What Health Care Reform Should Look Like

You have heard the old saying about the "cure being worse than the disease" and that definitely seems to be the case when it comes to the health care reform debate. Virtually every reform suggested will make health care more expensive and reduce the accessibility of quality care for the vast majority of Americans who are already covered. This will happen because they will have to pay for both the private system and the public system. This will likely have the same effect that the government has had on education...sure, every one can use private schools, but you are going to have to still pay for the government schools. The result of this type of policy is that 90 percent of all young people go to public, rather than private, schools.

This is a shame, considering that the US has the best health care system in the world. The life expectancy of the average American has increased by over a third in the past sixty years - from 57 to 78 years. The US is the health care capital of the world, with hundreds of thousands of people traveling here for consultations with our physicians and treatment in our hospitals. Furthermore, the U.S. has the highest cancer survival rate in the world. According to the American Cancer Society, two out of three American cancer patients are alive five years after diagnosis. This stands in stark contrast to the situation in Britain (which is under a national health care system) where barely one half of cancer patients survive five years. Over time, almost half of those in Britain with breast cancer will die (48 percent), while only one fourth with die in the US (25 percent). It is not surprising that the majority of Americans prefer their health care over a government model, according to Fox News.

To make matters worse, the biggest issues when it comes to health care are not being addressed. One of the most important of these is role of the states. The federal government does not have a proper role when it comes to health care reform. According to Article I, Section 8, the Congress has seventeen powers, none of them include forcing people to buy something they do not want to purchase. With that, the states should continue to pursue various approaches in an effort to find a better way to pursue health care reform, including:

• Restoring competition among companies nationwide. Right now you can only buy insurance from companies that are in your state. Every effort should be made for individuals to be able to buy plans around the country and for states to reduce and eliminate mandates that essentially prohibit such.
  
• Fostering individual choice and competition through Health Savings Accounts. One of the biggest problems with health care is the lack of individual responsibility and freedom. If people had to pay more for certain health care procedures, they would think economically about their health care. One of the reasons why HMOs were largely a disaster is that the cost of visiting a physician was below anything market. People faced lines and had Department of Motor Vehicle treatment. The same is around the corner with socialized health care. With HSAs, an employer could provide for many procedures -- tax free -- directly to the employee. Meanwhile these plans could be bolstered with very high deductible plans (that are quite affordable) to cover major illness or injury.
  
• Encouraging competition and portability. The states should break down the barriers that prevent true competition when it comes to the purchase of health insurance policies. Some states have only one or two carriers because of ridiculous mandates. Freedom of choice should fall on the consumer.
  
• Serious tort reform. One of the single biggest drivers in health care costs is law suits. According to Fox News, many doctors pay as much as $200,000 a year in insurance coverage. Medical malpractice lawsuits add an enormous cost to the practice of medicine. No one is advocating that people should not have recourse for when things go wrong, but if the cost is open ended, the risks are enormous, leading to high insurance premiums and, in turn, the cost of going to a physician. The Democrats, who are driving the health care reform debate, have a very cynical view of the importance of tort reform. Howard Dean, while serving as the Party's chairman, said he "did not want to take on the lawyers," expressing greater concern about one of his party's constituencies than over real reform.
  

This list, of course, is only a beginning. Meaningful discussions on the cost of regulation, the impact price fixing has on physicians who accept Medicare and Medicaid, and many other topics are worthy of debate. What is most important is that we return the discussion where it belongs -- in state capitals around the country -- and we seek solutions grounded in freedom and not in more government.


Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

So What Could we Lose in Health Care Savings?

The Los Angeles Times reported today that "President Obama, joined by an array of groups pledging to cut the cost of health care, said today the commitment that insurers, hospitals, doctors and others have made to saving money will help him achieve the health care reform he is pursuing on Capitol Hill."

The Washington Times has taken a rather dismissive tone to the actions, stating "The pledge provided few specifics on how the costs savings would be achieved or monitored. And many industry groups remain fiercely opposed to a central plank of the Obama health reform plan — the creation of a publicly funded health insurance plan to compete with private insurers and ensure universal health coverage."

Many will argue, including this writer, that any such pledges by the health care industry will likely be more verbal than monetary. This is all the more the case when you factor in the huge amounts of money the industry will have to spend to fight the Administration's socialized medicine program.

This government-private "collaboration" has problems on several levels:

• Where does an administration that has spent more in 100 days than any Administration up to Ronald Reagan spent in their entire terms, have the right to lecture anyone on fiscal responsibility?


• These dollars are being spent on something and there are always trade offs. Will the proposed $2 trillion come from cutting waste and bureaucracy? Or will it come from innovation, salaries, patient care, and other legitimate functions of health care.


• The fundamental question of the "role of government" is again, completely ignored in this "agreement."

Right now this agreement is little more than another example of Obama attempting to do "something," even if it results in little or nothing. It is an example of rhetoric without substance. The solution to America's health care problems will be found in the market place. At some point, that is where Obama needs to seriously search. What works in our economy are things like competition, reasonable risk, innovation, and economies of scale. These are found in the market, not in the government.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

American Express Takes on Capital One

It appears American Express is going after Capital One. This isn't happening in the court system but in the court of public opinion. American Express, which largely has a history of producing high brow or clever, but savvy, ad campaigns is taking more of a "head on" approach as it compares itself to the competition.

The competition in the new campaign is not mentioned by name, but it appears obvious. Recently, Capital One has been boasting about how easy it is to customize the image you want on your platinum credit card. Kittens, mom, the kids, all of these are regular choices of happy card users, according to the ads. You simply upload your images and the next thing you know you are showing off the thing, or person, or whatever you are proud of in each transaction.

