by JR Wondra

Created on: March 15, 2010

Mitch Daniels sounds off on health care bill

Indiana Governor Mitch Daniels has spoken out recently on several occasions about the effects of federal health care legislation on states’ economies, and on the effectiveness of consumer-driven health care, such as under programs in effect in Indiana.

Daniels signed landmark health care legislation during his first term, called Healthy Indiana, providing health insurance for those who earn too much for Medicaid but too little to afford their own coverage.  Under the plan, the state contributes permanent funds to individual health savings accounts.  Participants may also contribute; and when the account is depleted, a catastrophic insurance plan kicks in to cover any additional expenses.  The plan promotes preventive care and encourages citizens to become more value-conscious consumers of health care.  A similar plan offered to state employees now has over 70% participation (including the Governor); and only 3% have chosen to opt-out for an alternative PPO.

Appearing on Fox News’ “Journal Editorial Report” with Wall Street Journal editor Paul Gigot, Daniels spelled out his belief that Indiana’s legislative contingent should turn down the pending federal legislation.  One of his greatest concerns is for the state’s programs.  Calling the federal bill “very ill conceived,” Daniels went on to add that, “[Indiana’s] program for uninsured citizens would be wiped out,” by passage of the healthcare reform bill.

Calling the proposed reforms “a vey large mistake,” Daniels said he would advise his state’s Congressional delegation to focus more on incremental improvements, adding that he believed that health care reforms (such as the Indiana HSA program) should “individualize tax benefits” and “trust people more with their own decisions about their own health.”.

In an interview with CBS’ Nancy Cordes, Daniels emphasized the contrasts between current health care programs and the Indiana HSAs: “It's our current system that favors the wealthy and the healthy.  [Healthy Indiana] … respects the autonomy and dignity of its participants.”  Daniels also noted, "It's saving a lot of money for the employee and the employer."

Mitch Daniels takes a populist position that health care consumers are the best decisions makers where costs and choice of health care are concerned.  He wrote in a recent Wall Street Journal editorial, “The Indiana experience confirms what common sense already tells us.  … There will be no meaningful cost control until we are all cost controllers in our own right.  Americans can make sound, thrifty decisions about their own health. If national policy trusted and encouraged them to do so, our skyrocketing health-care costs would decelerate.”

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