Health Care Moving in the "Right" Direction

Ryan's plan appears worth studying.

Summary, grabbed from Heritage:

1. Changing the Tax Treatment of Health Coverage
Current tax treatment of health insurance gives preference to employer-based coverage by making benefits tax free to the employee and the employer alike. Obviously, this tax policy only benefits those who receive coverage through their employer. It benefits those who also have the biggest benefit packages, usually, but not always, the wealthy. Ryan’s “Roadmap”replaces this inequitable system through creating a system of refundable tax credits of $2,300 for individuals and $5,700 for families for the purchase of health coverage. As Heritage experts have pointed out this will transform the market to respond to patients’ needs, allow portability of insurance between jobs, and further the goal of universal access.

Replacing the tax exclusion with a health care tax credit would not only help the middle class buy insurance and extend coverage to the uninsured; it would also set in place powerful incentives to reduce the rapid growth in health care expenditures…individuals and families will have the ability to choose the health plan they want, own it, and take it with them from job to job. This tax credit would also have the added benefit of allowing individuals and families to decide how much of their compensation comes to them in the form of health insurance

2. Promoting State- Based Reform and Exchanges
The Ryan “Roadmap” would create a Federal-State partnership to help states that wanted to do so create State Health Insurance Exchanges, featuring high-risk pools combined with guaranteed access to care with affordable premiums. A state health insurance exchange can be designed many different ways. The key question is what is the objective of such an exchange. For consumers who want to own and control their health insurance, and take it with them from job to job, a properly designed state exchange, as Heritage’s Robert Moffit argues, can make it easy for employees , especially those in small businesses to compare and buy affordable health plans. It can unleash the free market forces of choice and competition. An exchange designed to restrict health options, as is now being promoted by the Left, is just another regulatory roadblock to personal freedom.

3. Allow Interstate Purchasing of Health Coverage
Congressman Ryan’s proposal would also allow individuals to use their refundable tax credits towards the purchase of health insurance policies in any state. As Moffit explains, interstate competition would lead to broader and more intense competition, greater personal choice and more affordable coverage, and would secure value for consumers’ dollars.

The nonpartisan Congressional Budget Office evaluated Congressman Ryan’s Roadmap favorably, finding that “[The health insurance tax credit] could impose significant downward pressure on… the growth of overall spending on health care.” The Roadmap would also reform Medicare, putting it on more solid fiscal ground and molding it into a more consumer-driven system.