NCPA - National Center for Policy Analysis


July 22, 2009

There is general agreement among Republicans and Democrats that we need health care reform to bring costs down.  This agreement can be the basis of a genuine, bipartisan reform, once the current over-reach by President Obama and House Speaker Pelosi fails.  Leaders of both parties can then come together behind health care reform that stresses seven principles, says Gov. Bobby Jindal (R-La.). 

Consumer choice guided by transparency:

  • We need a system where individuals choose an integrated plan that adopts the best disease-management practices, as opposed to fragmented care.
  • Pricing and outcomes data for all tests, treatments and procedures should be posted on the Internet.
  • Portable electronic health care records can reduce paperwork, duplication and errors, while also empowering consumers to seek the provider that best meets their needs.

Aligned consumer interests:

  • Consumers should be financially invested in better health decisions through health-savings accounts, lower premiums and reduced cost sharing.
  • If they seek care in cost-effective settings, comply with medical regimens, preventative care, and lifestyles that reduce the likelihood of chronic disease, they should share in the savings.

Medical lawsuit reform:

  • The practice of defensive medicine costs an estimated $100 billion-plus each year, according to the American Academy of Orthopaedic Surgeons, which used a study by economists Daniel P. Kessler and Mark B. McClellan.
  • No health reform is serious about reducing costs unless it reduces the costs of frivolous lawsuits.

Insurance reform:

  • Congress should establish simple guidelines to make policies more portable, with more coverage for pre-existing conditions.
  • Reinsurance, high-risk pools, and other mechanisms can reduce the dangers of adverse risk selection and the incentive to avoid covering the sick.
  • Individuals should also be able to keep insurance as they change jobs or states.

Pooling for small businesses, the self-employed and others:

  • All consumers should have equal opportunity to buy the lowest-cost, highest-quality insurance available. Individuals should benefit from the economies of scale currently available to those working for large employers.
  • They should be free to purchase their health coverage without tax penalty through their employer, church, union, etc.

Pay for performance, not activity:

  • Roughly 75 percent of health care spending is for the care of chronic conditions such as heart disease, cancer and diabetes -- and there is little coordination of this care.
  • We can save money and improve outcomes by using integrated networks of care with rigorous, transparent outcome measures emphasizing prevention and disease management.

Refundable tax credits:

  • Low-income working Americans without health insurance should get help in buying private coverage through a refundable tax credit.
  • This is preferable to building a separate, government-run health care plan.

Source: Bobby Jindal, "How to Make Health Care Bipartisan," Wall Street Journal, July 22, 2009.

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