Wednesday, August 19, 2009

EVEN USA TODAY makes sense on Health Care. By Geniusofespair

The National Rag, USA Today, has a good editorial on Health Care reform, and here it is:

Our view on health care: Dispute over ‘public option’ veers into fantasyland
Here’s a little secret: Government already pays more than insurers.

Depending on who you listen to, a central feature of President Obama's health care overhaul — a government-run insurance plan known as the "public option" — is either dead or on life support. That it is in trouble at all reflects the Alice-in-Wonderland nature of the medical discussion.


In health care politics, down is up, right is left and the sun rises each morning in the West. When lawmakers try to be frugal with taxpayers' money, their actions are labeled as Big Government intruding. When they try to bring some compassion to end-of-life issues, uncontroversial until it was included in a medical proposal, they're accused of promoting euthanasia. And when they ignore the unsustainable amounts of public money pouring into a broken system, they call themselves pro-market.


This last illusion was illustrated in 2003 when Congress, then under Republican control, passed a Medicare drug benefit estimated to cost about $500 billion over a decade. Even though every dime was taxpayers' money, the government was barred from using its clout to negotiate the most advantageous deals with pharmaceutical companies. Borrowing trillions from future generations was OK. Trying to get taxpayers the most for their money was not.
Something similar is happening with the public option. This entirely voluntary plan — that's why it's called an "option" — would bring some cost control to health care by applying government's purchasing power as leverage against medical providers and insurance companies. Yet the idea is cynically cast as a "government takeover of health care" — rhetoric worthy of the Mad Hatter.

Even if tens of millions of people chose the public option, which is possible in some circumstances, tens of millions more would retain private insurance, which would get cheaper. And that could happen only if the program was wildly popular.

This is something to fear?

The dirty secret of our health care system is that it already is dependent on government or, more precisely, government waste. More than 46% of all medical service in the USA, about $1 trillion annually, is paid for directly by taxpayers. Private insurers cover 42%, and the remainder is paid out of pocket. In addition to what government pays directly, it pumps in more than $200 billion a year in tax subsidies.

If Washington does nothing, this government role will only get a lot bigger as the population ages, providers hike prices and private coverage becomes increasingly unaffordable.

The do-nothing critics avoid this reality through the strange logic that says government's presence is harmless as long as it is dumb. It can mortgage the future. It can bankrupt itself. If everyone just closes his eyes, maybe no one will notice.

Senators opposed to the public option are promoting non-profit state cooperatives as an alternative. But such co-ops are likely to be too small, and take too long to establish, to provide competition to private insurers.

The public option is no boogeyman. It is a way to save taxpayers money while empowering people to make the choices Congress cannot. Without meaningful efforts to control costs, health care overhaul will simply turn into another exercise in sending trillions of dollars down the rabbit hole.

Posted at 12:22 AM/ET, August 19, 2009 in USA TODAY editorial |

12 comments:

Anonymous said...

You know - I don't see Republicans offering tangible solutions to getting people health coverage. I have crap insurance from my employer and still get stuck with huge bills I can't afford if even I need even one test. Private industry ISNT working - that much we know. So can we at least TRY some alternatives? Umm maybe the senators who vote against it will be willing to donate their government funded health coverage to someone who needs it.

bubbleRefuge said...

The real problem -the big picture- that only a few people in the world understand in this debate and in the economic problems in general is that policy makers + mainstream media do not understand government finance.

Here are some (not all) key misunderstood points.

1) The Federal government can pay for anything it wants that is priced in USD.
2) Taxes do not 'fund' government. Government 'funds' tax payers.
3) Government debt -ie Treasury securities- do not finance government spending. They are a tool of monetary policy used to maintain short term interest rates targets and nothing more.

As Greenspan once accurately stated. (I paraphrase) Its not a question of finding money to fund the goods and services the economy needs, its a question of the goods of services being there in the first place.

Anonymous said...

The government now owns two car companies that are bankrupt, USPS is bankrupt, Social Security is a Ponzi scheme, Medicare is bankrupt, banks and insurance companies were bailed out and now government owns toxic assets, Fannie Mae, Freddie Mac are all bankrupt. What is it about the government running a GOVERNMENT OPTION Healthcare company that makes you think it will be better than everything else they f--- up?

This bogus healthcare reform is to keep DEMS in power so they have a beholding constituency, PERIOD, END OF STORY. I know that because there is no tort reform and nobody is speaking to limit awards and Obama wants to raid what is current medicare and insure every drifter in society as the elderly and disabled are sent packing by CONSULTANTS. Get real.

Anonymous said...

There are several flaws in the comment about how the government can do nothing. The fact is Social Security funds have been spent by congress in their regular budgets for decades instead of putting them in trust for the future.
Ask any medicare recipient and they all seem to like the way it is run, and don't want to change it.
Several of the banks that were bailed out have paid back their loans with interest.
The economic meltdown was not caused by the government, but by private enterprise that was suppose to self regulate itself, but instead put the entire country in a tailspin.
The USPS, is run as a private company as were Fanny Mae and Freddy Mac, before the government takeover.
These Republican talking points are pretty stale. If you think the current health care system run by large insurance companies and the drug industry is givng good health care at a reasonable price, you are not looking at the facts.

Anonymous said...

Agree with last comment...

Anonymous said...

http://www.miamiherald.com/289/story/1193444.html?storylink=pd

I think this article speaks volumes about the Health Care debate! When a bill is so bad, pay millions to your friends (and let moveone.org fund some rhetoric too).

Anonymous said...

Not quite: Can you say Cheney and Haliburton. It is always the pot calling the kettle black with you guys. This is peanuts compared to what Republican policies benefitted.

Anonymous said...

So then by the logic exhibited by the left, Fannie Mae and Freddie Mac should not have investigated toxic loans prior to purchasing them from the lenders? You guys will say anything to make government appear to be working.

Now we have O trying to run an entity that is 1/6th of the GDP, when has he run anything? Axelrod stands to gain millions and Gibbs lies his ass off on a daily basis. This WH is more corrupt than any, transparency, look it up.

Anonymous said...

I agree last anon! Thank you for pointing out the obvious.

Anonymous said...

Fannie and Freddy were PRIVATE companies when the loans were purchased. How can the Federal Government be the guilty party when this occured before the takeover?
The false talking points above are trying to stop a real dialog of the issues.

Anonymous said...

Because Clinton and his willing Congress including the GOP relaxed the rules so more people of modest means could become homeowners. This put pressure on Fannie and Freddie to keep the BUBBLE inflated. Burst took place in 2007 so blame Bush, the seeds were planted in the mid 90's.

Cato said...

And Now for some reasonable non partisan commentary, I'll leave the name calling and mudslinging to all you partisans

http://www.freep.com/article/20090819/OPINION05/90819047/1231/Truth-about-death-panels

I'm not enamored with this rag but this commentary is pretty insightful.

http://www.nypost.com/seven/08202009/postopinion/opedcolumnists/obamacares_bait__switch_185397.htm