Tag: voucher

Yes, Mr. President, a Free Market Can Fix Health Care

At his White House forum on health reform back in March, President Barack Obama offered:

If there is a way of getting this done where we’re driving down costs and people are getting health insurance at an affordable rate, and have choice of doctor, have flexibility in terms of their plans, and we could do that entirely through the market, I’d be happy to do it that way.

In a new Cato study titled, “Yes, Mr. President, a Free Market Can Fix Health Care,” I take up the president’s challenge and explain that markets are indeed the only way to achieve those goals.  I also explain how Congress can remove the impediments that currently prevent markets from doing so:

  1. Give Medicare enrollees a voucher (adjusted for their means and health risk) and let them purchase any health plan on the market,
  2. Reform the tax treatment of health care with “large” health savings accounts, which would give workers a $9.7 trillion tax cut (without increasing the deficit) and free them to purchase secure coverage that meets their needs,
  3. Free consumers and employers to purchase health insurance across state lines (i.e., licensed by other states), which could cover up to one third of the uninsured,
  4. Make state-issued clinician licenses portable, which would increase access to care and competition among health plans, and
  5. Block-grant Medicaid and the State Children’s Health Insurance Program, just as Congress did with welfare.

Unlike the president’s health care proposals (which, as Victor Fuchs explains, would merely shift costs), these reforms would reduce costs, expand coverage, and improve health care quality – without new taxes, government subsidies, or deficit spending.

Would a free market be nirvana?  Of course not.  But fewer Americans would fall through the cracks than under the status quo or the government takeover advancing through Congress.

There is a better way.

(Cross-posted at Politico’s Health Care Arena.)

Obama’s Health Care Speech in Plain English

health care addressHell of a speech last night, eh?  Here are a few of my favorite gems.

Under this plan, it will be against the law for insurance companies to deny you coverage because of a pre-existing condition.

Translation: I, Barack Obama, ignoring thousands of years of failed price-control schemes, will impose price controls on health insurance. I will force insurers to sell a $50k policies for $10k. What could go wrong?

We were losing an average of 700,000 jobs per month.

True. And your employer mandate would kill hundreds of thousands of low-wage jobs that would never come back.

They will no longer be able to place some arbitrary cap on the amount of coverage you can receive in a given year or a lifetime.   We will place a limit on how much you can be charged for out-of-pocket expenses…. And insurance companies will be required to cover, with no extra charge, routine checkups and preventive care.

Translation: Boy! Are we going to force you to buy a lot of coverage!

I will make sure that no government bureaucrat or insurance company bureaucrat gets between you and the care that you need.

…except for the bureaucrats I proposed to put between you and your doctor.

Some… supported a budget that would have essentially turned Medicare into a privatized voucher program. That will never happen on my watch. I will protect Medicare.

Translation: I will never let seniors control their own health care dollars. I will never give up Washington’s control over your health care decisions.  Mmmmuuuuhahahahahaha!

…there are too many Americans counting on us to succeed.

Translation: There are too many lobbyists counting on me to succeed: drug-industry lobbyists, health-insurance lobbyists,  physician-cartel lobbyists, large-employer lobbyists, hospital lobbyists….

It’s a plan that asks everyone to take responsibility for meeting this challenge – not just government and insurance companies, but employers and individuals.

Translation: I’m going to tax the hell out of you, but I don’t want you to notice how much I’m going to tax you. So I’m going to tax employers and insurance companies, and they’re going to pass the taxes on to you. Most of the taxes won’t even show up in the government’s budget. It’s all very clever. No, seriously – just ask my economic advisor Larry Summers.

It’s a plan that incorporates ideas from Senators and Congressmen; from Democrats and Republicans – and yes, from some of my opponents in both the primary and general election.

Translation: I may have savaged your ideas in the past, called them irresponsible…risky…dangerous…whatever. But that wasn’t about principle; I just wanted to become president. Now that I’m president, I need a win. So you’ll help me, won’t you? Hey, where’s Hillary?

I Would Rather You Just Said “Thank You, Private Schools,” and Went on Your Way…

Some well-known bloggers are being terrible bullies, beating up on private schools.

Felix Salmon kicks things off by hoping the government tightens the definition of a “charitable” organization and begins taxing private schools who don’t “do a bit more to earn it.” Matt Yglesias agrees that private schools are mooching deadbeats and ups the ante, calling them actively harmful as well. Finally, Conor Clarke at The Atlantic agrees, but makes the other two look like panty-waists by proposing the government radically narrow what is considered a charity in the first place.

Yglesias even has the temerity to indict private schools for the failure of NYC public schools:

And as best one can tell, their main impact on the common weal is negative, drawing parents with resources and social capital out of the public school system and contributing to its neglect. You’d have to believe that New York City’s public schools would be both better funded and free of this kind of nonsense if a larger portion of the city’s elite were sending their kids to them.

