McCain and Obama on Health Care

In today's Milwaukee Journal Sentinel, Patrick McIlheran wades through the truth and the fiction, the pros and the cons, of the health care plans of Barack Obama and John McCain.

The differences in their plans reflect their different political philosophies.

October 7, 2008 presidential debate

MODERATOR TOM BROKAW: Quick discussion. Is health care in America a privilege, a right, or a responsibility?

The discussion was somewhat muddled and it wasn't quick, but we did get an answer from the candidates.

JOHN McCAIN: I think it's a responsibility, in this respect, in that we should have available and affordable health care to every American citizen, to every family member.

_______________

BARACK OBAMA: Well, I think it should be a right for every American.

McIlheran explains:

This is the real difference between the two. Obama’s plan enshrines the principle that has brought us spiraling costs: that everyone is paid for by someone else, either an employer or the government. It tries to revivify our current set-up — preserving its perverse incentives. Insulated from the price, employees have an incentive to run every routine expense through insurance, raising spending. Meanwhile, the ultimate back-stop payer, the government, has every incentive to stint on coverage and to deny care in an effort to cut costs.

McCain’s plan, by delinking the government’s subsidy from your job, is centered on the idea that people buy their own coverage with the help of the government, an employer or others.

Insured people are in control of the money, so it changes the incentives, says [Robert Carroll of the nonpartisan Tax Foundation], in a way more likely to control costs and let innovation flourish. That’s important as the Medicare entitlement crisis looms. It’s critical if you’d rather it be you, not the someone else who’s paying, in charge of your care.

McCain's plan empowers the insured, and is more likely to control costs and encourage innovation.

Obama's plan doesn't offer that change. His focus is on entitlement.