There’s no surprise here; Obama’s proposals for health care upheaval will come with a hefty price tag [emphasis mine]:
The upfront tab could reach $1.2 trillion to $1.5 trillion over 10 years, while expected savings from wringing waste and inefficiency from the health care system may take longer to show.
Details of the health legislation have not been written, but the broad outlines of the overhaul are known. Economists and other experts say the $634 billion that Obama’s budget sets aside for health care will pay perhaps half the cost.
Obama is hoping the Senate comes up with a bipartisan compromise that would give him political cover for disagreeable decisions to raise more money, such as taxing some health insurance benefits. In the 2008 campaign, Obama went after his Republican presidential rival, Arizona Sen. John McCain, for proposing a large-scale version of that idea…
The U.S. spends about $2.5 trillion a year on health care…Experts estimate that at least one-third of that spending goes for services that provide little or no benefit to patients. So theoretically, there’s enough money in the system to cover everybody, including an estimated 50 million uninsured.
But one person’s wasteful spending is someone else’s bread and butter.
The office visits, tests, procedures and medications that the experts question represent a lot of money for doctors, hospitals, drug companies and other service providers. Dialing them back won’t be easy. Providers will resist. Patients might complain their care is getting rationed.
So let’s see: costs will go up rather than down at first. Obama wants his support to be bipartisan (after saying “screw you” to Republicans on almost everything else) in order to provide him political cover for doing what he reviled McCain for proposing. Oh, and there will be rationing, but they’ll try to convince us otherwise.
The simple truth is that the reason universal health care hasn’t passed is that it is very expensive, and rationing is inevitable (see this for an earlier post about the health care dilemma).
In related news, the NY Times reports today that the health care industry is promising to voluntarily cut costs in an effort to stave off price constraints in the new national health care (the signers of the pledge are officials of the Advanced Medical Technology Association, the American Hospital Association, the American Medical Association, America’s Health Insurance Plans, the Pharmaceutical Research and Manufacturers of America, and the Service Employees International Union).
Let’s see what’s planned:
…large amounts [of money] could be saved by aggressive efforts to prevent obesity, coordinate care, manage chronic illnesses and curtail unnecessary tests and procedures; by standardizing insurance claim forms; and by increasing the use of information technology, like electronic medical records.
I’ve got no particular beef with the last two on the list, or with “coordinate care” or “manage chronic illness” (and aren’t we already trying to do those things?). But “aggressive efforts to prevent obesity?” Good luck on that one. And what does it even mean, especially in terms of civil liberties? And how will those efforts be successful when it is well known that it is extraordinarily difficult to lose weight and keep it off, no matter how hard people try or what method they use?
Then there’s the little phrase “curtail unnecessary tests and procedures.” That, of course, is where rationing comes in. Who’s to decide, and what criteria will be used? I don’t exactly trust government to make these decisions in my best interest. Do you?



