The American Spectator

Special Report

(Page 2 of 2)

health coverage. Everybody has to buy a no-frills $500 policy -- high deductibles and high co-payments but protection against catastrophic accident or illness. However, half the cost -- $250 -- comes as a tax credit , which essentially br> means the government pays for it. The insurance companies will come up with a decent policy. Because this is a federal program, the state legislatures can't intervene. /p>

After that, employers can add whatever additional coverage they want but without the tax exemption! That way we can accomplish one of the most noteworthy goals of tax reform -- eliminating the exemption for health benefits -- without reducing anybody's well-being. People without employee coverage can start Medical Savings Accounts -- which already have a requirement for buying basic coverage but without the tax credit.

All this would give us "national health insurance" without having the government take over the medical profession or the insurance industry. It might even substitute for Medicaid -- which state legislators would trade in a heartbeat for the thrill of writing insurance policies. Best of all, it would give a firm financial footing to those "Sam's Club" members who are the backbone of the new Republican majority.

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Trade, Health Care, Social Security, Medicaid, Books, Law