Health Care Reform:
   Our health care system is still in need of repair. When President
   Clinton tried to fix it last year, he went in exactly the wrong
   direction: a "one size fits all" plan, run by Washington, D.C., full
   of new rules, mandates, and penalties. We shouldn't repeat his
   mistakes. We need to involve all 50 governors to help advance some
   important reforms state-by-state. A few basic insurance reforms would
   make health insurance more flexible and easier to keep when we change
   jobs or move. We should also amend the tax code so that individuals
   who buy health insurance get the same break that companies and their
   employees now receive. It is also time we started looking at medical
   IRAs, the most direct way of giving individuals control over their own
   health care costs.


Medicaid:
   We would save money -- and deliver better medical care to the poor --
   if we capped the growth of spending but gave governors the power to
   run Medicaid as they see fit.

The best way to reform Medicaid is the welfare "swap." President
   Reagan tried a version of this in the early 1980s. The first step is
   to give the states complete responsibility for welfare in exchange for
   the federal government picking up a comparable portion of state
   Medicaid expenditures. The second step is to delegate responsibility
   for administering the program back to the states without the mandates
   from Washington.