The Free Market And Health Care – Part 2

“What Is the Free-Market Approach to Health Care Reform?” is an article published by the Cato Institute. http://healthcare.cato.org/ The article lists seven reforms to our health care system that would improve health care access, quality, and cost.

Cato Institute’s mission states that the organization promotes policies based on limited government, free markets, individual liberty, and peace. The Cato philosophy supports “a uniquely American solution, one that builds on free markets, competition, and choice.”

We will continue our look at each proposed reform. See Part 1

Reform 3. “Changing from employer to individual insurance requires changing the tax treatment of health insurance.” Employer-provided insurance gives the employed a significant tax advantage over the self-employed. The health insurance of the former is not taxable income while that of the latter is. This is not fair and must be changed. The article recommends that “[w]orkers should receive a standard deduction, a tax credit, or, better still, large Health Savings Accounts (HSAs) for the purchase of health insurance, regardless of whether they receive it through their jobs or purchase it on their own.”

Reform 4. “We need to increase competition among both insurers and health providers. People should be allowed to purchase health insurance across state lines.”

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