Bad Medicine

Interesting take:

Almost daily we're bombarded with apocalyptic warnings about the 47 million Americans who have no health insurance. Senator Hillary Clinton wants to require everyone to have it, to require big companies to pay for it, and have government buy policies for the poor.

That is a move in the wrong direction.

America's health-care problem is not that some people lack insurance, it is that 250 million Americans do have it.

You have to understand something right from the start. We Americans got hooked on health insurance because the government did the insurance companies a favor during World War II. Wartime wage controls prohibited cash raises, so employers started giving noncash benefits like health insurance to attract workers. The tax code helped this along by treating employer-based health insurance more favorably than coverage you buy yourself. And state governments have made things worse by mandating coverage many people would never buy for themselves.

Competition also pushed companies to offer ever-more attractive policies, such as first-dollar coverage for routine ailments like ear infections and colds, and coverage for things that are not even illnesses, like pregnancy. We came to expect insurance to cover everything. Read More.