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Making health care more competitive, and cheaper

Jeff Jacoby:

Prices are advertised everywhere. From newspapers to billboards to websites, we are forever being told how much things cost. Want to buy contact lenses? A cruise to Alaska? A pedicure? The price of almost any product or service is readily available, and vendors vie for business by keeping their prices competitive.

But not when it comes to health care. In this second part of his look at health care, the first part of which I noted on Thursday, Jacoby argues that by de-linking health care from employment, through tax reform, prices will be driven down. The tax reform in question is to make health care coverage one purchases oneself tax deductible; it currently is not. Here's the kicker: Based on RAND Corporation research, they estimate that making medical expenses deductible would reduce health care spending by $40 billion -- all without forcing a single benefit cut on anyone. [Emphasis added. --R]