Cato’s Michael F. Cannon on Senate Majority Leader Harry Reid’s latest bright idea: “President Obama and his congressional allies want to create yet another government-run health insurance program (call it Fannie Med) to cover yet another segment of the American public (the non-elderly non-poor).

The whole idea that Fannie Med would be an ‘option’ is a ruse.

Like the three ‘public options’ we’ve already got – Medicare, Medicaid, and the State Children’s Health Insurance Program – Fannie Med would drag down the quality of care for publicly and privately insured patients alike. Yet despite offering an inferior product, Fannie Med would still drive private insurers out of business because it would exploit implicit and explicit government subsidies. Pretty soon, Fannie Med will be the only game in town – just ask its architect, Jacob Hacker.

Now the question before us is, ‘Should we allow states to opt out of Fannie Med?’ It seems a good idea: if Fannie Med turns out to be a nightmare, states could avoid it.

But the state opt-out proposal is a ruse within a ruse.

Taxpayers in every state will have to subsidize Fannie Med, either implicitly or explicitly. What state official will say, ‘I don’t care if my constituents are subsidizing Fannie Med, I’m not going to let my constituents get their money back’? State officials are obsessed with maximizing their share of federal dollars. Voters will crucify officials who opt out. Fannie Med supporters know that. They’re counting on it.

A state opt-out provision does not make Fannie Med any more moderate. It is not a concession. It is merely the latest entreaty from the Spider to the Fly.” [End excerpt]

And this from Tom DiLorenzo:

“The only sensible approach to healthcare ‘reform’ would be massive privatization of America’s socialized hospitals, combined with deregulation of the medical professions to introduce more competition, and deregulation of the health-insurance industry. Free-market competition would produce medical ‘miracles’ the likes of which have never been seen, while dramatically lowering the cost of healthcare, just as it has done in every other industry where it is allowed to exist to any large degree.

This is not likely to happen in the United States, which at the moment seems hell-bent on descending into the abyss of socialism. Once some states begin seceding from the new American fascialistic state, however, there will be opportunities to restore healthcare freedom within them.”

Update (Oct. 28): To the erroneous comment below from “Moonbat”: The market NOW in its knee-capped state still delivering abundance and plenty. The consumer/citizen is obvious to what comes as a seemingly effortless result of the Invisible Hand. So good ideas do not win out; ditto liberty.

Milton Friedman spoke about mankind’s oblivion to the abundance of the market with great clarity.

“The aggregated wisdom of men acting freely in the market place accounts for the cornucopia Americans take for granted. This abundance does not preclude affordable health insurance. For six dollars a day, the baying Boobus can purchase pretty comprehensive coverage, no deductibles or screening for pre-existing conditions. The average immoral dolt, however, prefers to spend the meager sum on a six-pack and hope that others will be coerced into covering his care.”

Cato’s Michael F. Cannon on Senate Majority Leader Harry Reid’s latest bright idea: “President Obama and his congressional allies want to create yet another government-run health insurance program (call it Fannie Med) to cover yet another segment of the American public (the non-elderly non-poor).

The whole idea that Fannie Med would be an ‘option’ is a ruse.

Like the three ‘public options’ we’ve already got – Medicare, Medicaid, and the State Children’s Health Insurance Program – Fannie Med would drag down the quality of care for publicly and privately insured patients alike. Yet despite offering an inferior product, Fannie Med would still drive private insurers out of business because it would exploit implicit and explicit government subsidies. Pretty soon, Fannie Med will be the only game in town – just ask its architect, Jacob Hacker.

Now the question before us is, ‘Should we allow states to opt out of Fannie Med?’ It seems a good idea: if Fannie Med turns out to be a nightmare, states could avoid it.

But the state opt-out proposal is a ruse within a ruse.

Taxpayers in every state will have to subsidize Fannie Med, either implicitly or explicitly. What state official will say, ‘I don’t care if my constituents are subsidizing Fannie Med, I’m not going to let my constituents get their money back’? State officials are obsessed with maximizing their share of federal dollars. Voters will crucify officials who opt out. Fannie Med supporters know that. They’re counting on it.

A state opt-out provision does not make Fannie Med any more moderate. It is not a concession. It is merely the latest entreaty from the Spider to the Fly.” [End excerpt]

And this from Tom DiLorenzo:

“The only sensible approach to healthcare ‘reform’ would be massive privatization of America’s socialized hospitals, combined with deregulation of the medical professions to introduce more competition, and deregulation of the health-insurance industry. Free-market competition would produce medical ‘miracles’ the likes of which have never been seen, while dramatically lowering the cost of healthcare, just as it has done in every other industry where it is allowed to exist to any large degree.

This is not likely to happen in the United States, which at the moment seems hell-bent on descending into the abyss of socialism. Once some states begin seceding from the new American fascialistic state, however, there will be opportunities to restore healthcare freedom within them.”

Update (Oct. 28): To the erroneous comment below from “Moonbat”: The market NOW in its knee-capped state still delivering abundance and plenty. The consumer/citizen is obvious to what comes as a seemingly effortless result of the Invisible Hand. So good ideas do not win out; ditto liberty.

Milton Friedman spoke about mankind’s oblivion to the abundance of the market with great clarity.

“The aggregated wisdom of men acting freely in the market place accounts for the cornucopia Americans take for granted. This abundance does not preclude affordable health insurance. For six dollars a day, the baying Boobus can purchase pretty comprehensive coverage, no deductibles or screening for pre-existing conditions. The average immoral dolt, however, prefers to spend the meager sum on a six-pack and hope that others will be coerced into covering his care.”