by Matthew J. Geiger

Created on: September 08, 2009

The objective of healthcare reform is to ensure all Americans can have access to the care they need by expanding coverage to the uninsured, as well as the underinsured, and reducing costs so the insured can maintain adequate coverage in the future. Although the current debate on reform has stirred some very strong emotions over what should be done, the need to address exploding costs is one aspect that almost everyone can agree on. There are a myriad of helpful ways costs can be controlled; however, how legislative provisions implement reform will determine whether or not it is successful. Most importantly, the focus of reform efforts must be to encourage healthcare providers to improve quality and reduce costs on a continual basis.

By improving quality, costs will initially increase, but this is an important step in healthcare reform. Expanding coverage to over 40 million additional Americans on top of the 91 percent of the population with coverage will also strain resources. Meanwhile, improving coverage for the underinsured, as well as forcing insurance providers to cover patients with expensive diseases, such as cancer and other supposed preconditions, will be used to justify price increases for all policyholders. Then again, forcing the marketplace to improve and expand coverage too quickly would create dramatic price hikes that can potentially be avoided if legislators are focused on creating momentum versus immediate results. Unfortunately, any efforts to guarantee Americans have adequate, meaningful coverage is sure push to up prices in the insurance industry in at least the short-term.

Today, America rations healthcare based on wealth versus need and the likelihood of effectiveness; however, the American capitalist system provides an answer. Even though increased demand strains limited resources, healthy competition in the marketplace can force greater efficiency and increased availability of a product at a lower cost. For the healthcare industry, this would mean forcing healthcare providers to serve a larger consumer base under well-defined standards of coverage. In turn, this could decrease inefficiencies in treatment and administrative costs as well as create greater opportunity for new healthcare providers in the long run.

One such idea to increase competition in the marketplace is a public healthcare option managed by a government agency or nongovernmental organization that would subsidize coverage for those who cannot afford care. This could

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