Now that the House has reached a compromise on health care, we can all breathe easier.
That’s the theory, anyway. Congress believes that having portable health care that competes with insurance companies will enhance our productivity by freeing up workers who might not change jobs or start new ventures because they might not get health insurance But a major issue is preserving innovation. Our health care companies have been the most innovative in the world. Indeed, 14 of the world’s 20 biggest health care companies are American. Because competition provides significant financial incentives, new drugs, new devices, and new procedures are developed here first. That’s why rich people fly to America to get advanced treatment.
It’s not clear how the cost-trimming, public option, insurance mandating house bill will do this. If we squeeze our health providers to provide for the uninsured, they may just shrug their shoulders and walk away. And that won’t be healthy for anyone.
Douglas R. Tengdin, CFA
Chief Investment Officer
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