Three Ways to Fix Health Care Without Increasing the Size of Government

Dont allow yourselves to be lied to. The Federal government has had their hands in the health care industry for years. It is because of them that costs have skyrocketed. There are three main reasons that the costs have gone through the roof, but first I want to ask a question. Have you ever noticed that the price of a product gets cheaper as technology advances? Computers and cell phones are good examples of this. So why is the opposite happening for the health care industry? The key to cheaper AND better products is competition. When consumers have the power to choose which company provides the best product at a better price, other companies MUST adapt or risk going out of business. There are three federal policies which stifle competition, therefore driving up costs and deteriorating quality. Here are the big three.

1. The FDA

First of all, it is in a drug companies best interest to sell a product that is both effective and safe. So you know they would be testing their own products first. Second, there needs to be private drug testing companies. Companies that have to succeed or fail based on reputation.The FDA takes an average of about 8-15 years to approve a new drug and could cost hundreds of millions of dollars. Those costs are handed directly to the consumers. Now lets talk about well known private testing company. Underwriters Laboratories or UL is a private company that tests electrical equipment. They have to compete with other private electrical testing companies so they need to maintain a good reputation with consumers. If UL approved a toaster oven that lead to 1000 homes burning down, UL's reputation would be horrible and they would punished in the market place. There is no reason we cant have similar companies testing drugs. There is the argument that you would have people dying because the private companies wouldnt be as efficient as the FDA, but what about drugs that are approved for one thing, but in other countries are known to be helpful for other diseases? How do you justify the people who die waiting for 10 years so that the FDA can approve the same drug for two different diseases? Without competition in drug and medical equipment testing, the FDA can do whatever they want, approve whatever the want, and NEVER be put out of business for being corrupt or failing to approve something quick enough, or even approving dangerous drugs.

2. Tax codes.

In the 1970s, the Federal government changed the tax codes to allow employers to buy group insurance plans TAX FREE to provide benefits packages to potential employees. When our employers are providing us with health insurance, who are the actual customers to the health care providers? Its not us, so why do the health care providers have to sell a good product? They dont have to because companies will continue to buy group plans for benefits packages. You dont get auto, homeowners or any other insurance from your employer, so why health insurance?? How about they change the tax code so that we the individuals can buy plans tax free? Food, clothes, health insurance tax free sounds fair to me

3. State Lines Laws

For some reason the Federal government prohibits individuals from buying insurance plans from companies outside of the state they live in. Some states only have one health care provider. Without another company to compete against, health care providers can charge whatever they want, at the same time not having to worry about the quality of their product. They have no one threatening to put them out of business. Remember, without competition there is no way for consumers to regulate an industry. It should be up to us, the consumers to regulate industry, NOT the government. If this law, along with the other two issues discuss above were gotten rid of, it would open the door to not only competition, but many new business' and jobs being created.

As you can see, the Federal government has caused the problems which we now face. Of course they swoop in and say "only government can fix this major crisis", but they are reason we are in this position in the first place! Remember what the idea of insurance is. It is there in case of emergencies. You do not use your auto insurance for an oil change right? So why do we need to use it for everyday doctors visits? We shouldnt have to. It should be cheap enough for us to pay cash. When the government steps in and decides to regulate an industry, it usually restricts competition and the result is a higher cost to us the consumer. Of course, the health insurance companies are just as guilty as the federal government because they are the ones who request federal regulations. It is well known and documented that big business seeks government regulations because the big corporations have the finances and power to meet stiff government guidelines. The regulations in turn make it harder for newcomers to enter the regulated industry. Big business and big government are not enemies. Its actually the exact opposite.