Archive for August, 2009

Perils of Obamacare: The Three Big Lies

August 20, 2009 at 10:05 pm · Filed under Uncategorized

In making his case for a government takeover of the US health-care system, President Obama is going far beyond the usual Washington truth-stretching.

Take a look at just a few of the most common claims:

“If you like your current health-care plan, you can keep it.” Even White House spokesmen have said that Obama’s oft-repeated pledge that you can keep your current insurance isn’t meant to be taken literally. The reality is that millions of Americans — perhaps most Americans — will be forced to change insurance plans.

First, the president supports an individual mandate — a requirement that every American buy health insurance. And not just any insurance but insurance that includes all the benefits government thinks you should have. That insurance could be more expensive or include benefits that people don’t want or are morally opposed to, such as abortion services.

And that doesn’t just affect those without insurance today. The bills now before Congress say that while you won’t be immediately forced to switch from your current insurance to a government-specified plan, you’ll have to switch to satisfy the government’s requirements if you lose your current insurance or want to change plans.

Plus, the president supports the creation of a government insurance program that would compete with private insurance. But because this ultimately would be subsidized by American taxpayers, the government plan could keep its premiums artificially low or offer extra benefit.

In the end, millions of Americans would be forced out of the insurance they have today and into the government plan. Businesses, in particular, would have every incentive to dump their workers into the public plan. The actuarial firm the Lewin Group estimates that as many as 118.5 million people, roughly two-thirds of those with insurance today, would be shifted from private to public coverage.

“You will pay less.” The Congressional Budget Office has made it clear that the reform plans now being debated will increase overall health-care costs, yet President Obama on Friday repeatedly said that his reform would reduce costs and save Americans money.

But no matter how many times he says it, the truth is you will pay more — much more — both in higher taxes and in higher premiums.

The final health-care bill is expected to cost more than $1 trillion over the next 10 years. That means much higher taxes, and not just for the wealthy.

If one totals up all the new taxes in the House Democratic health-reform bill — the income surtax, the penalties on businesses and individuals that fail to buy into the government health plan, as well as other fees and taxes — the cost to US taxpayers will top $800 billion. New York City will face marginal tax rates as high as 57 percent.

At a time of rising unemployment and economic stagnation, that is like throwing an anchor to a drowning man.

In addition, the new insurance regulations expected to be part of the final bill are likely to drive up insurance premiums. And, if the new government-run plan under-reimburses doctors and hospitals — as Medicare and Medicaid do — providers would be forced to recoup that lost income by shifting their costs to private insurance, driving up premiums. A study by the Council for Affordable Health Insurance estimates that the president’s proposals could increase premiums by 75 to 95 percent.

“Quality will improve.” Anyone who thinks a government takeover of the health-care system will improve quality of care has only to look at the health-care programs the government already runs: The Veterans Administration is overwhelmed with problems, Medicaid is notorious for providing poor quality at a high cost — and Medicare has huge gaps in coverage.

Worse, however, on Friday, Obama endorsed the creation of a government board with the power to dictate how your doctor practices medicine and all but endorsed the rationing prevalent in nationalized health-care systems around the world.

In short, when it comes to claims about the wondrous new world of government-run health care, a bit of skepticism might be in order.

This article appeared in the New York Post on July 20, 2009 Tanner, Michael D. “Perils of Obamacare: The Three Big Lies.” The Cato Institute. July 20, 2009. 18 Aug 2009 <http://www.cato.org/pub_display.php?pub_id=10367>

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When Out of Hope, Feign Change – Health Care Co-Ops A Public Option by another name

August 19, 2009 at 9:48 pm · Filed under ARRA, Care, Financial, Insurance, National, Plans, Stewardship, cobra, dental, health, quotes, vision ·Tagged , , , , , , , , ,

The Obama administration’s offer to drop a Medicare-like health insurance option for Americans under age 65 is neither a surprise nor a comfort, because it does nothing to change the administration’s dangerous plan for health reform. Rather, it is a tactic designed to change the debate – one that fits nicely within the administration’s broader strategy of deception.

On Sunday, Health and Human Services Secretary Kathleen Sebelius said that a new government program modeled on Medicare is “not the essential element” of reform, and that the president is open to a government-chartered “co-operative.”

It was inevitable that the administration would back away from a new Medicare-like program, the demands of left-wing House Democrats notwithstanding. For weeks, Sen. Kent Conrad (D-N.D.) has been telling the world that such a program would never pass the Senate: “There are not the votes in the Senate for the ‘public option,” Conrad recently told Fox News Sunday. “There never have been.” The only question was when the president would distance himself from the idea.

President Obama chose this moment because he is losing the debate on health reform, and he needs to change the subject. The administration no doubt hopes that the conversation will be about how the president has moderated his approach to health reform.

