In every field of endeavor, change is brought about by entrepreneurs. These are the creators. The innovators. They rarely stop thinking. The only question is: What are they thinking about?
In a normal market, the entrepreneurs wake up every morning and ask themselves: How can I make costs lower, quality higher, and access to my product better today?
But in a bureaucratic system where revenues are determined not by customer satisfaction, but by complicated payment formulas they tend to wake up and ask: How can I get more money out of the payment formulas today?
In the Medicare Advantage program you can find both types of entrepreneurship.
Imagine that UnitedHealth care or Humana or Cigna discovered away to cut health care costs in half with no reduction in quality or in access to care. The stock price of the company that made this discovery would go through the roof. Right? Not quite. Under rules imposed by the Obama administration, the company would be forced to give virtually all of its newfound profit back to Medicare.
|John C. Goodman is a Senior Fellow at the Independent Institute, President of the Goodman Institute for Public Policy Research, and author of the widely acclaimed Independent books, A Better Choice: Healthcare Solutions for America, and the award-winning, Priceless: Curing the Healthcare Crisis. The Wall Street Journal and the National Journal, among other media, have called him the Father of Health Savings Accounts.|
Obamacare remains highly controversial and faces ongoing legal and political challenges. Polls show that by a large margin Americans remain opposed to the healthcare law and seek to repeal and replace it. However, the question is: Replace it with what?