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Obama’s Unhealthy Reform

 

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The central cause of runaway health spending is clear. Hospitals and doctors are paid mostly on a fee-for-service basis and reimbursed by insurance, either private or governmental. The open-ended payment system encourages doctors and hospitals to provide more services—and patients to expect them. It also favors new medical technologies, which are made profitable by heavy use. Unfortunately, what pleases providers and patients individually hurts the nation as a whole.

That's the crux of the health-care dilemma, and Obama hasn't confronted it. His emphasis on controlling costs is cosmetic. The main aim of health-care "reform" being fashioned in Congress is to provide insurance to most of the 46 million uncovered Americans. This is popular and seems the moral thing to do. After all, hardly anyone wants to be without insurance. But the extra coverage might actually worsen the spending problem.

How much healthier today's uninsured would be with that coverage is unclear. They already receive health care—$116 billion worth in 2008, estimates Families USA, an advocacy group. Some is paid by the uninsured themselves (37 percent), some by government and charities (26 percent). The remaining "uncompensated care" is either absorbed by doctors and hospitals or shifted to higher private insurance premiums. Some uninsured would benefit from coverage, but others wouldn't. Either they're healthy (40 percent are between ages 18 and 34) or would get ineffective care.

The one certain consequence of expanding insurance coverage is that it would raise spending. When people have insurance, they use more health services. That's one reason Obama's campaign proposal was estimated to cost $1.2 trillion over a decade (the other reason is that the federal government would pick up some costs now paid by others). Indeed, the higher demand for health care might raise costs across the board, increasing both government spending and private premiums.

No doubt the health program that Congress fashions will counter this reality by including some provisions intended to cut costs ("bundled payments" to hospitals, "evidence-based guidelines," electronic recordkeeping). In the past, scattershot measures have barely affected health spending. What's needed is a fundamental remaking of the health-care sector -- a sweeping "restructuring"—that would overhaul fee-for-service payment and reduce the fragmentation of care.

The place to start would be costly Medicare, the nation's largest insurance program serving 45 million elderly and disabled. Of course, this would be unpopular, because it would disrupt delivery patterns and reimbursement practices. It's easier to pretend to be curbing health spending while expanding coverage and spending. Presidents have done that for decades, and it's why most health industries see "reform" as a good deal.


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Member Comments

  • Posted By: nakwa @ 08/11/2009 8:48:04 AM

    I've seen a clip on youtube and I don't know what to believe anymore

    http://www.youtube.com/watch?v=e62DGZPG0_0

  • Posted By: TZ192583 @ 06/26/2009 4:00:49 AM

    Highly appreciating the highest ranking of ???Marvelous Statesmanship??? as US President - Barack Obama, with outstandingly passionate, highly responsible & reserved comments without any interference in sovereignty of Iran, in News Conference of 21/6/2009, expressed witnessing concerns with ???Global-Eye??? i.e. a ???Human-Eye??? regarding on-going Regional Peace Policies leading to Global Peace Initiative & Sustainable International Development Process. Of course, these positive policies & moves for ???Development-For-All??? are visibly long-term & long-lasting and Historically recording of remarkable Obama-Administration under your ???foresighted??? Political Leadership of Peoples Government (of the peoples, by the peoples, for the peoples) of United state for ORGANIZING FOR AMERICA, and our new millennium approach & commitment to taking care for better environment on our Planet ??? of an ???un-biased??? Human Earth.

    Obviously, strong response by 60 to 77 % and much silent approvals of the rest must be inspiring on highly reserved, responsible and strong stand of your fabulous proceedings on national & international issues especially related with national, regional & international peace & development, Economic development, financial re-structuring and re-organizing with peoples??? friendly ???regulations??? for healthy pace-of-economy???, and especially Research-Oriented Educational development & Health Care Reforms. Consequently it???s national & international ethical responsibility of all who are more than 80% (in my opinion) approving & endorsing your foresighted Political Leadership & brilliant Statesmanship, to come forward joining hands National Spirit i.e. the call-of-time for ORGANIZING FOR AMERICA, with ???above-self??? & ???above-communities??? , 'above-group', 'above-party' & 'opposition just for opposition'.

    Health & Education are foundation of organizing of a nation. And any individual-level and 'national-or international-level' institutional sharing in these sectors is a 'productive-investment' for generations to reap benefits on long-term basis.

    In fact; Health, Education & Transport are such three sectors of Economy where highest %age of peoples can be adjusted to work, based on factual analytical studies. So,no doubt, it'll be a remarkable example for other countries especially for developing countries and African countries, what President Barack Obama is navigating, thriving & striving for.

    We must have to join hands with foresighted & leadership of President Barack Obama and dynamic Obama administration, also concentrating Health Care development policies to control health care high cost, insufficiency of Health care providers for a quality and affordable care as well.

  • Posted By: srfnewton @ 06/24/2009 10:52:28 AM

    The argument below that there is no right to health care because you can't force someone to provide it doesn't hold. Rights are what we as a nation decide they should be. When people talk about a "right" to healthcare, I think what's meant is that we *want* healthcare to be treated as a right, i.e. guaranteed -- within limits that we define. This is in the service of the common good. We make a collective decision precisely *not* to refuse to help, just as we decide it would be good to fund the military, the schools, the firefighters and the police. This is socialization of the financing of these services that we all need. In theory we could refuse to fund the police and you would say there is no right to police. OK. But that's not the kind of society we choose. Same goes for health care.

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