care ideas. Now, the burden of proof has probably shifted to her opponents, and she benefits from the fact that Republicans have endorsed some of her specific proposals (including an "individual mandate" that everyone get insured). In short, she re-enters the health-care debate from a position of strength.

Lately, Republicans like President Bush and Rudy Giuliani have gotten into the game, offering forward-looking ideas to try to create a health-care market where individuals can buy their own insurance. That would be the best health-care reform, but HillaryCare 2.0 looms, more cautious and therefore more plausible than her first act.

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About The Author
Rich Lowry is author of Legacy: Paying the Price for the Clinton Years .
 
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Frog's questions 9/18/07-4:24 pm
Dear Frog, Thank you for taking the time to visit my web site, consider my proposals, and then develop some serious questions. My responses have been developed in various chapters in my book. They are simply too long to be posted in a comment. More specifically, questions 1 and 5 are discussed in chapter 3, which deals with how I fund the single payer system I have proposed. For your 2nd question go to chapter 2, which is a lengthy discussion of the doctor---patient relationship. For question 4 concerning cost control and unbridled, egregious profits see chapter 4 which discusses how a single payer could function to control costs while maintaining profitability for our health care businesses. Regarding your 3rd question, incentives for medical advancement, I do not specifically discuss this in my book but if you contact me at my web site e-mail, doctork@equalhealthcareforall.com, I will be happy to discuss this issue with you.
Thank you,
R. Garth Kirkwood M.D.

Ever heard of the 9th & 10th Amendments?
I asked a Democrat candidate for office, Ron Wyden of Oregon, actually, if he could recite for me the 10th Amendment. He couldn't. I don't think any Democrat can. Even if they could, they would neither understand or apply the meaning of these last two, and arguably most crucial, amendments.

To the supporters of this so-called health care plan, I always ask why is it fair for me to pay for your health care? Why is it my fiscal responsibility as a citizen to pay for the health care, or for that matter education, welfare, housing, and retirement of people I don't even know? Please, when you answer, stay on topic. I'm not talking about roads, police, fire, or other infrastructure needs that are all, universally needed to support a marketplace.
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