Policy Documents

A Common Sense Plan to Increase Access to Quality Health Care While Lowering Health Care Spending (part 2)

March 29, 1998

Many of the problems identified by the Clinton health care task force are undeniable.  It is not difficult to find hospital administrators willing to talk about waste and unnecessary equipment, or smal businessmen unable to find affordable health insurace for their employees, or even insurance company executives concerned about the tactics of their competitors and even their own companies.

But the solutions proposed by the Clinton Adminstration flow from a faulty analysis of these problems.  The Administration fails to see how existing regulations, subsidies, and tax policies distort the health care marketplace, and consequently it does not propose reforms in these areas.  The reforms the Administration does propose would exacerbate the problems of price-insensitive demand, high administrative costs, and cost-shifting to employers.