Parker Griffith radio interview

U.S. Representative Parker Griffith, whom I've written about before in this space, was recently on WBHP.

I like his positions on the stimulus, bailouts, cap & tax, and healthcare: all no!

I was happy to hear him speak out against the AMA, which many doctors can't do out of fear of losing their licenses. The AMA cartel is a big source of what's wrong with healthcare in America.

He was also correct that the so-called reform proposals are really "overreach" and a "power grab," nothing to do with improving health care. In a 1961 speech, Ronald Reagan warned, "One of the traditional methods of imposing statism or socialism on a people has been by way of medicine."

So far so good. But then he got to his solution.

I understand the poor guy was sleep deprived, but he fell back into the usual feel-good blah-blah-blah about making health insurance companies "play by the same rules." In real life, this will mean more federal oversight, higher prices, less competition, and therefore less consumer satisfaction.

As a physician, he ought to understand the folly of treating the symptom. The real problem is adults still believe in Santa Claus but use the code name "health insurance." Imagine if State Farm were expected to pony up every time you took your car in for an oil change or other routine maintenance. Health insurance is no such thing: it's really a sort of pre-paid entitlement program, but entirely perverse. For example, legislation requires everyone to pay the same premium in employer-sponsored group insurance. This means healthy people are overcharged, and the couch potato gets a free ride. The system subsidizes and therefore encourages poor health!

In the market, sellers compete against sellers, but buyers also compete against buyers. Throwing deep-pocketed "insurers" into the mix inevitably drives prices beyond affordable levels, especially given the way "insurance" destroys patient price-sensitivity.

I like Peter Schiff's proposal much better. Health "insurers" exist only because of aberration in the tax code. This special tax treatment is why open-market consumers can't purchase their products for reasonable prices. Schiff proposes ending this subsidy but simultaneously raising the personal exemption so as to make the change a wash for taxpayers. The true costs of health "insurance" would then be laid bare. The much cheaper option of major-medical policies would become more attractive. Insurers would have to compete with each other on price, terms, service, and so on. We'd no longer be chained to our employer-sponsored plans.

This would create enormous downward pressure on healthcare prices because people would pay for oil changes.. err, routine doctor visits out of pocket from money that they gasp saved in anticipation of such expenses. Of course when the out-of-pocket limit hits, their bona fide insurance would kick in and cover the rest. Economic arbitrage doing its work means that such a system would also benefit those who opt not to purchase insurance policies.

The jingoistic breast-beating about money versus commitment was poor cover for the fact that Uncle Sam is drowning in debt and flat-out broke. The feds can barely afford to pay their bills now. How will they afford a new program that will dwarf Social Security and Medicare?