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.

2 thoughts on “Letter to the Editor CT Oct 4th on Health

  1. Kevin:

    Interesting proposal: how do you avoid the rich-get-richer/poor-get-poorer tendency which this sort of approach (as with, say school vouchers) seems to encourage? Market outcomes in these cases can be efficient but not very community-positive.


  2. Michael,

    There are several ways and we only do it when things get too out of whack. However, remember the system keeps great records and we will know exactly how much money has been spent on each school. One way could be that if a parent pays extra for their child to go to a school then 50% of the money paid goes into the general pool and 50% to a specific school.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s