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IPFS News Link • Healthcare

Why the "Freedom Caucus" Is Right to Be Skeptical of Ryancare:

• fee.org by Jeffrey A Tucker

ou want to know why the "freedom caucus" has balked at passing the Trump-backed Ryancare health care proposal?

Because the package does not address the core problem of the existing system. They are leaning – correctly – on a brilliant insight from F.A. Hayek. 

Let's think this through.

What was the most fundamental problem with Obamacare? It attempted to set up an artificial market that lacked the most salient feature of markets: genuine competition. Real competition. I don't mean teams struggling for control. I mean an institutional setting in which producers can innovate. They face free entry and exit. Their well-being depends on serving the consumer.

Obamacare has flopped because it disabled what remained of the competitive system with defined benefits packages, mandates that everyone be covered, requirements that everyone must purchase, and geographic limits on service provision. All these together took health care out of the realm of markets and made it a form of central planning.


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