Government Subsidiaries

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Homework 5
Xin Ge
The United States health care system currently has the third highest expenditures per capita. In a study done by the World Health Organization which included 191 nations, America’s health care system ranked as the most expensive system in the world, but ranked 37th in overall performance, and 72nd by overall level of health.

Democratic party challenger Jack Conway, who is running for Kentucky’s state senate seat, proposes a plan which he claims will save 430 billion dollars over the next ten years, without raising taxes. Out of the 430 billion dollars, he plans on saving 300 billion dollars of this plan from reducing costs in the American Health Care System. Part of the plan to reducing 300 billion dollars of unnecessary expenses from healthcare system, Jack Conway says he could save 200 billion dollars by just by attacking a provision that which lobbied by the pharmaceutical industry in 2004 as part of the Medicare Part D prescription drug benefit. This provision prevents Medicare from negotiating for lower prices on prescription drugs. He plans on giving Medicare full control. Medicare will have the ability to negotiate for bulk rates discounts for prescription drugs. This provision in the Medicare Part D prescription drug benefit currently protects up to 24 billion dollars of profits for the pharmaceutical companies each year.

The Republican party candidate Rand Paul has different views than Democratic party candidate Jack Conway on how America should go about health care reform. He is in favor of using free market principles for health care. Rand Paul is against government control and HMOs. He supports free market principles for the health care system because of over-regulation by the government. He feels that because the fact that when HMOs were created, in 1973, was to benefit only certain types of companies at the time. Due to the unfair advantages it gave to certain companies it has led to a distortion of the healthcare...
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