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Don't Blame Heritage for ObamaCare Mandate

Posted By Stuart Butler On February 6, 2012 @ 1:40 pm In Featured,Obamacare | Comments Disabled

Is the individual mandate at the heart of “ObamaCare” a conservative idea? Is it constitutional? And was it invented at The Heritage Foundation? In a word, no.

The U.S. Supreme Court [1] will put the middle issue to rest. The answers to the first and last can come from me. After all, I headed Heritage’s health work for 30 years. And make no mistake: Heritage and I actively oppose the individual mandate, including in an amicus brief [2] filed in the 11th Circuit Court of Appeals [3] to the Supreme Court.

Nevertheless, the myth persists. ObamaCare “adopts the ‘individual mandate’ concept from the conservative Heritage Foundation,” Jonathan Alter wrote recently [4] in The Washington Post. MSNBC’s Chris Matthews makes the same claim [5], asserting that Republican support of a mandate “has its roots in a proposal by the conservative Heritage Foundation.” Former House speaker Nancy Pelosi [6] and others have made similar claims.

The confusion arises from the fact that 20 years ago, I held the view that as a technical matter, some form of requirement to purchase insurance was needed in a near-universal insurance market to avoid massive instability through “adverse selection” (insurers avoiding bad risks and healthy people declining coverage). At that time, President Clinton [7] was proposing a universal health care plan, and Heritage and I devised a viable alternative.

My view was shared at the time by many conservative experts, including American Enterprise Institute (AEI) scholars, as well as most non-conservative analysts. Even libertarian-conservative icon Milton Friedman [8], in a 1991 Wall Street Journal [9] article, advocated replacing Medicare and Medicaid “with a requirement that every U.S. [10] family unit have a major medical insurance policy.”

My idea was hardly new. Heritage did not invent the individual mandate.

But the version of the health insurance mandate Heritage and I supported in the 1990s had three critical features. First, it was not primarily intended to push people to obtain protection for their own good, but to protect others. Like auto damage liability insurance required in most states, our requirement focused on “catastrophic” costs — so hospitals and taxpayers would not have to foot the bill for the expensive illness or accident of someone who did not buy insurance.

Second, we sought to induce people to buy coverage primarily through the carrot of a generous health credit or voucher, financed in part by a fundamental reform of the tax treatment of health coverage, rather than by a stick.

And third, in the legislation we helped craft that ultimately became a preferred alternative to ClintonCare, the “mandate” was actually the loss of certain tax breaks for those not choosing to buy coverage, not a legal requirement.

Read more of Butler’s article [11] and learn more about Heritage’s position on the Obamacare mandate in USA Today [11]


Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2012/02/06/dont-blame-heritage-for-obamacare-mandate/

URLs in this post:

[1] U.S. Supreme Court: http://content.usatoday.com/topics/topic/Organizations/Government+Bodies/Supreme+Court

[2] in an amicus brief: http://blog.heritage.org../wp-content/uploads/Heritage-Foundation-Amicus-Brief-05-11-11.pdf

[3] Circuit Court of Appeals: http://content.usatoday.com/topics/topic/Circuit+Court+of+Appeals

[4] wrote recently: http://www.washingtonpost.com/opinions/five-myths-about-barack-obama/2012/01/17/gIQA6ykZDQ_story.html

[5] makes the same claim: http://www.msnbc.msn.com/id/43154089/ns/msnbc_tv-hardball_with_chris_matthews/t/hardball-chris-matthews-monday-may-th/#.TyroL8iM6uI

[6] Nancy Pelosi: http://content.usatoday.com/topics/topic/People/Politicians,+Government+Officials,+Strategists/U.S.+Representatives/Nancy+Pelosi

[7] President Clinton: http://content.usatoday.com/topics/topic/People/Politicians,+Government+Officials,+Strategists/Executive/Bill+Clinton

[8] Milton Friedman: http://content.usatoday.com/topics/topic/Milton+Friedman

[9] Wall Street Journal: http://content.usatoday.com/topics/topic/Organizations/Companies/Publishers,+Media,+Music/Wall+Street+Journal

[10] U.S.: http://content.usatoday.com/topics/topic/U.S

[11] Read more of Butler’s article: http://www.usatoday.com/news/opinion/forum/story/2012-02-03/health-individual-mandate-reform-heritage/52951140/1

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