The current political debate on health revolves around whether the Federal Government, The States, or Local Boards are to be in charge of spending taxes on hospitals. Another solution is to let each citizen take charge of spending part of the tax. Here is how it could work.
Each year anyone who wishes to participate is given an amount of medical money to spend on approved medical services. They may decide not spend their medical money and save it for later years. When they spend their medical money they contribute a percentage of their own money depending on the service.
What will happen? Medical services – including hospitals – will run like normal businesses. They will be able to compete for customers and they will keep the funds paid for with medical money. People will be able to choose between going to a doctor or a nurse or a hospital. New cheaper forms of medical services will arise naturally. People will tend to accumulate medical money – not spend it – because they can use it in following years.
Chronic illnesses, accidents, emergencies will be covered by the existing safety net. Medical facilities including hospitals will become more accountable to their patients. Funds will go to areas of need because the funds follow the patients and not the political whims of the latest election campaign. There will be no change to the medical infrastructure only to how taxes are disbursed. The system is easily adjusted by changing the rules around medical money. It can be introduced incrementally, cheaply and voluntarily and can be done by the Federal government without requiring State agreement. As more join so it removes the need for the State Federal bunfight over health funding.