Recently Tom Campbell wrote up a response about how to solve the health care issue in the United States for an alternative to the proposals the Democratic Party and President Obama have proposed. I am glad that Tom is actually thinking up solutions on how to solve the pressing issues that we face in California instead of telling people only what we oppose.
Unfortunately Tom needs to go back on the drawing board because his proposal has some externalities that could actually hurt the people that it is intended to benefit. Relying on the private insurance industry is not a good idea because as what Calitics stated, if we remove the anti-trust laws to allow for inter-state insurance policies then insurance companies will set up shop in the states that have the weakest regulations and consumer protections. It sounds good for the opportunity to drive down insurance prices by allowing for more competition, but without regulation we will have bare bones policies that do not cover anything.
Insurance is an industry that is measured based on risk and will insurance companies bid on high risk clients in an open bidding process? If no one bids in a particular region according to Tom Campbell’s plan, the status quo would still be maintained and nothing would happen for the people in a given region to those who are involuntary uninsured for example with pre-existing conditions or people under a certain income level.
Tom’s proposal needs revisions so it could pass scrutiny with congress and the general public. If Tom wants a waiver in how to spend Medi-Cal and SCHIP monies, Tom will need to make sure consumers are protected and the taxpayer’s money is spent efficiently to provide the services people depend on. The problem is private insurance has a bad reputation and with the public option the grass is not greener on the other side. Tom should be applauded for trying to start dialogue on the health care issue, but we need to keep on thinking further for the best solution.