Breaking Down Healthcare Reform (Video by Libertarian Law Professor Richard Epstein)

[You may have to play around a bit to get the video to operate. Make sure you click "Full Program" or you might just get a 2-minute clip.]

This 30 minute video (including about 17 minutes of Q & A) from several months ago is Richard Epstein's analysis of the bill proposed by the House. But the main regulatory features of that bill are the same as the one just passed by the Senate. The gist of Epstein's lecture is that the total effect of these insurance regulations is to kill private health insurance, so we will eventually all end up in a single-payer government plan, even if a "public option" is not explicitly included in the Senate bill.

Epstein's alternative: Don't interfere with contractual relationships between individuals/employers and insurance companies. If we wish to help those without insurance, simply provide a voucher system for the poor to buy private insurance, on the model of present educational grants (e.g., Pell grants) which students can use at any post-secondary educational institution.

My commentary:

A pure libertarian solution would be deregulate the insurance markets, thereby creating cheaper insurance premiums affordable by practically all people, and otherwise do nothing.

If this alone isn't politically feasible - and if the drive for the government the help those without health insurance is too powerful - then we can directly subsidize health insurance for the poor, via some voucher system, and provide further direct subsidies for poor people with pre-existing conditions.

The present "solution" is for the federal government to worm it's way into every single private contract between individuals/employers and insurance companies and doctors, in order to provide indirect subsidies to the poor and to "control costs" (i.e., to ration care). This approach so clearly and so obviously leads to the collapse of the private insurance market, and to government control of all of our personal medical decisions, that I personally do not think that it is motivated by a desire to help the poor (except, perhaps, among a minority of intellectually challenged people.) It is, rather, motivated by envy; by "egalitarianism"; by some kind of twisted hatred manifesting itself in the desire for totalitarian control of other human beings.

“It is, rather, motivated by envy; by “egalitarianism”; by some kind of twisted hatred manifesting itself in the desire for totalitarian control of other human beings. “

Nailed it.

“Return to the market for accurate pricing” This is the only rational way to reduce costs.
I also like his idea of healthy individuals simply opting out as has happened in Mass. This can go on as long as the mandates are not in force (2014). This could be a good economic decision for many and way of civil disobedience.
It is also interesting that health care stocks went up recently with the failure of the public option in the Senate. I agree with Epstein that the hyper-regulated insurance companies will eventually become valueless as profits are disallowed and unprofitable companies are propped up until they get universal health care. Wellpoint, UHC, Humana will be just like GM, Chrysler.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.