Market Failure in Health Care?
The Michigan House of Representatives is likely to decide soon if they want to implement Obamacare by setting up a state health care exchange. While there are many practical questions (is expanding Medicaid really the solution, future state tax burden, etc.), the rhetoric is focused on the question:
Who will provide better health care, the free market or the government?
Critics on both sides, claim the other will, or already has, failed. The interesting similarity between these two approaches is they are both likely to produce failures. Coca-Cola famously released “New Coke”, and it was considered a failure to consumers despite their CEOs initial insistence it was a success. The US Congress funded a Bridge to Nowhere. The important question to ask is:
Which system is more likely to find solutions to failed outcomes?
Coca-Cola listened to their customers, quit producing New Coke, and went back to their old formula. The US Congress continues to provide funding for the Bridge to Nowhere. As we can not live in nirvana, it would be wise to adopt a system which is going to more quickly address its failures, and move us towards better outcomes.
Free markets have proven time and time again to be the better system (Note: Not a perfect system.). Profits and losses send signals to business. Walmart did not need months of political debate, countless pages of regulations, and court cases to lower health care costs for Americans. It introduced $4 prescriptions and has saved Americans billions of dollars.
Contact your House Representative today and tell them you oppose the Michigan Health Care Exchange.
By Lewis Butler