Often, prevalently addressed problems about the …show more content…
According to Michael Medved and proponents of the free enterprise, the competitive economy will drive down the cost and increase productivity. By far, the healthcare in the United States has been relatively uncompetitive. In particular, current law largely restricts consumers to purchasing insurance within their own states. Also, the current tax policy offers a tax advantage to employer-based health insurance but not individually purchased insurance, causing most Americans to gravitate toward job-based coverage instead of buying insurance on their own (Capretta). These distortions, generated by government policy, have largely insulated consumers from their decisions on healthcare …show more content…
One of the most important developments in health policy in recent years has been the rapid growth of consumer-directed health plans, CDHPs (A. T. Lo Sasso). CDHPs constitute a fundamental change in the manner in which health care has traditionally functioned by placing the focus on consumers (A. T. Lo Sasso). Through tax-free Health Savings Accounts and Health Reimbursement Accounts, CDHPs could allow consumers to manage their healthcare expenses as they would other expenses. These plans are often associated with high-deductibles for catastrophic care. Many studies have confirmed that CDHPs are effective at decreasing the rate of growth of health spending and create pressure for much greater price