The prospects for repealing and replacing Obamacare are fading rapidly. Senate Majority Leader Mitch McConnell, R-Ky., sensing inevitable failure in the Senate, is already shifting the endeavor to the back burner. The time has come for the Trump administration to make a bold proposal, circumventing the deadlock and shattering conventional wisdom.
President Trump should embrace a new, genuinely conservative version of the single-payer system used throughout the developed world. In the process, by building a new coalition of social conservatives and economic populists, Trump could permanently reshape the political landscape.
The current strategy of Ryancare was doomed from the start. It required the successful threading of a needle from a distance of a thousand yards. Given the razor-thin margins of Republican majorities in both houses, the 60-vote cloture obstacle in the Senate, and the Byzantine restrictions on the "reconciliation" gambit for relying on 50 senators and the vice president, and given that no complicated, Rube Goldberg-like contraption will ever be able to satisfy both the libertarian Freedom Caucus in the House and Republican moderates in the Senate, no plan devised by conventional "conservatives" has any hope of passage.
You cannot simultaneously provide cheap coverage for those with pre-existing conditions, move toward a free market and reduce federal spending. A prudent politician does not attempt the impossible.
We already spend more of the taxpayers' dollars per citizen on our failed health care system than every country with a single-payer system (with the sole exception of Norway). Let that fact soak in: We could provide every citizen with coverage as good as anything available in Canada or Australia and still reduce government health care spending. In fact, by simultaneously eliminating the huge tax advantages given to health care, we could lower marginal taxes and balance the budget.
How is such a magical solution possible? Because we now have the worst possible system of all — one in which massive federal spending drives up medical costs, while the lack of an elegant, single-payer system deprives tens of millions of the security of coverage and foists the huge burden of costly private insurance on our businesses and industries.
With a single-payer system, the government could use its overwhelming position as the dominant buyer of health care to reduce costs dramatically, bringing both industry profits and physician and executive salaries back to sensible and sustainable levels.
Does this mean that Trump should endorse a Bernie Sanders-like single-payer system, similar to what has been proposed in California? Absolutely not.