The Newt Gingrich Plan to Cut Health Care Costs

If we can cut costs by focusing on simple, private sector, and commonsense solutions, we can cut insurance premiums and expand coverage to many more who want to buy it. And we don't need a federal star chamber to ration health care to the deserving and withold it from the undeserving.

I add to Gingrich's solutions a seventh step. Assure all illegal aliens that anyone over eighteen that shows up for health care will be turned over to Immigration and Naturalization as soon as they are treated.

1. Stop Paying the Crooks. First, we must dramatically reduce healthcare fraud within our current healthcare system. Outright fraud — criminal activity — accounts for as much as 10 percent of all healthcare spending. That is more than $200 billion every year. Medicare alone could account for as much as $40 billion a year. (Read about our latest CHT Press book, Stop Paying the Crooks, edited by Jim Frogue.)

2. Move from a Paper-based to an Electronic Health System. As it stands now, it is simply impossible to keep up with fraud in a paper-based system. An electronic system would free tens of billions of dollars to be spent on investing on the kind of modern system that will transform healthcare. In addition, it would dramatically increase our ability to eliminate costly medical errors and to accelerate the adoption of new solutions and breakthroughs.

3. Tax Reform. The savings realized through very deliberately and very systematically eliminating fraud could be used to provide tax incentives and vouchers that would help cover those Americans who currently can’t afford coverage. In addition, we need to expand tax incentives for insurance provided by small employers and the self-employed. Finally, elimination of capital gains taxes for investments in health-solution companies can greatly impact the creation advancement of new solutions that create better health at lower cost.

4. Create a Health-Based Health System. In essence, we must create a system that focuses on improving individual health. The best way to accomplish this is to find out what solutions are actually working today that save lives and save money and then design public policy to encourage their widespread adoption. For example, according to the Dartmouth Health Atlas, if the 6,000 hospitals in the country provided the same standard of care of the Intermountain or Mayo health clinics, Medicare alone would save 30 percent of total spending every year. We need to make best practices the minimum practice. We need the federal government and other healthcare stakeholders to consistently migrate to best practices that ensure quality, safety and better outcomes.

5. Reform Our Health Justice System. Currently, the U.S. civil justice system is the most expensive in the world — about double the average cost in virtually every other industrialized nation. But for all of the money spent, our civil justice system neither effectively compensates persons injured from medical negligence nor encourages the elimination of medical errors. Because physicians fear malpractice suits, defensive medicine (redundant, wasteful treatment designed to avoid lawsuits, not treat the patient) has become pervasive. CHT is developing a number of bold health-justice reforms including a “safe harbor” for physicians who followed clinical best practices in the treatment of a patient.

6. Invest in Scientific Research and Breakthroughs. We must accelerate and focus national efforts, re-engineer care delivery, and ultimately prevent diseases such as Alzheimer’s Disease and diabetes which are financially crippling our healthcare system.

Shelley Moore Capito Criticizes Porkulus Package

The Wheeling News-Register recently editorialized on the dangerous amount of government spending in the pork laden stimulus package passed by Obama and Congress. One thing the president and Congress agreed upon in the first month of office was the need for an unpopular Democratic Congress to toss money at temporary or useless projects instead of refurbishing America's infrastructure or putting money back into the hands of taxpayers.

Token tax relief does exist. On average, workers will have $13 more per paycheck than before. This may buy an additional two lunches per month, but it fails to help spur the big ticket purchases that will help the manufacturing sector. Congresswoman Shelley Moore Capito stated that the nearly $800 billion package needed "more overall tax relief and less government bloating."

Over 25% of the package goes to the states and most will use it to help balance their budgets. However, typical of liberal Democratic over management, responsible states such as West Virginia find their money has been allotted for specific purposes that our state government does not have. So the money is sent, can only be spent on specific things, and any unused money must be sent back. Republicans tend to prefer block grants allowing states to decide for themselves what to do.

Where were Senators Byrd and Rockefeller when this was all decided? Why didn't Rahall and Mollohan intervene with the Democratic leadership on behalf of their own state? Why did they not confer with Governor Manchin and determine what his priorities were? Surely they are on speaking terms, right? Such powerful senators then could have gotten what we needed. After all, that was the main reason they gave for being reelected. Would that have not made some sense?

At least West Virginia taxpayers have one congressional representative working for them this year.

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For Congresswoman Capito, the stimulus issue hits close to home. Her husband is an executive with troubled Citicorp, a target of stimulus money. Capito voted her principles and for her country's future despite its conflict with teh short term interests of her husband's employer.

Is it any wonder that West Virginians are clamoring for Ms. Capito to take a stronger role in the leadership of this state when the time comes?

Protestors Rally Against Bailout