Magic of the marketplace to the sick: Go die

lambert's picture

Krugman on Voodoo Health Economics:

Elizabeth Edwards has cancer. John McCain has had cancer in the past. Last weekend, Mrs. Edwards bluntly pointed out that neither of them would be able to get insurance under Mr. McCain’s health care plan.

It’s about time someone said that and, more generally, made the case that Mr. McCain’s approach to health care is based on voodoo economics: [the] foolish claim, refuted by all available evidence, that the magic of the marketplace can produce cheap health care for everyone.

McCain health plan — actually a set of bullet points on the campaign’s Web site — is entirely based on blind faith that competition among private insurers will solve all problems.

I’d like to single out one of these bullet points in particular — the first substantive proposal Mr. McCain offers (the preceding entries are nothing but feel-good boilerplate).

As I’ve mentioned in past columns, the Veterans Health Administration is one of the few clear American success stories in the struggle to contain health care costs. Since it was reformed during the Clinton years, the V.A. has used the fact that it’s an integrated system — a system that takes long-term responsibility for its clients’ health — to deliver an impressive combination of high-quality care and low costs. It has also taken the lead in the use of information technology, which has both saved money and reduced medical errors.

Sure enough, Mr. McCain wants to privatize and, in effect, dismantle the V.A. Naturally, this destructive agenda comes wrapped in the flag: “America’s veterans have fought for our freedom,” says the McCain Web site. “We should give them freedom to choose to carry their V.A. dollars to a provider that gives them the timely care at high quality and in the best location.”

That’s a recipe for having healthy veterans drop out of the system, undermining its integrated nature and draining away resources.

McCain sucks. So you'd think that any Democrat would be better on this issue than John Sidney. Sadly, no:

[Last weekend,] while Mrs. Edwards focused her criticism on Mr. McCain, she also made it clear that she prefers Hillary Clinton’s approach — “Sen. Clinton’s plan is a great plan” — to Barack Obama’s. The Clinton plan closely resembles the plan for universal coverage that John Edwards laid out more than a year ago. By contrast, Mr. Obama offers a watered-down plan that falls short of universality, and it would have higher costs per person covered.

Worse yet, Mr. Obama attacked his Democratic rivals’ health plans using conservative talking points about choice and the evil of having the government tell you what to do. That’s going to make it hard — if he is the nominee — to refute Mr. McCain when he makes similar arguments on behalf of such things as privatizing veterans’ care.

Obviously, if we're going to win the general, it's important to attack McCain starting now, as Krugman and Edwards are doing.

Yet on what should be a key differentiator between the McCain and the Democratic candidate, Obama looks more like McCain than he looks like Hillary. How's Obama going to attack McCain on this key issue when he's already tied one hand behind his back?

Leaders lead, so Obama should fix his so-called universal plan now, before it drags him, and us, down in the general.

People's lives could depend on Obama doing to right thing, so we'll be waiting.

NOTE Cue silly attacks on Krugman from the OFB. Prophylactic yawn.

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