CONGRESSIONAL CANDIDATE HAUSMAN LAYS OUT ‘FREE-MARKET PRESCRIPTION FOR HEALTH CARE REFORM’ 03/15/10

CONGRESSIONAL CANDIDATE HAUSMAN LAYS OUT ‘FREE-MARKET PRESCRIPTION FOR HEALTH CARE REFORM’

MEDIA ADVISORY
FOR IMMEDIATE RELEASE
CONTACT: Brad Cummings 502-644-1454 or brad@hausman2010.com

Louisville, KY – During the Grand Opening ceremony for his Congressional headquarters on the corner of Shelbyville and Hurstbourne, Republican Congressional candidate Larry Hausman laid out his ‘free-market prescription for health care reform’.

“It is clear to all Americans that much like our overall economy, the fundamentals of our health care system are far from solid,” said Larry Hausman. “The underlying problem is that there is no financial relationship between consumers of health care and providers of health care.”

Below is Hausman’s entire health care reform plan.

HAUSMAN FOR CONGRESS
A FREE-MARKET PRESCRIPTION FOR HEALTH CARE REFORM

The question at hand is not whether we make changes to the system, but instead what that change looks like. The Republican Party has been painted as the party of no but that is not the entire story. Because government has never proven to be able to control costs in health care or any other venue, I am proudly the candidate of no when it comes to government intervention into our health care system. Instead, we need to find a solution that lowers costs first and therefore allows as many people as possible to purchase affordable coverage. Due to their desire for government run health care, I can only assume the Democrats and John Yarmuth are the party of no when it comes to lowering costs. As a matter of fact, John Yarmuth is on the record stating that under ‘Obamacare’ health care costs will go up. Visit http://www.youtube.com/watch?v=xPnHwAXwWn4&feature=player_embedded at 2:38 in the video.

In any health care solution, it is important that we root it in the free market system. Five years ago, if a consumer wanted to buy a flat screen television, they would have been prepared to spend upwards of $5,000 for a basic model. But because our free market system is predicated on the laws of supply and demand and competition between companies, those same televisions are now anywhere from $300 – $2,000 with better technology and sharper pictures. The same strategy must be implemented in dealing with health care costs.

First and foremost, we must allow insurance companies to sell insurance across state lines. Encouraging competition instead of allowing three or four companies in each state to monopolize the system will bring down costs almost immediately. We must invoke the commerce clause of the Constitution and free up insurance companies to offer products that customers want instead of mandating what those products must be. As an example, if enough people want chiropractic care in their insurance coverage, there will be plenty of companies willing to compete for that market. But no government body should mandate that coverage. Would our state or federal government mandate that each television purchase must include a Blu-Ray DVD player and a surround sound system? Of course not.

Additionally, we need to put the power and reality of health care costs in the hands of the consumer. I will encourage employers to give a stipend to their employees and allow them to choose their own insurance coverage. If spent on healthcare, health insurance, or deposited into an HSA, this stipend would be tax free to the employee. For those paying their way, healthcare and health insurance should be made fully tax deductible. Currently, most consumers do not understand how much their employers pay into the system since premiums are often split between the employer and employee. With a more educated populace and more individuals getting into the private insurance pool, consumers can choose the best and most cost-efficient plan available and therefore give insurance companies an incentive to lower their costs.

Of course, no plan can be considered without a serious look at tort reform. Currently, doctors practice defensive medicine, not because they believe every test is vital but because they fear the repercussions of trial lawyers. We must reign in frivolous lawsuits by capping penalties and demanding that losing plaintiffs be responsible for court and lawyer fees for doctors. This will decrease the number of junk lawsuits, free up doctors to practice medicine as efficiently as possible and ultimately lower health care costs.

Finally, we must deal with pre-existing conditions. While the fundamental problem with covering pre-existing conditions is the potential abuse of consumers only buying insurance when they are sick, something must be done for those who, through no fault of their own, find themselves unable to be insured. What happens to the person who becomes so ill or injured that they can no longer work, lose their benefits and therefore cannot purchase insurance on their own? Or should the 22-year-old who gets hit with a heart murmur be permanently disabled by their inability to buy insurance for the rest of their lives?

To effectively walk this line, I propose a “one strike and you’re in” approach. Every consumer gets one opportunity to buy into private health insurance with a pre-existing condition. After that, it is incumbent on the consumer to continue this coverage. If they elect to drop coverage after that, any medical expenses will be covered out of pocket. This gives a safety net for consumers while still holding people accountable to the edict of personal responsibility that has made our country so great.

Health care is not easy for anyone to tackle. But as the greatest nation in the history of the world, we must find solutions for even the most difficult problems. And we must find these solutions through the free market system that has separated our economy from all other economies.