We didn't lose the game; we just ran out of time. - Vince Lombardi

Hillarycare II: Obama Style

by Hal_10000

Michael Cannon breaks down Obama’s health care “reform”:

On the stump and in commercials, Senator Obama says that his plan is based on allowing you to “keep your current coverage.” But what he is not telling you is that he wants to impose a “standard benefits package” that every plan would have to offer. Those additional benefits will reflect the power of various special interest provider groups and disease constituencies, not consumer preferences. So, if you have an insurance policy that you are happy with today, but it does not match the type of plan that Sen. Obama thinks you should have, then you will have to switch plans, even if the new plan costs more.

Ah, the health care mandates that Obama so eagerly supported as a state senator.  These are where special interests, such as aroma-therapists, get the state to mandate that insurance cover aromatherapy.  This is a principle reason why many can’t afford insurance.  If Obama puts this in place, millions will lose their insurance.  You have to wonder if that’s the point.

Sen. Obama has also promised that his plan would reduce premiums by increasing the use of electronic medical records, cutting administrative costs, and emphasizing preventive care, but most experts believe those projected savings are highly speculative and unlikely to be seen for many years - if ever.

I’ll fall back on my experience here.  I worked in medicine for 13 years.  They’ve promised us electronic records since about 1982.  No luck so far.  And since when has imposing new government agencies and control decreased administration?  That would be never.

I would also point out that preventative care does not save money.  It’s cheap to die.  Living is the expensive bit.  What do you think is cheaper?  Letting someone drop dead of a heart attack at 50?  Or putting him on Lipitor for 20 years only to have him die slowly of cancer at 70?  Any time I hear a politician promise to save money with preventative care, I see a small sign appear over his head that says, “I know nothing”.

Preventative care is about saving lives not money.  And it is almost certainly the first thing that will be cut once the government is paying the bills.

Estimates of how much the Obama plan would cost range from $65 billion per year (the campaign’s estimate) to $600 billion per year (by Health Systems Innovations (which has consulted for the McCain campaign). More neutral sources put the cost between $110 billion and $160 billion per year. Any way you look at it, the Obama plan will cost a lot. Sen. Obama has not spelled out specifically how he would pay for these costs, but more generally has suggested that the extra money would come from allowing the Bush tax cuts to expire and ending the Iraq war. But, given his other spending promises, estimated to run between $300 billion and $1 trillion per year, some additional revenue will almost certainly be necessary. Moreover, Obama would require that nearly all businesses, including many small businesses, provide health insurance to their employees. This mandate will increase the cost of employing a worker by nearly $12,000 per employee. This is effectively a tax increase on businesses, and will ultimately be passed on to their workers.

...

Private insurance companies would still exist, but they would operate much like public utilities with the government involved in deciding what benefits they offer, what they can charge, and how they operate. Beyond that, Sen. Obama would establish a separate government-run health insurance plan that would operate in competition with private insurance plans. In theory, people would be able to choose between the government plan and private insurance. In reality, however, such a government-run plan would have an inherent advantage in the marketplace because it would ultimately be subsidized by American taxpayers. The government plan could, for instance, keep its premiums artificially low or offer extra benefits since it can turn to the U.S. Treasury to cover any shortfalls. The lower-cost, higher benefit government program would attract consumers, undercutting the private market, resulting in an inexorable slide toward government-run health care.

The more I look at the Obama plan, the more I have to think that it’s designed to gradually destroy the private health insurance system and push everyone into a government plan (a process Bush has already set in motion by expanding Medicaid).  After all, a single-payer system is what Obama says we should have had in the first place.  It’s the old frog-boiling technique—moving us into it slowly.

Change we can believe in, folks.

Comments

Posted by on 10/24/08 at 09:53 AM from

The more I look at the Obama plan, the more I have to think that it’s designed to gradually destroy the private health insurance system and push everyone into a government plan

I think you are right Hal. I’m no economist, but I see NO way the Govt will be able to pay for this huge plan with all the mounting debt the bailout and other things are costing us.  Taxes are going up no matter who wins.

And I hope you are feeling better...Have you thought about getting a new kitten yet?

Posted by on 10/24/08 at 10:29 AM from

Hmmm....let me see:  $150 billion divided by 300 million people, is $500 a head.  It is a friggin’ bargain compared we pay now.  Where do I sign up!?

I don’t get it?  Isn’t McCain saying he is going to give everyone $2500 or $5000 per family?  Isn’t that more?

How is providing healthcare for employees of small companies going to cost $12,000 per employee per year?  Where are they buying their insurance from?  Nobody pays that much in even the most expensive cities.

General comment:  people have to wake up and smell the coffee.  We are so deep in a deficit hole due to the Bush legacy of huge government and big war commitments either taxes go up or we go broke.  That having been said, taxes may be the least of our problems.  Whoever is getting in is inheriting a complete mess. I don’t see a friggin’ thing happening in “national” healthcare for at least 5 years.

Posted by on 10/24/08 at 10:44 AM from

We are so deep in a deficit hole due to the Bush legacy of huge government and big war commitments either taxes go up or we go broke.

It’s not just the federal government either. California is in a huge hole, and every election cycle there are another several bond issues on the ballot that seem to keep passing. The latest is for children’s hospitals. I was in an argument with a friend the other day, who couldn’t believe I oppose it. ("Think about the children!” etc.)

My point was that I AM thinking about the children, who are going to grow up and inherit this massive debt. I feel bad for my kids...they’re completely screwed in about 20-30 years due to the mess we’re leaving them.

Posted by on 10/24/08 at 11:25 AM from

"Change we can believe in, folks.” Yeah, well, I say, “keep the Change!”

Posted by on 10/24/08 at 12:08 PM from

Bush legacy of huge government

I’m no Bush apologist, but let’s not pretend that the biggest deficit increase in our nation’s history wasn’t a joint venture.  If anything, blame the democrats for laying the groundwork during Clinton’s presidency.

Posted by Hal_10000 on 10/24/08 at 12:17 PM from

Hmmm....let me see:  $150 billion divided by 300 million people, is $500 a head.  It is a friggin’ bargain compared we pay now.  Where do I sign up!?

That’s in addition to the insurance premiums you’re paying out of your own pocket.

I don’t get it?  Isn’t McCain saying he is going to give everyone $2500 or $5000 per family?  Isn’t that more?

This would replace the employer deduction and be revenue neutral (at least according to McCain).

How is providing healthcare for employees of small companies going to cost $12,000 per employee per year?  Where are they buying their insurance from?  Nobody pays that much in even the most expensive cities.

It will when you are talking about plans that have all kinds of coverage mandates and cover entire families and pre-existing conditions.

Posted by on 10/24/08 at 12:40 PM from

We won’t go to single-payer until we have a crisis in the same vein as the current economic crisis and have to spend taxpayer money to privatize the industry.

It’s the American way.

Posted by on 10/25/08 at 06:28 AM from

This would replace the employer deduction and be revenue neutral (at least according to McCain).

And “replacing” the employer deduction isn’t the same as increasing taxes that companies have to pay?

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