One problem: this offer doesn’t make the president’s health plan any more moderate. It is an empty gesture, because the administration can now push for Sen. Conrad’s “co-op” proposal as a substitute. And a government-chartered health care “co-operative” is simply another government health program.

The definition of a cooperative is a health plan governed by its enrollees. Since a government chartered co-op won’t have any enrollees at first, it will be governed by — guess who? — the Secretary of Health and Human Services, just like any other government program.

In June, Sebelius told Bloomberg.com, “You could theoretically design a co-op plan that had the same attributes as a public plan.” In July, President Obama himself told Time magazine, “I think in theory you can imagine a co-operative meeting that definition” of a “public option.”

On a practical level, it makes no difference whether a new program adopts a “co-operative” model or any other. The government possesses so many tools for subsidizing its own program and increasing costs for private insurers — and has such a long history of subsidizing and protecting favored enterprises — that unfair advantages are inevitable.

So even if Democrats promise that someday the new program will become a co-op, what they mean is: “We’re going to create that new government health program, just as we intended all along. But we will turn it over to the members in, oh, five years or so. We promise.”

That makes Sebelius’s announcement yet another cynical ploy to achieve health reform by deceiving the public.

President Obama keeps saying you’ll be able to keep your current health plan, even though the Congressional Budget Office says that isn’t true. The president says a new government program wouldn’t drive private insurers out of business, even though his allies expect it to do just that. He says he wants choice and competition, yet proposes insurance regulations that would drive most private plans out of existence. He doesn’t want the government to take over the health sector, just like he didn’t want to take over General Motors. The administration pretends to distance itself from a new government program by embracing…another new government program.

The only administration sympathizer who isn’t a master of deception may be New York Times columnist Paul Krugman, who describes Obamacare this way: “Basically, it’s a plan to Swissify America.” I suppose there’s a reason Paul Krugman is not the White House press secretary.

The president’s approach to health care reform hasn’t changed at all. All he has done is tried to distract attention from how dangerous and unpopular his approach really is.

This article appeared in TownHall.com on August 17, 2009.
Cannon, Michael F. “When Out of Hope, Feign Change.” The Cato Institute. August 17, 2009. 18 Aug 2009 <http://www.cato.org/pub_display.php?pub_id=10464>

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What Is the Free-Market Approach to Health Care Reform?

August 18, 2009 at 9:46 pm · Filed under ARRA, Business, Care, Insurance, National, Plans, cobra, health, quotes, vision ·Tagged , , ,

President Obama is right when he says that the U.S. health care system needs reform. Although this country provides the finest care in the world, our health care system has serious problems. It costs too much. Too many people lack health insurance. And quality can be uneven.

But a government takeover of the health care system, as proposed by the president and some in Congress, would be a step in the wrong direction. Instead, we should pursue a uniquely American solution, one that builds on free markets, competition and choice.

1. Let individuals control their health care dollars, and free them to choose from a wide variety of health plans and providers.
2. Move away from a health care system dominated by employer-provided health insurance. Health insurance should be personal and portable, controlled by individuals themselves rather than government or an employer. Employment-based insurance hides much of the true cost of health care to consumers, thereby encouraging over-consumption. It also limits consumer choice, since employers get final say over what type of insurance a worker will receive. It means people who don’t receive insurance through work are put at a significant and costly disadvantage. And, of course, it means that if you lose your job, you are likely to end up uninsured as well.
3. Changing from employer to individual insurance requires changing the tax treatment of health insurance. The current system excludes the value of employer-provided insurance from a worker’s taxable income. However, a worker purchasing health insurance on their own must do so with after-tax dollars. This provides a significant tilt towards employer-provided insurance, which should be reversed. Workers should receive a standard deduction, a tax credit, or, better still, large Health Savings Accounts (HSAs) for the purchase of health insurance, regardless of whether they receive it through their job or purchase it on their own.
4. We need to increase competition among both insurers and health providers. People should be allowed to purchase health insurance across state lines. One study estimated that that adjustment alone could cover 17 million uninsured Americans without costing taxpayers a dime.
5. We also need to rethink medical licensing laws to encourage greater competition among providers. Nurse practitioners, physician assistants, midwives, and other non-physician practitioners should have far greater ability to treat patients. Doctors and other health professionals should be able to take their licenses from state to state. We should also be encouraging innovations in delivery such as medical clinics in retail outlets.
6. Congress should give Medicare enrollees a voucher, let them choose any health plan on the market, and let them keep the savings if they choose an economical plan. Medicare could even give larger vouchers to the poor and sick to ensure they could afford coverage.
7. The expansion of “health status insurance” would protect many of those with preexisting conditions. States may also wish to experiment with high risk pools to ensure coverage for those with high cost medical conditions.

find out more at http://healthcare.cato.org
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