America's healthcare system is at a crossroads, faced with rising costs, quality concerns, and a lack of patient control. Some blame market forces. Yet many troubles can be traced directly to pervasive government entitlements, tax laws, and costly regulations. Consumer choice and competition deliver higher quality and lower prices in other areas of the economy. The authors conclude that removing restrictions can do the same for health care.
"[B]ecause medicaid is a means-tested program, individuals lose eligibility if their income exceeds a certain amount. As a result, beneficiaries often avoid work and savings if it would mean losing Medicaid benefits. Likewise, potential beneficiaries often reduce work effort and savings in order to become eligible. These incentives pull many Americans toward poverty. Meanwhile, the tax burden imposed by Medicaid--which includes its effects on the cost of private medical care and insurance--makes the climb out of poverty more difficult for those who try."
-Michael Cannon and Michael Tanner, Healthy Competition