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Archive for September 21st, 2007

It took a long time coming but it is here at last. Hillary Clinton finally unveiled her healthcare plan this week.

The key feature of her plan is what she calls individual mandate. It requires that every American buy health insurance. A similar law already exists in the state of Massachusetts and is supported by the governors of several other states, including California.

However her clever choice of phrase does not obscure the fact that this is essentially a plan for individual coercion. Forcing an individual to pay money for a service which deals with the well-being of his own body -something that is no one’s concern except his- is wrong, in my opinion.

Most Americans agree that the health-care system needs an overhaul. Hillary Clinton, whose political career has been a mix of leftist righteousness and clever opportunism (displayed for instance by her history of voting on Iraq and her defence of it) realises that healthcare is the issue that will decide this election. Unfortunately she fails to realise – or worse, perhaps realises yet chooses to ignore for political expediency – that the American system is broken primarily because government interference and regulations over the last fifty years have driven insurance premiums through the roof. Plans such as Clinton’s or Edward’s are further steps in the wrong direction. They push health-care towards a heavy-handed bureaucratic system with more controls, apart from being an assault on personal liberty.

A much more reasonable and effective first step would be to distribute vouchers to families that they can use only for insurance, while simultaneously eliminating the regulations on private insurers and retaining one government-owned catastrophic health insurance program. The next step would be to formulate policy that would encourage – for the purpose of basic health needs – a paradigm shift away from insurance. On that note, read Milton Friedman’s excellent article on this subject.

Sadly, the most effective solutions are often not the ones with most political pizzazz.

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