Oregon Health Initiative

[slarson <slarson@xxxxxxxxxxxx>]

The state of Oregon is going to vote on election day on a state health
insurance initiative. Although my knowledge of the initiative is admittedly
brief, it strikes me as carrying the major errors that plague many European
health systems. It is tax-funded - obviously - and services are to be provided
at no user cost. Sounds good, and attractive from, e.g., redistributive
reasons. However, systems of this kind have been in operation for decades in
Europe and experience is generally discouraging. Once budget-balancing policy
makers get a say in this, they will inevitably reduce output of the system as
soon as a recession comes about. This does not necessarily involve tax
increases or the introduction of user fees - although both are likely to
happen - but instead stock-piling of treatment cases. By laying off or even by
failing to keep up with increasing demand, a public health system can
effectively raise taxes as revenues grow with overall income growth. There are
many, many examples of this in Europe that definitely needs to be taken into
consideration by Oregon voters. only to mention a few, England, Holland,
Denmark, and - the crown jewel of public health mismanagement - Sweden deserve
attention in the Oregon debate.

Sven R Larson