[Report Abuse]
[Login to Blog] Funkentelecky's Blog
‘45 Million Americans’Who Are Those Guys?, Part 3
SFC (RET) U.S. Army Combat Veteran, Patriot, Conservative

Take Me To Post Comment Form

"President Barack Obama says that he can pay for his goal to provide health care insurance for every American without it. Why isn't that good enough for you?"

Elder: Yes, the President says that he can "pay for" his goal of providing health insurance for every American without it. Care to bet on that?

When government proposes a program, the ultimate price tag inevitably exceeds projections. In "Why Government Doesn't Work," libertarian Harry Browne wrote: "Most older people now find it harder to get adequate medical service. Naturally, the government points to the higher costs and shortages as proof that the elderly would be lost without Medicare — and that government should be even more deeply involved. When Medicare was set up in 1965, the politicians projected its cost in 1990 to be $3 billion — which is equivalent to $12 billion when adjusted for inflation to 1990 dollars. The actual cost in 1990 was $98 billion — eight times as much."

FREE SUBSCRIPTION TO INFLUENTIAL NEWSLETTER
Every weekday NewsAndOpinion.com publishes what many in the media and Washington consider "must-reading". HUNDREDS of columnists and cartoonists regularly appear. Sign up for the daily update. It's free. Just click here.


Congress, from the outset, placed Medicare on autopilot because of a growing, aging and longer-living elderly population. Congress, from time to time, attempts to "rein in" increased costs by imposing fixed reimbursement schedules. This simply creates an incentive on the part of doctors and hospitals to schedule a lot of unnecessary tests or to "pingpong" patients from specialist to specialist in order to evade the artificial limits. This also forces doctors and hospitals to charge more from private carriers to offset the low reimbursement rates provided by Medicare.

Everybody gets hurt — the elderly because the medical profession becomes less efficient, innovative and cost-effective, and the non-elderly because practitioners charge them more to offset the lower reimbursement rates provided by the government.

"We need to require all employers to provide health insurance."

Elder: We end up paying more, not less. During World War II, Congress imposed wage freezes. Business people who wished to attract employees had little recourse but to offer non-cash benefits. The government, recognizing business people's "plight," allowed business to deduct the cost of health insurance as a business expense. This put, for the first time, something between doctor and patient, distorting the traditional fee-for-service system, used so successfully up until then. It also created the incentive to get your medical care through your employer rather than pay for it directly.

I once lived in a large apartment complex that included utilities paid by the landlord. During hot summer months or cold winter months in my previous apartment — where I paid for utilities — I turned the thermostat off when I left the apartment and put on the heat or air when I returned. Once I moved into the "utilities-included" apartment, I left my heat and air on all day, thus ensuring a perfect climate when I came home — sometimes as long as 12 hours later.

Now, I knew that somehow I paid, but the cost would be distributed over all the tenants in the building. So the conscientious tenant who cut off his or her air subsidized my carefree use of utilities. Eventually, we all pay, but the effect becomes gradual and diffused over a number of people who have little incentive to "conserve."

This applies to employer-provided insurance. Employees have less incentive to refrain from seeing doctors for minor reasons, less incentive to watch and manage their own health, and no incentive to cost compare among competing insurers and health care providers.

"I'm a supporter of free markets and competition, but that doesn't apply to medicine. Improved technology and research costs just drive the price of medicine up." Elder: New technology — in most any field — initially costs a lot. Consider the cost years ago of computers and calculators versus what we pay today for equipment and applications far faster, easier and more powerful. Remember the price of calculators 30 years ago? Today they are so cheap some outlets give them away as gifts — loss leaders to get you into the store.

Government-imposed rationing sacrifices quality and innovation while imposing long wait times. But you cannot control costs without removing the incentive to improve and innovate. How many medical-care breakthroughs occur in Canada? How many new drugs to improve patient outcome come from Canada? Without the profit incentive, you get fewer entrepreneurs and fewer investment dollars because you've diminished the likelihood of reward.

Want efficiency? A friend of mine who serves on the board of a hospital in Ontario recently wrote: "We have actually had to send money back to the government because the surgeries — scheduled months earlier — didn't occur because patients went to the U.S. for treatment instead. Funding is specific to some procedures, and if not used, the money is sent back. Right now we are losing the surgery money because we have a bed shortage for folks who can't return home because of the level of care they need, but there are no facilities for them to transfer to. Why, you ask? Government regulations make it next to impossible for private people to make a profit. And so the vicious circle continues."

Welcome to ObamaCare.

http://www.jewishworldreview.com/cols/elder070209.php3



Latest Activity: Nov 15, 2013 at 6:44 PM


Bookmark and Share
Forward This Blog
Print Blog
More Blogs by Funkentelecky
Send Funkentelecky a Message
Report Abuse


Blog has been viewed (512) times.


Log In to post comments.

Previous blog entries by Funkentelecky
 
Who Pays What in Taxes?
December 22, 2017
Politicians exploit public ignorance. Few areas of public ignorance provide as many opportunities for political demagoguery as taxation. Today some politicians argue that the rich must pay their fair share and label the proposed changes in tax law as tax cuts for the rich. Let's look at who pays what, ...
Read More »
 
Black-on-Black Racism at Elite Campuses
November 13, 2017
A Rasmussen poll taken in 2013 asked American adults, "Are most white Americans racist?" "Are most Hispanic Americans racist?" and "Are most black Americans racist?" Of the three groups, the winner was blacks. Thirty-seven percent said most blacks were racist; 18 percent felt most Hispanics were racist; and 15 percent ...
Read More »
 
The Naked Communist
November 06, 2017
THE NAKED COMMUNIST: 45 COMMUNIST GOALS On Jan. 10, 1963, Congressman Albert S. Herlong Jr. of Florida read a list of 45 Communist goals into the Congressional Record. The list was derived from researcher Cleon Skousen’s book “The Naked Communist.” These principles are well worth revisiting today in order to ...
Read More »
 
Now I Have Had Enough
October 19, 2017
Published on Sep 25, 2017 Now I Have Had Enough - Brandon Tatum Destroys the NFL Brandon Tatum is a police officer in Tucson, Arizona, and he is a former college football player for the University of Arizona. https://www.youtube.com/watch?v=kEcYDa7r4-I
Read More »
 
It's Official: Democrats Are The Extremists Today
October 17, 2017
Partisanship: Everyone knows that the country is more politically polarized than ever, but most don't know why. Data from the highly respected Pew Research Center provides a definitive answer. It's because Democrats have moved sharply to the extreme left. The Pew report — titled "The Partisan Divide on Political Values ...
Read More »
 
[View More Blogs...]





 
Powered by
Morris Technology