Thursday, February 17, 2005
On Gary Becker's and Judge Posner's blog, Judge Posner poses some interesting ideas regarding the future of Medicare and Medicaid. He states,
. . . . As a matter of economic principle (and I think social justice as well), Medicare should be abolished. Then the principal government medical-payment program would be Medicaid, a means-based system of social insurance that is part of the safety net for the indigent. Were Medicare abolished, the nonpoor would finance health care in their old age by buying health insurance when they were young. Insurance companies would sell policies with generous deductible and copayment provisions in order to discourage frivolous expenditures on health care and induce careful shopping among health-care providers. The nonpoor could be required to purchase health insurance in order to prevent them from free riding on family or charitable institutions in the event they needed a medical treatment that they could not afford to pay for. People who had chronic illnesses or other conditions that would deter medical insurers from writing insurance for them at affordable rates might be placed in “assigned risk” pools, as in the case of high-risk drivers, and allowed to buy insurance at rates only moderately higher than those charged healthy people; this would amount to a modest subsidy of the unhealthy by the healthy.
There are some interesting thoughts in the entire piece and I highly recommend it. It is time to re-think how we can provide greater health coverage, if not universal health coverage, for our population. I don't necessarily say that I agree with this (and I am not sure that insurers would ever agree to such reforms) but I do think that it is helpful to have intelligent individuals debate the manner in which we provide health care and urge solutions that would provide greater access. [bm]