Those who worry about a growing role for government in health care reform have reason for concern: the government already plays a surprisingly large role in our health care system. Like Thomas Jefferson, the father of the Democratic Party, they may feel that: ‘Were we directed from Washington when to sow and when to reap, we shall soon want bread.’

By starting with the tax system, Congress can ultimately achieve true reform.
Mainstream economists generally agree that current U.S. tax policy for health insurance is fundamentally irrational, regressive, and ultimately destructive. Fixing this system should be one of Congress’s top priorities when it comes to health reform. Sadly, the current Congressional health-reform proposals would leave the worst feature of the current system in place and make a bad situation worse.

The fundamental problem with health care reform is the absence of realistic plans to reduce unit costs. Without cost controls , tens of millions of newly-insured people will further cripple U.S. global competitiveness, which is already grievously injured because the U.S. spends roughly 70 percent more on health care, as a percentage of GDP, than other developed nations, yet cannot point to commensurate 70 percent increases in value.

Can you get what you need in a government-run health-insurance market?
Virtually all current health-care-reform plans feature a monopoly health-insurance store, operated by federal or state governments, for those who lack employer- or government-sponsored insurance and want to qualify for government subsidies. Advocates claim these monopoly markets will control costs through their purchasing power and enhance price competition by simplifying comparison shopping. When insurers are forced to compete on price, they will prod health-service providers for increased efficiency.

Of course.
After all, providing universal coverage, at, say, an average cost of $5,000 per person, will cost at most $250 billion annually and likely less because some of the uninsured can afford to pay part of the cost of their health insurance—a quarter earn more than $40,000- and many are lower-cost young people. Two hundred and fifty billion dollars is a large sum, for sure, but not overwhelming relative to the trillions of expenditures in the stimulus bills.

With little fanfare, Congressional leaders may be near to agreeing on the most sweeping expansion of government in a generation – the de-facto takeover of the health insurance market by the government. Congressional Democrats are already icing the champagne. When the President’s “Medicare for all” plan is coupled with the budget, which contains a “down payment” of $634 billion over the next decade for health care, government-run health care may be inevitable.

The time for universal health insurance coverage has come. Everybody seems to know that — except for the Republicans, all too many of whom cling to traditional denunciations of universal coverage as socialism. Senate Finance Committee Chairman Max Baucus has been holding talks with Republican lawmakers over the past week, and all signs point to opposition from the GOP.

Last week’s health-care summit made clear that, as far as the president is concerned, the question is not whether the U.S. will enact universal coverage but how. 
 
When Obama gets it enacted, most historians will revere him as the president who finally dragged barbaric Americans into the modern world. But some may note that the Obama system worsened results for the sick and killed the promising genomic industry, in which the U.S. currently enjoys a world-wide lead. These are the inevitable results of the Obama administration’s push for a statist health-insurance …