CapitalistMarks

Health care reform at a glance. Not pretty.

Posted on 25. Mar, 2010 by scott in Social commentary, economic daydreaming, political munglings

Enough time has not passed for me to consider the recently passed Health Care Reform bill.  All of the Rhetoric has given way to kinder and gentler vitriolic and threatening words from both sides of the aisle in the ‘hollowed’ halls of Congress.

The Repubs are guaranteeing to make this the #1 issue in this year’s midterm elections.  Some are even proposing to repeal the bill.  Of course, Obama, has struck back with ‘bring it on’ which is scary since weren’t those the exact (or very close) words Bush used when referring to Osama Bin Laden and his rag-tag crew a few years ago?

But at least we, the people, are now getting a chance to look at the bill (several web sites including  Whitehouse.g0v link to copies).

Politics aside this bill is clearly better (at least for 30 million Americans) than nothing . . . and there are some real advantages to what has been passed: no lifetime limits for coverage of serious illness (like the cancer that has struck both the mother and father of a great family we know), and no arbitrary exclusion of coverage for pre-existing conditions.

Great.  And of course as the only developed nation in the world that doesn’t offer health care as a ‘right’ we have just added those 30 million mentioned above to the system so we are a bit closer to the health equity of all other rich nations.

And this is probably a good thing.

Yesterday I was driving home from a doctor’s appointment with my wife when we heard a discussion about that very point on the radio.  She turned to me and said something I had never heard from her before–and believe you me it pressed home the point.

“I remember my Dad telling my Mom with real astonishment a few months after we had emigrated here from Germany, ‘I had no idea that you get no health care in America — you have to pay for it all yourself, either with insurance or out of your own pocket.  The government does nothing.’  They were both worried and the result was that while I grew up my brothers and I  hardly ever saw dentists or doctors because we couldn’t afford to.”

Boy that struck home.  If my 4 kids had not had good insurance while growing up then none of them (nor I) would be around today.

Of course from a social justice point (and to heck with that airhead Glen Beck for ridiculing that term) America should provide health care to those who need it.  How can we have ‘life, liberty and the pursuit of happiness’ without good health?

BUT . . . on the other hand.  How do we (and believe me it is you and I that will) pay for it??

Big issue and one that the Obama plan practically ignores.

I took a survey and extended it from the one person I polled to the entire nation.  Here is what I found out.

Most Americans would like to see the government provide health care to all . . . they just don’t want to pay for it with more taxes.  What they DO want is to lower the out-of-control inflation of health care costs and the crazy increases in insurance premiums.  Did you know that if health insurance premiums continue at the rate of the last decade then in another decade or two all of our paychecks will go to health insurance?  True.  And that is a scary thought.

Government always over-extends social benefits–and not just the democrats.

Social Security?  The standard employee withholding in 1950 was 0.2% (the amount the government takes out of your wages for you to contribute to S.S.) and today it is 6.2% or a 3100% increase!  Further S.S. is the most expensive government program in the world and America’s biggest federal budget expenditure all while being essentially bankrupt.

Medicare?  Medicaid?  Same kind of thing with even worse funding and cost problems down the raod.  Do your own search but I assure you that what you read will be scary.  And now we add another program that is almost just as bad and will certainly bet worse?

What is going to happen with this new reform?  We know that, at least, in the next ten years it is going to cost about $1 trillion and as our government gets into it and as entitlements increase the costs are going to soar just like other entitlement programs in the past.  That seems to be inevitable human and political nature.

This reform does very little to deal with the most critical issue on the health care horizon:  costs.

America has to find a way to lower cost inflation in health care.  Actual costs have to be lowered while still providing reasonable service.  The bill is silent on the issue.  No interstate competition for insurers (Adam Smith assured us that competition would always drive prices lower), no effort to deal with Tort Reform and limit frivolous law suits (that enrich greedy lawyers who then run for Congress, yech), no legislation that deals with incredible RX costs (ours are much higher than most nations even though a majority of new drugs are developed by U.S. companies), and there are other ways to cut costs too — but Obama failed to address them.

Seems like tax and spend, or spend and tax, all over again.

How the heck are we going to pay for this thing 10 years down the road.  Will the 4% surtax on the wealthy be increased by 3100% and extended to everyone like Social Security funding?  My math shows that is not even possible but the thought is scary enough.

We can’t afford  to have another Social Security system or another Medicare/Medicaid system.  Not without giving up defense programs, the war on terror, and many other federal programs.

Maybe, and it pains me to admit this, the repubs have it right and they should try to repeal this bill and start over by taking health care issues one at a time and do each of them methodically and  right.  I do know that as it stands we surely have moved one step to the left and are closer to European socialism than we have ever been before.

For a free market, true democracy, freedom of choice guy like me this bill smells bad.  Something is rotten in Denmark Washington D.C. and in a few years our Treasury is going to need open heart surgery and a full financial-resucitation all at once!!

Sorry folks, but the truth hurts.

Tags: health care reform, medicaid, medicare, President Obama, social security, the fiscal folly of health care reform