The political party conventions are over, party leaders have written party platforms and the presidential candidates have been selected. Except for minor issues, the candidates agree with their respective party platforms on health care, but unsurprisingly, the difference between Republicans and Democrats is dramatic.
The Democratic platform leads off by asserting that health care is a “right.” (here) No mention is made of cost or of the rationing of health care that exists in countries that have socialized their health care systems. Without actually advocating for a single-payer system, the Democrats and Secretary Clinton (here) want a “public option” in the Obamacare exchanges and want to offer individuals between ages 55 to 64 a chance to buy in to Medicare.
Both of these proposals would compete with private health insurance without meaningful spending oversight. As we have learned from Medicare over the past 50 years, it is impossible to compete with a government/taxpayer plan. Consequently, without actually calling the new programs a single-payer system, the Democrats would achieve a government-controlled health care system for everyone who did not have employer-paid health insurance.
Democrats want to place price controls on insurance premiums and on prescription drugs. For consumers and voters, this sounds very attractive, however from an economic standpoint, price controls are very effective at creating shortages. The Democrats do not address the issue of drug research although they do want to “fully” fund the National Institute of Health. A price control on private insurance companies is essentially the first step to driving them out of business and forcing people into government insurance programs.
The Democratic platform and Secretary Clinton want to expand Medicaid, but oppose more state control of the entitlement.
The Republican platform (here) and Mr. Trump (here) want to repeal the Affordable Care Act and replace it with a more patient-oriented health care system. This begins with insurance reform to reduce the number of required benefit mandates, the purchase of health insurance across state lines and tax reform that would allow individuals the same health care related deductions that businesses now take.
Both the party platform and the Republican candidate want to use block grants for Medicaid which would give states more control of the entitlement and want more price transparency on the provider side of the health care system. There is general agreement on increasing the use of health savings accounts and tort reform.
Neither the Republican platform nor Mr. Trump address Medicare and the ever rising cost of the program.
Although health care represents 18 percent of the U.S. economy and costs continues to rise, the presidential campaigns, to date, have not focused on the issue. Hopefully in the next few weeks, and certainly during the presidential debates, the candidates will address health care reform. The distinction between the Democrats wanting more government control and the Republicans wanting more patient-centered health care could not be more pronounced.
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