Efficient Resolution of Moral Hazard in Health Insurance Industry

Dear President Obama,

The current health insurance debate bares an important issue that I have been researching on: efficient resolution of moral hazard.

The current system of health insurance has effectively “blackmailed” the taxpayers as the spending Medicare and Medicaid has exploded. But it has also “blackmailed” employers and producers of competitive goods and services with higher insurance premiums.

The persistent trade imbalance shows that the nation has become less competitive with the dollar fail as the global reserve currency. The total direct export of the healthcare industry as a percent annual sales within USA must be miniscule. The direct contribution of the healthcare industry to competitiveness is thus very negative.

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