Another Health Care Proposal
The September 6, 2007 Wall Street Journal had an insightful article on the health care system in Holland. The system’s goals are universal coverage and consumer choice – a combination that is hard to argue against.
Since in 2006, all adults in Holland are required to purchase their own health insurance. There are penalties for failure to do so. Before jumping on that as another government invasion of individual rights, consider the precedents. If you drive a car, you are probably required to buy liability insurance. In most places, the government does not tell you who to buy it from, just that you must buy it or pay a penalty.
Next, insurance companies must accept all applicants, regardless of medical history or pre-existing conditions. The Dutch government does provide subsidies called “risk-equalization” payments for accepting people with certain chronic conditions such as diabetes and about 30 other diseases. The Dutch government also provides support to those who cannot afford to pay the premiums.
Insurance companies can compete on price and coverage. Individuals, rather than the government or employers choose which plans are best for them. This means that employers do not have to provide and administer health insurance plans. Because this makes people more involved with their health care options and more aware of the costs, they will generally make better choices.
The advantages I see for this type of system are: The government does not run the plan so they do not have access to the money collected and cannot blow it as they have done with Social Security, and; Individuals can choose their own insurance plan from a broad offering to meet their own needs. This includes the ability for some to select more expensive policies if they want and can afford them. Universal coverage is still achieved by requiring the insurance companies to accept all applicants.
This type of system could be implemented at either the state or federal level. Although, if implemented at the state level, some provision would be required to accommodate people becoming sick or injured while away from home.