Paul Most agree that health care in the United States has major problems, the biggest related to skyrocketing costs.

No one doubts the system is in need of reform. However, too many in Washington see tighter government controls controls as the solution.

In fact, the problems are rooted in government controls that created more problems than they solved.

Ironically, laws and policies in the 1970s promoting Health Maintenance Organizations (HMOs) resulted from desperate attempts to control spiraling costs.

However, instead of promoting an efficient healthcare system, HMOs took far too much control away from patients and physicians and gave it to the insurers.

This excessive reliance on third-party payers instead removed incentives for insured patients to economize on health-care costs, and allowed the problem to snowball. Furthermore, the third-party payer system created a two-tier healthcare system in which people whose employers could afford to offer “Cadillac” plans have access to top quality health care, while others face financial obstacles in obtaining quality health care.

For these and other reasons, I introduced the Private Option Health Care Act last week. This bill places individuals back in control of health care by replacing the recently passed tax-spend-and-regulate health-care law with reforms designed to restore a free-market system.

First, the bill would provide Americans a tax credit for 100 percent of healthcare expenses. This credit is fully refundable against income and payroll taxes.

It would also allow individuals to roll over unused amounts in cafeteria plans and Flexible Savings Accounts (FSAs). Next, it would provide a tax credit for premiums for high-deductible insurance policies connected with a Health Savings Account (HSAs) and allow seniors to use funds in HSAs to pay for medigap policies.

In addition, it would repeal the 7.5 percent threshold for the deduction of medical expenses, and thus would make all medical expenses tax deductible.

This bill would also create a competitive market in health insurance by exercising Congress’s constitutional authority under the commerce clause to allow individuals to purchase health insurance across state lines. Ending these stateimposed bans would create a competitive national market in health insurance.

The Private Option Health Care Act would also ensure people harmed during medical treatment receive fair compensation while simultaneously reducing the burden of costly malpractice litigation on the system.

The legislation would lower the prices of prescription drugs by reducing barriers to the importation of FDA-approved pharmaceuticals. Anyone wishing to import a drug simply submits an application.

Ron Paul represents the 14th Congressional district of Texas.