Really? Would we have to believe what Yglesias says? No, it’s not “the best one can tell.” According to the evidence, Yglesias’ breezy, offhand accusation is demonstrably wrong. Increased competition from private schools actually improves public school performance.

And the more kids who leave public to go private, the more money the schools have for the kids who remain.

What ingrates. They complain about the lost tax revenue while dismissing out of hand the billions of dollars that parents and donors spend every year to educate children outside the government system. They dismiss the fact that these parents and donors are saving taxpayers in the neighborhood of $60 Billion a year based on current-dollar public school spending and the number of kids in private schools.

Finally, if this is all about rich people getting a free ride, why aren’t these guys screaming about means-testing public schools? Why shouldn’t we charge rich parents tuition to attend public schools? If a charitable deduction for private schools is so bad, why isn’t a free public education even worse?

DC Residents Want Private School Choice

As Adam Schaeffer mentions below, a new poll commissioned by the Friedman Foundation and others reports that the vast majority of DC residents are in favor of the DC opportunity scholarships voucher program and are critical of the decision of congressional Democrats, President Obama, and ed. sec. Arne Duncan to phase out the program.

Many on the city council have already voiced their support for the program as well.

This begs a question: Why doesn’t the DC government just create its own private school choice program and save itself a boatload of money in the process?

DC spends about $28,000 per pupil on k-12 education right now. The federal vouchers, at an average of $6,600 each, are rather more cost effective, in addition to producing much better academic achievement after students have been in the program for a few years. 

So most folks in DC want it. It would save the city massive amounts of money. And it would do great things for kids.

What are the mayor and the city council waiting for?

It’s Dangerous For Pols to be on the Wrong Side of Overwhelming Support

Any City Council members who aren’t vocally supporting the DC voucher program need to take a good long look at these numbers:

Nearly 75 percent of District residents support the city’s federally funded school voucher program, according to a rigorous, independent poll released today. Widespread support for the program crosses party lines—with 74 percent of Democrats, 77 percent of Republicans and 70 percent of Independents backing the program—and extends across each of the District’s eight wards…

Two previous polls have demonstrated local support for the program; in 2007, a Greater Washington Urban League poll demonstrated almost 70 percent support for the federal funding creating the D.C. Opportunity Scholarship Program. A 2008 poll by the national nonprofit Education Reform Now demonstrated equally strong support for the voucher initiative, with 63 percent of D.C. residents supporting school vouchers in general and 77 percent voicing supporting for parental choice in education.

More Undeserved Praise for Obama’s NAACP Speech

Mike Petrilli of the Fordham Foundation is an affable and intelligent man. But he has gone round the rocker in regard to President Obama’s NAACP speech last week.

His review reads like promotional excerpts for a blockbuster movie; Don’t miss what critics are calling a can’t-miss experience … “transcendent” … “inspirational” … “honest, direct, bold.”

Why such superlatives? Because Obama is an “African-American president, speaking to the NAACP, and arguing for reform in our schools and responsibility in our homes and community.” Wow. Reform and responsibility?

Of course, as I point out here, the President OPPOSES the most direct and effective means of reforming education and empowering parents; school choice. And he supports expanding federal control of education from pre-k to college. Our President is working against reform and responsibility in education.

Our President has the nerve to lecture parents on the importance of getting involved as he supports ripping vouchers out of the hands of children in DC and elsewhere. He and his Congressional colleagues have effectively told thousands of District parents, who desperately want to direct their children to a better future, to shut up and sit down.

There is absolutely nothing to celebrate about a President who mouths nice platitudes while doing all he can to undermine the principles that underlie those sentiments.

I Have to Admit, I Was Wrong

I’ve just discovered that my calculation of DC education spending per pupil was wrong, and I have to publish a correction.

I wrote back in March that total DC k-12 spending, excluding charter schools, was $1,291,815,886 during the 2008-09 school year. That still appears to be correct. But to get the per-pupil number I divided total spending by the then-official enrollment count: 48,646. It now turns out that that number was rubbish. PRI’s Vicki Murray just pointed me to this recent DCPS press release that identifies a new audited enrollment number for the same school year:  44,681 students.

If that number excludes the 2,400 special education students that the District has placed in private schools, then DC’s correct total per pupil spending is $27,400.

If the new audited enrollment number does include the students placed in private schools, then DC’s correct total per pupil spending is $28,900.

Hmm. Let me think. What was that average tuition figure at the private schools serving DC voucher students….? Oh yes:  $6,600, according to the federal Department of Education.

In case you don’t know, that’s the program in which, after three years, voucher-receiving kids are reading two grade levels ahead of their public school peers — also according to the Dep’t. of Education (see the linked study, above).

It is also the program that President Obama has doomed to die, because of the, uh…, because, um…, why did he do that again?!?!