News Roundup: Free Market Medicine and A "Shocking" Friedman Development

A couple of noteworthy articles today in the news:

Paul Howard has a good overview of some of the problems facing our health care system in NRO.  His take on the tax treatment is interesting:

Imagine charging low-income Americans more for health insurance. Outraged yet? We already do that. The tax deduction for employer-provided health insurance favors higher-income workers, who get a bigger deduction and are more likely to work at firms that offer insurance. Low-income Americans working at jobs that don’t offer insurance end up paying much more for their insurance out of pocket — if they can even afford it. The tax penalty against individually purchased health insurance (30 percent or more, depending on income) is regressive and unfair.

A tax deduction or tax credit for everyone who purchases their own health plans would be much more equitable, giving millions of uninsured access to insurance. A risk-adjusted voucher for our poorest, sickest patients (think cancer) would allow them to buy into insurance markets and encourage insurers to seek them out. Employers, unions, and other civic groups could act as buying clubs for their members — helping them navigate the system and find the best values.

Also, a bizarre article by Thomas Frank in the WSJ, where he laments that the new Friedman Institute at the University of Chicago will advocate...get this...free market public policy.  I'm shocked!  This snippet below explains the very rational behavior of the donors:

"When you think about the big battle between socialism and free markets," mused Edward Snyder, dean of Chicago's Graduate School of Business, in a Bloomberg interview, Friedman "led the charge on behalf of the University of Chicago. There are a lot of people who will give back because of his name and effort and legacy."