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Monday, July 26, 2004

A new model for health care in the U.S.

[Building a Better Health Care System, National Coalition on Health Care, July 2004.]

The much-anticipated bi-partisan National Coalition on Health Care report finally hit the public recently. As was predicted here a short while ago, a key component of the plan is universal coverage achieved through expanded public programs, employer mandates and higher taxes.

Unless we improve the quality of care, we will not be able to manage costs or afford universal coverage. Unless we manage costs effectively, we will not be able to achieve equitable financing or cover all Americans. And unless we assure coverage for everybody, we will be unable to make the system less complex, establish a level playing field without cost-shifting, or create a truly competitive health care marketplace.

While it is impossible to argue that the nation's health care system is in need of reform, to state that equity, efficiency, simplicity, or effectiveness will arise from a greater government role in medicine is to reveal a dangerous naivete regarding economics and public choice. Only by restoring the role of the market in health care can this broken system be repaired.

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