SPIEGEL: Part of the problem when it comes to health care is the lack of solidarity in the American way of thinking. Can a president change a country?
Krauthammer: Yes. Franklin D. Roosevelt did it. Back then, we didn't have a welfare state, we didn't have old age pensions, we didn't have unemployment insurance. This country was the Wild West until FDR. Yes, you can change the spirit of America.
SPIEGEL: If Obama is so radical, why is the left wing of the Democratic Party so unhappy with him?
Krauthammer: They are disillusioned because he has ignored some of their social agenda, such as gay rights; continued some of the Bush policies he had once denounced, such as the detention without trial for terrorists; and on his large agenda for education and energy, where he has had no success.
SPIEGEL: How could Obama still win Republican support for healthcare reform?
Krauthammer: He should finally realize that we need to reform our insane malpractice system. The US is spending between $60 and $200 billion a year on protection against lawsuits. I used to be a doctor, I know how much is wasted on defensive medicine. Everybody I practiced with spends hours and enormous amounts of money on wasted tests, diagnostic and procedures -- all to avoid lawsuits. The Democrats will not touch it. When Howard Dean was asked why, he said honestly and explicitly that Democrats don't want to antagonize the trial lawyers who donate huge amounts of money to the Democrats.
SPIEGEL: What would be your solution?
Krauthammer: I would make Americans pay half a percent tax on their health insurance and create a pool to socialize the cost of medical errors. That would save hundreds of billions of dollars that could be used to insure the uninsured. And second, I would abolish the absurd prohibition against buying health insurance in another state -- that reduces competition and keeps health insurance rates artificially high.
SPIEGEL: But you also need to cut back on healthcare expenses.
Krauthammer: It is absolutely crazy that in America employees receive health insurance from their employers -- and at the same time a tax break for this from the federal government. It's a $250 billion a year loophole in the government's budget. If you taxed healthcare benefits, you would have enough revenue for the government to give back to the individual to purchase their own insurance. If you did those two reforms alone, you would have the basis for affordable health insurance in America.
What the Democrats seem to be aiming for, however, is something somewhat different: the government gets control of the healthcare system by proxy; you heavily regulate the insurance companies, you subsidize the uninsured. That kind of reform would also work, but less efficiently -- and because of its unsustainable costs, we would, in the end, have to go to a system of rationing, the way the British do, the way the Canadians do, there is no other way. Obama can't say any of that, the word rationing is too unpopular.
SPIEGEL: Mr. Krauthammer, can a Nobel Peace Prize winner send more troops to Afghanistan?
Krauthammer: Sure, I don't see why not. The prize could have two contrary effects. It could give him an incentive to send more troops to show his own people that he is not an instrument of five Norwegian leftists. Or it can work the other way where in order not to lose the popularity he obviously feels from Europe, he would be less inclined. I think whatever impulses come out of those considerations neutralize each other. The prize will have zero effect on his decision.
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