By Ken Faulkenberry

The need for health reform, especially in the area of insurance reform is well documented.  Since health care is 1/6^th of our economy the reforms we enact now will have a profound effect on our lives, health, economy, and investments.  The size and importance of these reforms make it important to have broad bipartisan public support to be successful.  In order for the majority of Americans to accept reform, we must lower costs without creating a system of government rationing. Here are reforms, with broad bipartisan support, that help meet President Obama’s goals of lowering costs, increasing access, and providing quality health care. 

Intra- State Competition among the insurance companies would provide much greater choice and lower costs.  Congress restricts purchase of insurance policies to individual states, creating near monopolies for some insurance companies. This is especially true in the less populous states. If insurance companies competed across the entire nation consumers would have dozens or even hundreds of choices and competition would help drive down costs and expand choices.

Tort Reform would make changes in the way claims are filed against health care providers.  Frivolous lawsuits and high damage awards relative to actual damages are driving health care costs up directly and indirectly. The direct costs of high insurance premiums are driving up the costs of care, and driving health care providers out of business, particularly reducing the number of doctors.  The indirect costs of unneeded tests and procedures in order to avoid potential litigation carry costs many times the direct costs. 

Equitable Tax Policies for individuals purchasing health insurance would even the playing field.  Businesses that provide health care get a tax deduction for the expense.  Giving individuals the same benefit would further promote accessibility and fairness, as well as boost portability. Tax fairness will lower cost and eliminate the lack of fairness that creates uncertainty in the current market.  Individual and Corporate plans would be treated equal and make health care insurance more affordable and fair for individuals and small businesses. 

So why are we not getting these reforms? Politicians are telling us we need a government or public option but oppose market based reforms that would help solve the problems. We are told we need the public option due to lack of competition but the same politicians block intra-state competition. We are told we need a public option to bring down costs but the same politicians oppose tort reform and tax equality for individuals. Tort reform is not in any of the health care bills because the writers don’t want to take on the trial lawyers. Tax fairness is not addressed because Corporations have the lobbying ability to keep their tax deductions while individuals lack the resources and ability to fight for equality and fairness.

The costs and deficits current government programs are going to incur make another big government program unwise. Medicare is going broke; Social Security needs reforming or it will not be able to meet its obligations.  Economic growth, corporate earnings and dividends, and the value of our investments are going to be sluggish at best until these looming potential disasters are addressed.  No additional major government programs should be considered with the fiscal incompetence the government has exhibited.

When health care is free (i.e. single payer systems) or hidden (current system), the demand creates shortages that cause rationing decided by the payer (government or Insurance Company).  Reforms that encourage greater competition, personal accountability and choice, preventive maintenance, greater transparency of costs, tort reform, and tax fairness would greatly improve the best and most innovative health care system in the world.

In the next few months, America will make the choice of surrendering our freedom slowly to big government through a public option (or trigger), or demand reforms that meet our goals of lower costs, portability, greater supply of health care providers, increased accessibility, and greater choice and freedom that our country was built on.

Our investments, economy, quality of health care, lives, and the freedom we enjoy will be affected by health care legislation. Let’s do it right!