Tuesday, June 16, 2009

A Few Comments on Health Care Reform

Guess who said this.

And again I will say we must do this together. I pledge to you that I will do my best to see that business and labor and Government work together for a change.

But all of our efforts to strengthen the economy will fail—let me say this again; I feel so strongly about this—all of our efforts to strengthen the economy will fail unless we also take this year, not next year, not 5 years from now but this year, bold steps to reform our health care system.


No, it wasn't President Obama telling the AMA how he was going to reform the USA's health care delivery and financing system within 90 days. This is a quote from former President Bill Clinton's 1993 state of the union address. Due to the secrecy used to cover byzantine health care rationing, "Hillary Care" never came to be. If it had we would have deficit spending every year of the Clinton Administration and a health care system much worse than we have today. Maybe that's why Obama appointed HRC Secretary of State, to keep her out of his attempts to reform our health care system into what he thinks it should be.

Another question. Who was the first president(or presidential candidate) to advocate health care reform. Not Bill Clinton, but Theodore Roosevelt back at the beginning o of the 20th century, not the end of it.

The only change brought on by congress in our health care system was medicare back in 1966. It was part of LBJ's Great Society platform. It was the first government sponsored enterprise (GSE) to deal with our nation's health care financing. Now Obama and Kennedy want another GSE to help reform some of the shortcomings of our current system. Yes folks, you read me correctly. They want a public health insurance plan to compete with private health insurance. They believe this competition will keep private health insurance on its toes and hold down increases in health insurance premiums. Yeah, Right!! When Medicare was introduced most private insurers decided to not offer primary coverage to medicare beneficiaries. They only offered medicare supplement plans to cover deductibles and coinsurance. I doubt this public option, if it is ever enacted, would do what President Obama and his fellow reformers expect it to do.

And one more comment. This public insurance plan sure sounds like it will become for health insurance what Fannie Mae and Freddie Mac are for housing. This makes me hope congress does not enact this plan. If the 70-80% of Americans are happy with their current coverage why are our leaders doing this public plan???
Also, in Kennedy's plan are 2 interesting provisions. One, all employers will be required to cover their employees or pay into a public insurance pool for people who cannot get or afford existing insurance. Second, Medicaid Coverage (basically health insurance for children,the disabled and seniors (age 65+)with limited income and resources) will be provided to all families whose income is less than 500% of the federal poverty level. For a family of four, this is $110,000 yearly !!!

The first question that comes to my mind is this. IF, employers are required to "play or pay" (give their employees health insurance or fund an insurance pool with their hard earned revenues) won't they be more reluctant to pay more cash compensation to their employees? IF so, won't fewer and fewer employees get raises and bonuses? Won't this mean more and more families will make less than 500% of poverty level income? If so, they will also be eligible for Medicaid. Who will be the primary insurer, medicaid or the employer's insurance? If I were an employer, forced to cover my employees with health insurance and found out several of my employees were receiving medicaid coverage as well, I would want to drop all insurance coverage like a very hot potato.

Second question, how will all these draconian and duplicitous measures make our health care system any better? Or, even better how will it make our economy any stronger or better? Every regulatory process (i.e. burden) the government imposes on employers is actually a really great boon to industry...if you are in the offshore outsourcing industry. Otherwise, it is a boon to the unemployment services industry, the welfare industry etc. When and if the congress and the US government finally figure out that many of their rules and regulations discourage business from hiring US workers, then we will get a better economy and with it, an even better health care system.

P. S. President Obama, Rome was not built in one day nor was it toppled in one day. What's your hurry and urgency on health care? You've got 3+ years to accomplish something. 70-80% of Americans like their current health care arrangements and are alarmed and disturbed by the prospects of changes you propose. Every President before had a full plate of issues just as you do. Why not focus on more demanding issues like Afghanistan, Iraq, the Middle East first and then slowly increase your focus on health care. Look at the Bill Clinton quote above. IF the USA managed to get by for 16 years without his calls for health care reform, maybe we can limp through another 16 months for better results. (no changes can be a very good result)

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