Showing posts with label health spending. Show all posts
Showing posts with label health spending. Show all posts

Sunday, August 16, 2009

The Health Care Debate Is Missing An Explation

The health care debate has become one of the most confusing and highly charged debates in recent memory. One main reason for this is that the administration has repeatedly left unanswered the basic question of how this plan will work. There is some good reason for this as there is no real concrete plan as of yet, just a bill that is in process which has been criticized as lengthy but not clear. However, the President has spoken about health care repeatedly in town halls, in press conferences, and has directly addressed the country, but has not once has he given a basic explanation on how his plan will work. Again today in a op-ed in the New York Times President Obama talks about why health care is needed. Yet no one is at a loss for why health reform is needed, they are at a loss for how health reform will work.

Cost is a major issue. The administration says that the plan will be funded approximately 1/3 by eliminating waste and inefficiencies. Yet CNN ran an article stating that little has been done in the current bill to address fraud. Tort reform has also been excluded, which means the waste that occurs through doctors practicing defensive medicine, and the underlying cost of malpractice insurance will not be dealt with. Digitizing medical records has been cited as a way to reduce costs. This would likely reduce costs down the road, but wouldn't there be an initial cost of moving records to a database, setting up a database (or other system) with the appropriate security and protocols? How will this happen? Who will establish this system and oversee its management and especially its security?

The reason so many people are nervous is that if the system is squeezed for savings it makes sense that care might suffer. Without the 'how' people are likely to jump to conclusions, and while proponents can complain that people 'are playing the politics of fear,' the reality is that some people are honestly afraid of what might happen to Medicare and Medicaid if reform means cuts. Granted some have come to ridiculous conclusions like Governor Palin's over-the-top remark about 'death panels.' However, the irony is that remark actually effected the debate because there was no other explanation out there about what 'end of life counseling' means. The administration is adamant that health reform pass, and pass quickly, but they don't appear to know what reforms they want or how they will work. How can the President expect the public to support reform when no one can explain it?

From Purple People Vote Independent Political Blog

Monday, June 8, 2009

What is the Cost of Obama's Health Care Plans

The Wall Street Journal is calling the Obama administration on its claims that its health care program will save money in the long-run. While Congressional Democrats work on drafting a health care bill (which includes taxing employer health insurance something highly criticized by the Democrats when presented in Senator McCain's health care plan) the Obama administration is starting to promote the plan. Yet they are doing so with some highly questionable numbers...

Excerpt from Obama's Health Cost Illusion
The main White House argument for health-care reform goes something like this: If we spend now on a hugely expensive new insurance program for the middle class, we can save later by reducing overall U.S. health spending. This "tastes great, less filling" theory could stand some scrutiny, not least because it is being used to rush through the greatest social spending program in American history.

What if this particular theory turns out to be a political illusion? What if the speculative cost savings never report for duty, while the federal balance sheet is still swamped with new social obligations that will be impossible to repeal? The only possible outcome will be the nationalization of U.S. health markets, which will mean that almost all care will be rationed by politics.

* * *
Since Medicare was created in 1965, U.S. health spending has risen about 2.7% faster than the economy and on current trend would hit 20% of GDP within a decade. Every public or private attempt to arrest this climb has failed: wage and price controls in the 1970s, the insurance industry's "voluntary effort" in the '80s, managed care in the '90s.

Now the White House -- especially budget chief Peter Orszag -- claims there is new cause for hope. The magic key is the dramatic variations in per patient health spending among U.S. regions. Often there is no relationship between spending and the quality of care, according to a vast body of academic research, most of it coming out of Dartmouth College. If the highest spending areas could be sanded down to the lowest spending areas, about 30% in "waste," or $700 billion each year, would be saved. More than enough to pay for ObamaCare. Or so the theory goes.


Obama Health Care