NCPA - National Center for Policy Analysis


September 20, 2007

Some of the details have changed, but at the heart of Sen. Hillary Clinton's new health-care proposal are the same flaws that sunk her first version.  They flow from her distrust of markets, from her distaste for profit-motivated private enterprise, and from her consequent faith that Washington knows best, says Mitt Romney, a former governor of Massachusetts and a candidate for the Republican presidential nomination.

What would HillaryCare Version 2.0 really do?

Raise taxes:

  • The new plan is slated to cost $110 billion a year and to pay for the new entitlement -- a tax hike.
  • That in turn will slow down the economy and make the cost of her system grow even higher.

Expand government insurance:

  • People who don't obtain insurance through their employer are invited to buy a government-run, Medicare-like plan or enroll in the Federal Employees Health Benefits Program (FEHBP).
  • As a result, more Americans will end up in government-run insurance.

Impose a national model on everyone:

  • The senator's plan is a one-size-fits-all approach.
  • It ignores significant differences between people and the needs of the 50 different states.

Significantly increase the role of the federal government at the expense of free markets:

  • Sen. Clinton proposes the creation of an entirely new government-run Medicare-like program for the uninsured.
  • Inevitably, lobbyists will go to town adding coverage mandates, setting rates and re-shaping plans to fit the wants of their clients.

Leave the mandate problem unsolved:

  • Before you can impose a mandate on employers or individuals to purchase insurance, you need to reform state health insurance markets.
  • Otherwise, policies can be so beefed-up with state mandated coverage and regulation that they are simply unaffordable.

Source: Mitt Romney, "Where HillaryCare Goes Wrong," Wall Street Journal, September 20, 2007.

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