Conservative Principles of Health Care Reform
Posted by benarmstrong on 6/23/2009 7:07:54 PM.
This policy was first proposed by Michael Enzi, The Heritage Foundation.
Level of Government: National
Status: Proposed

Abstract
Background:
In a lecture to the Heritage Foundation, a conservative think-tank, Senator Mike Enzi set a broad conservative agenda for healthcare reform.  He recognizes that the increasing costs and sinking quality of healthcare necessitate 'comprehensive reform.'  While Enzi's principles are not revolutionary, they succinctly capture the Republican position in the upcoming debate over the future of US healthcare.

Purpose:
The proposal seeks to increase the accessibility of healthcare and control costs without sacrificing quality.  The goal of the idea is not to provide a detailed reform package for healthcare (for Enzi realizes that the conservatives are not in a position to activate one), but to clarify the GOP's position on upcoming negotiations.

Plans:
The Enzi plan would focus on facilitating a robust private insurance market.  Private insurers would be barred from selecting patients based on their prospective risk or refusing coverage based on pre-existing conditions. The plan would provide subsidies to low-income Americans so that they can access private health insurance.  The breadth and conditions of such a subsidy program was not specified.
 
The plan claims that it would increase government oversight of the insurance market to control costs to the consumer, but it does not specify what that oversight would entail.  Enzi further argues for more transparency in the healthcare industry so that insurers understand the options before them and the bailiwick of their selected coverage.  The speech does not provide details of a prospective transparency initiative.

Resources:
Since the plan does not offer specific reforms, we cannot estimate its cost.  The primary cost of implementing the Enzi proposal would be subsidies for low-income Americans who currently cannot afford healthcare.  Since the proposed reforms are otherwise relatively modest, the new resources needed for implementation would be relatively few.


Policy Details
The plan outlines no clear funding mechanism.  However, it makes clear that new taxes on charitable giving should not be used to fund the plan, nor should new taxes on energy.  Instead, parties should discuss eliminating the tax exemption for employer contributions to healthcare payments.
Though the plan does not advocate for a mandate subjecting the voluntarily uninsured to a fine, it does argue for expanded access.  To ensure expanded access, Enzi contends that insurers should be barred from discrimination based on pre-existing conditions.
Enzi's principles stress that individuals should be able to select from competing private insurance plans.  While Congress should be sure to lightly regulate the private insurance market so that insurance companies do not cherry-pick the least risky patients, Enzi maintains that competition among private companies on price and quality will make for the most effective healthcare system.
The Enzi proposal would provide subsidies to low-income Americans so that they can access health insurance.  The plan does not favor expanding Medicaid, labeling such an expansion 'unsustainable.' 

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