Where Health Care Reform Stands
By Arnold Kling
To save costs, Democrats mostly want to change the incentives for providers. Republicans mostly want to change the incentives for patients by shifting toward a model where insurance covers only catastrophic expenses and people pay for more routine care from tax-favored health savings accounts. In essence, the Republican view is that the best way to hold down long-term costs is to directly expose patients to more of them. Few Democrats accept that logic though and it has little influence on either chamber’s legislation.
Peter Orszag points proudly to the article, because it mostly interviews economists who heart the Senate health care bill. Folks like Jonathan Gruber, a key proponent of the Massachusetts debacle.
Reread the last sentence in the quote. When you read “that logic,” what is meant is the law of supply and demand. It’s a good thing that Congress doesn’t vote on whether to accept the logic of gravity.