My Nation's Health Care System

Consider the scenario of the formation of a new nation, a free nation, much like they did over 2 centuries ago. How would you establish your health care system in your new nation, starting from scratch?

In my nation, government would be given no power to touch the health system, and checks would be placed to ensure that they do not usurp such power.

Instead the health care system will be established completely by private industry. Hospitals will be run for profit, doctors will give their services for a fee, and insurance will be allowed to exist, so long as there are those who wish to use their services. It would be up to the private citizens to create ideas by which to optimize their health care performance and affordability.

I would, as part of the nation, contribute my own opinions of course. Here are a few ideas:

1. Financial institutions may decide to provide health care savings accounts. These will serve much like our current insurance plans, except that your total coverage depends on your contributions. The financial institutions would then be able to invest those funds as they saw fit, and grow your account at a rate agreed upon, much like normal savings. The rate could be higher or lower than a traditional savings account depending on the frequency of withdrawals from the account, as agreed upon between the consumer and the bank. But from these accounts, most medical needs may be paid for. Contributions to and interest gained from these accounts would be untaxed.
2. Catastrophic insurance would probably still be a good idea. I would suspect that most would choose to participate in a high deductible insurance plan that would only cover emergency room visits and high cost operations. Many would likely choose to withdraw from this system once they achieve a sufficient balance in their savings account to pay for emergency situations themselves.
3. Medical needs loans would be a good service for banks to provide. They would make loans available for those who don’t have enough yet in their savings account to cover needed medical services at a reasonable interest rate. Banks would, of course, not be required to give these loans, so they would only give them out to those they believe would be able to pay them back.
4. In order to give medical access to those at the bottom of the social curve, untaxed charitable institutions may be established to collect funds both for medical research funding, and more importantly to assist those unable to cover their own costs. These institutions would be very transparent (as required of any untaxed establishment), and would be wise to be careful on how they use their funds. They would do well to investigate the situations of those petitioning aide, and would perhaps even give their assistance in the form of a interest-free bridge loan to less deperate petitioners. Donors would then be able to choose which institution to donate to based on the performance of the charity.
5. Hospitals, clinics, and/or individual doctors may choose to charge their patients a small percentage extra in order to collect funds to provide care to those who can’t afford it. Some medical consumers may choose to opt for another doctor or opt out of the contribution, but I believe that many would instead choose to go to these particular care takers, provided they can afford it, so that they can help their fellowman. I would suspect that it would become a draw for patients, and become popular practice among medical institutions.
6. Rating systems would be established (by private businesses, i.e. Consumer Reports), where medical consumers would rate their experience, the costs of their care, wait times, etc. so that others may choose appropriately where they want to go to seek care. This would establish a very competitive industry.
7. The drug industry should be nearly unregulated. The only main regulation I might give them would be to require transparency in their studies and techniques. Consumers should be fully aware of the risks and rewards and success statistics of their product. Ideally the consumer would demand it of them, but I would be open to a possible government mandate. Other than that, these companies are free to research the best way to provide medications, supplements, and other such products to consumers. A lightly regulated drug industry should be able to pursue and obtain the profits needed to accelerate growth and research.
8. Malpractice/Tort law would, of course, be significantly reduced and simplified. Doctors who err would be given reasonable leeway for the procedures they perform. Mistakes due to malpractice would cause the cost of the procedure to be reimbursed, along with the costs of procedures required to fix the issues caused by the mistake. Excessive awards and Tort law abuse would be done away with.

I like my nation’s system a lot more.