1Q[3a]. Allow individuals to buy into the federal health plan?
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Biomedical subjects
Publications and source records attributed to R E Moffit.
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The deficiencies of the Medicare program are rooted in its defined-benefit structure and in its use of price controls. Medicare should be transformed into a defined cash contribution made to beneficiaries' private plans or to the traditional Medicare program. The Federal Employees Health Benefits Program (FEHBP) is essentially such a system and is a good model for Medicare reform. The FEHBP has been highly successful at holding down costs while offering a wide range of benefits and types of plans. Its features for consumer information and plan standards also would be useful in a reformed Medicare program.
What's wrong with the current healthcare system, and who's to blame? How can government-run healthcare be avoided? Dr Moffit, from The Heritage Foundation in Washington, DC, analyzes the problems of the current system, explains the pitfalls of proposed reforms, and offers a solution for saving the traditional private practice system.
The current health care system is not operating with a properly functioning market. Health care costs are hidden and often shifted, consumers and providers are insulated from the economic consequences of their decisions, and costs therefore go up dramatically. Instead of attacking both the structural deficiencies and the consequent inequities of the current employer based insurance system, the Clinton Plan simply expands them, and adds a heavier level of government regulation. The ultimate choice for the public is between a health care system based on consumer choice or a government controlled system. In pursuing a market based health care reform that enhances personal freedom and responsibility, two ethical principles are served. First, American consumers will be made aware of the true costs of health care services, and market forces will thus introduce incentives on the part of providers to control costs. Second, justice will be served; for not only will providers of medial services receive their due, but public policy makers can target relief more effectively to those who need it most.
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Last June, Washington's Heritage Foundation sponsored a symposium called ¿Restoring the Doctor-Patient Relationship: The Challenge of Third-Party Payment and Government Regulation.¿ This article, adapted from those proceedings, argues that tax fairness and choice are critical underpinnings of ethical medicine in the managed care era.