Townhall.com has an op-ed by former Senator Jim Talent (R-MO) praising Mitt Romney for the universal health care program in Massachusetts. It’s an interesting read, but I have a couple of thoughts:
The redirection of money from “free care” facilities to health insurance does drive insurance prices higher. Subsidies increase demand. It’s still a net positive from where they were because subsidized “free care” pumps up demand for medical services more than subsidized health insurance. The subsidized insurance is currently means-tested, but human nature will keep bumping that need line up. Eventually Massachusetts should ween people off the government dole altogether, but this is a step in the right direction.
Finally, Governor Romney recognized that competition is the key to the success of any market – so doing what no one had ever done before, he created a new market where consumers can go to pick the health care plan that suits them best. Called the “Connector,” this marketplace is not a new regulatory agency or insurance purchasing pool. It is a place that gives people access to more choices, better information, and lower costs in selecting a private health insurance plan. The Connector also provides a way for individuals to purchase insurance with the same pre-tax advantage given to those buying insurance through their employers. (emphasis mine)
Purchasing health insurance with pre-tax dollars is a very cool thing, but the problem has been misidentified. We worry about pre-tax and post-tax dollars because there is an income tax. If we were to move to a consumption-based tax system such as the FairTax or Flat Tax, then everything is pre-tax. Since this is just the state of Massachusetts, just imagine the state income tax burden that made apparent the difference between pre-tax and post-tax dollars.
Similar Posts:
- Massachusetts Doctor Shortage
- Health Care “Public Plan” Questions Worth Repeating
- Rep. Crenshaw Seeks Tax-Free Spending Accounts for Disabled
