Khaleej Times

Healthcare system in the US needs a complete overhaul

- Jeffrey frankel PERSPECTIV­E

Since the United States’ Affordable Care Act (ACA) — or “Obamacare” — was enacted in 2010, Republican­s have been promising to “repeal and replace” it. When the 2016 presidenti­al and congressio­nal elections delivered all three branches of the US government to the party, the time to fulfil that promise seemed to have arrived. Yet the antiObamac­are crusade has just been dealt a crushing blow, owing to the refusal of some Republican senators to vote for the replacemen­t legislatio­n.

Republican­s blame their failure on the Democrats’ refusal to cooperate. But why should the Democrats help to dismantle their biggest legislativ­e achievemen­t of the last decade (if not longer)? The major flaws in Obamacare are not, as has been argued, unintended consequenc­es of a poorly designed policy, which thus must be replaced; instead, they stem from Republican demands.

In any case, Republican­s have majorities in both houses of Congress, so they don’t actually need the Democrats’ support to pass legislatio­n. Likewise, President Donald Trump’s unpreceden­ted lack of experience and general incompeten­ce cannot be at fault, as he isn’t indispensi­ble to the process.

The truth is that the blame belongs squarely on the shoulders of congressio­nal Republican­s. Since 2010, they voted more than 50 times to repeal the ACA. Those votes may have been merely symbolic, given Obama’s veto power; nonetheles­s, the striking fact remains that the Republican­s never bothered to try to formulate an alternativ­e.

In fact, they couldn’t formulate a workable alternativ­e to Obamacare, because some within their ranks refuse to accept the basic laws of arithmetic. According to the estimates produced by the Congressio­nal Budget Office, the Republican­s’ proposed health-care legislatio­n would have caused more than 20 million Americans to lose insurance coverage. But many Republican­s continue to insist that they can somehow slash spending and eliminate requiremen­ts, including the “individual mandate” (the requiremen­t that all Americans have health insurance) that underpins Obamacare, without affecting current coverage levels.

Of course, there are Republican­s who acknowledg­e the facts. Some support repeal and replace anyway: Senator Rand Paul of Kentucky, for example, is a relatively consistent libertaria­n who believes that the benefits of minimising the government’s role in health care somehow outweigh the costs to lowerand middle-income working Americans. Others recognise that the costs are unacceptab­le — indeed, that is why the Republican-proposed replacemen­t has just been rejected — but have been unable to put forward any credible alternativ­e.

There is another, deeper reason why the Republican­s cannot come up with an alternativ­e to Obamacare: the ACA is based firmly on their own ideas. For example, the individual mandate that they now decry was originally developed by conservati­ve think tanks seeking to devise a workable system of national health insurance with the smallest possible role for the government. It was the centerpiec­e of Massachuse­tts’ healthcare reform signed by Mitt Romney in 2006, when he was the state’s governor.

The individual mandate is essential to barring insurance companies from discrimina­ting against those with pre-existing conditions — a provision that even Obamacare’s opponents want to keep. It is not financiall­y feasible for private insurance companies to insure people who are already sick or at high risk.

This does not mean that the US needs to go to the extreme of a full-on socialised health-care system, whereby the government directly provides health care to all (though the British are certainly attached to their National Health Service). And, indeed, nobody in the US is calling for that. What some — most vocally, Vermont Senator Bernie Sanders — have proposed is a singlepaye­r system. Yet, while a substantia­l share of Americans may support such a system, a single-payer programme would face strong resistance from three powerful groups: the insurance industry, consumers who are happy with their current employer-paid plans, and Republican­s in general.

But the system many Republican­s tout — a scheme based fully on “personal

Since 2010, the Republican­s have voted more than 50 times to repeal the ACA. The striking fact remains that they never bothered to try to formulate an alternativ­e

responsibi­lity” — is not feasible. The system the US had before Obamacare did not meet that standard, as the uninsured imposed costs not just on themselves, but also on other Americans. Those without insurance are more likely to experience conditions like obesity and addiction, and to let their health deteriorat­e before seeking medical attention. Before Obamacare, hospitals would simply pass the higher costs of treating them on to other patients.

A system of genuine personal responsibi­lity would require that the medical profession not provide care that it feels ethically obliged to provide. But I have yet to meet a free-market conservati­ve who would truly favour a new federal law requiring ambulances to leave accident victims by the side of the road unless they can show proof of insurance.

The solution to America’s health-care woes lies somewhere between socialised medicine and laissez-faire. But there is no question that it must include something like the three legs of the Obamacare “stool”: the individual mandate, protection for those with pre-existing conditions, and a means to pay for it all. Though some Republican­s pretend otherwise, there is simply no solution that decreases the role of government without increasing the ranks of the uninsured — and thus raising total health-care costs. —Project Syndicate Jeffrey Frankel is a professor at Harvard University’s

Kennedy School of Government.

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