American Express is arguing that such cards are not what you want to display when making business purchases. There is the poor guy who has his credit card littered with kittens and he says he is going on a business trip. As a result of the card, he faces interrogation and even cavity expections! Meanwhile, the person who walks up with his American Express Platinum Card gets on board of his flight without incidence. Then there is the poor fool who uses a super hero imaged credit card at a business meal. He thought his guests were impressed by his presentation. That positive impression was wiped a way by a silly credit card.

I'm not use to seeing American Express taking a confrontational stand, it will be interesting to see how good it is for business.

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Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Why John McCain Wants to Lower Corporate Taxes

John McCain, the presumptive nominee of the Republican Party for President, is pledging to fight for lower corporate taxes if elected. The media and his opponents will likely treat this as accommodating "the rich" in a manner that Republicans are "known." Reality check: a policy such as this is one of the few ways to help the poor become middle class and the middle class move towards affluence. That is what good economic policy accomplishes.

How will lower corporate tax rates achieve such an objective? There are several reasons and here are a few:

* Currently the US is getting pounded on the world stage by economies that either have significantly lower tax rates, ridiculously low salaries, are both. Competition exists on the micro level (store "A" vs. store "B") and on the macro level (country "A" vs. country "B"). When companies stay here because of a better tax environment, we keep more jobs, which helps every income group.

* Lower corporate tax rates encourages individuals to become entrepreneurs to create businesses and to climb the economic ladder. This benefits those individuals willing to take the risk and all the people they will hire as they rise. This doesn't even address the new tax revenues these companies create.

* One of the only beneficiaries of high corporate taxes are, ironically, the very rich. Why? Because they are insulated from potential competition who are intimidated by the high price of corporate taxes. The other beneficiary would be the government, who enjoys the revenue and let's the government be the "bad guy" by letting businesses do the tax collecting. That leads to the final point: businesses don't pay taxes, they collect taxes, and if that negatively affects their business to the point of harming competitiveness, they will move their companies some where else or never create them in the first place. Who benefits from that?

For people who believe in the free market, like myself, McCain's commitment is great news and long over due.

According to recent surveys on marketing, most advertising attracts sellers (others who want you to buy more ads) and not buyers. Do you want to know why? Email info@HoustonBusinessShow.com and put "marketing audio" in the subject line and we will get it to you.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Denny's Gets Tough with Competition

Recently I had breakfast with a business associate at Denny's and found it a very interesting experience. When I walked in the store I saw signs comparing Denny's to the competition. How they offered "real food" versus the wimpy breakfast meals of the competition. In fact, you begin to get the impression that eating breakfast anywhere else but Denny's means you are either stupid, or you like wimpy food.

This emphasis doesn't end at the locations. I visited Dennys.com and noticed the slogan for the company and seen often in the site is "Real Breakfast 24/7." They are definitely putting other restaurants on notice.

This message is also seen in their new TV commercials, which they display with pride at Denny's website. The "heroes" in these commercials -- those demanding their Denny's breakfast -- are not particularly endearing or attractive (typically the best actors for such spots), but they are tough. They want their Denny's and they want it now.

I don't know if these ads are successful or not, but they are being noticed. In an environment with so many commercials that are easy to ignore, this is certainly saying something.

For a copy of the free audio program and free report, "Why Your Marketing Isn't Working," email Info@HoustonBusinessShow.com and put "marketing" in the subject line.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Brett Farve Calls It a Career

I grew up in Michigan and was (and still am to a certain extent) a NFC Central (now North) fan. However, I never liked the Packers much, they were always difficult for my favorites (the Lions and the Bears) and I didn't like many of the personalities over the years. Brett Farve was one of the rare exceptions to that sentiment.

Brett Farve rarely spoke about how great he was, but he is one of the finest quarterbacks in the history of the game. He spoke with his strong intellect, unprecedented passion, and athletic ability and not with his mouth. During his career, Farve accumulated 3 MVPs, 8 seasons with 30 or more touchdown passes, 16 consecutive 3,000 yard passing seasons, 18 straight games with a touchdown pass in the playoffs, a record number of wins for a starting quarterback (160), 442 touchdown passes (a record), 5377 pass completions (an all time high), and many others. He was extraordinary.

For a while, because of injuries, Farve struggled with an addiction to pain killers. He didn't make excuses for the behavior, but owned it, went into recovery and put the problem behind him. He worked hard and never measured anyone by a double standard. He never expected anything from anyone, that he didn't expect for himself.

I believe we have yet to hear the end of Farve. I believe he will parlay his awesome career on the football field to a great career where ever he goes. Be it to the front office of a team, a career in coaching, or one in business. Farve's best years may very well be, yet to come.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Challenging Starbucks

Yesterday Allen Robinson and myself co-hosted our Sports Business Edition of the Houston Business Hour at a little coffee store called the Coffee Oasis. This event was arranged by Allen and the Oasis is clearly intending to challenge Starbucks in the Houston area. While there I noticed:

* A comparable quality drink

* A slightly lower price

* Free Internet (versus around $10 at most Starbucks)

* An environment very similar to Starbucks

It was a great event and we got to showcase some of the local high school teams. Also it appeared the shop was doing quite well for itself. But it also reminded me of the power of the free market and the great thing mega companies (like Starbucks) does for the economy as a whole. Starbucks proved you could have virtually unlimited establishments with relatively high priced hot drinks and make a sizable profit (sure they still sell food and music, but coffee is their mainstay). Starbucks proved it could be done and their prices are high enough to make room for competition. That is what leads to the rise of Coffee Oasis and other entrepreneurs trying to achieve the American Dream one cup at a time.

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