Why we need market-based healthcare reform: Part 1 of 2

Heartland Institute
Posted: November 11th, 2007 by Steve Trinward
Author: Health Policy Consensus Group

“[This article describes the Consensus Group’s vision for consumer-driven healthcare reform, based upon tax reform.] “The United States does not have a properly functioning market for healthcare, and the financing system needs to be reformed. The market is distorted by a tax policy that is mistargeted, miscalibrated, and open-ended. This tax policy provides generous benefits to those who have higher incomes and receive health insurance through the workplace. Yet it offers little or no assistance to those at the lower end of the income scale. Particularly at a disadvantage in the current system are those who fall through the cracks between this tax subsidy and Medicaid. Reforming the tax treatment of health insurance is essential to creating a more efficient and equitable market for medical services and health insurance in the United States. Correcting the tax distortion would lower the costs of health insurance coverage in both the public and private sectors and thereby allow broader access to quality healthcare. ” [editor’s note: A piece from 6+ years ago, outlining where we are still trying to go today. Part 2 will appear here next week.] (03/01/2001)

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