Free Markets in Health Care

Free Markets in Health Care

Voters want government out of what should be free-markets.

Why does the Heritage Foundation, alone among conservative think tanks, endorse health insurance exchanges? Primarily because exchanges are a way for individuals purchasing their own insurance to avoid unfavorable federal tax treatment.Additional layers of governmental oversight will inevitably lessen market competition and consumer choice – despite good intentions and careful "crafting."

Robert E. Moffit (Heritage Foundation) testified before The House Subcommittee on Health Committee on Energy and Commerce:

* The overwhelming majority of uninsured individuals transition in and out of coverage, often with a change of employment.

* The policy problem is how to make insurance stick to the person, not the job.

* A person buying a policy on his own is forced to use after tax dollars, adding between 40-50% for the same level of benefits if obtained through an employer.

* "... Governor Mitt Romney invited me and my colleagues at Heritage to provide advice and assistance on the creation of a health insurance exchange."

* "... we helped design an entirely new market that would get around the current limitations of the federal tax code, which undercuts both the choice and portability of health insurance coverage, particularly for employees in small businesses."

* "The Massachusetts legislature renamed it "the Connector" and significantly modified its authority beyond what we had originally proposed."

Robert E. Moffit, Ph.D. Heritage Foundation, Director, Center for Health Policy Studies
"Policies for Congress To Expand Health Coverage Through State Reforms"
Testimony before The Subcommittee on Health Committee on Energy and Commerce United States House of Representatives, April 25, 2007.