Saturday, February 24, 2007

Encouraging Innovation by Reforming Health Care?

In today's WSJ, Bob Litan offers several proposals that could help encourage innovation in the U.S. The usual suspects on his list include lowering barriers to entry, making teachers and principals in K-12 more accountable, and improving ways for university-developed ideas to be commercialized. What suprised me was his linking of innovation with health care reform, namely that we should delink healthcare from employment for the sake of encouraging entrepreunerial activity. He writes:

"Escalating health-care costs rank high on entrepreneurs' lists of concerns. They're not alone. Workers are anxious about losing their own health insurance, especially if they take the risk to leave their stable jobs to form their own businesses."

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