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Thursday, June 25, 2009
A Whimper, Not a Bang
Posted by: Carol Platt Liebau at 12:09 PM

ABC's infomercial for Obamacare drew only anemic ratings; that could have been either because the American public knows a fixed game when it sees one (no opposing points of view allowed!), or because there is growing fatigue with "all Obama, all the time."

One falsehood that should be quickly contradicted is Obama's misleading statements about a government option's ability to "cut costs," reported by ABC as follows:

The president rebuffed [the argument that a government plan would have an unfair competitive advantage against the private sector], arguing that "we can set up a public option where they're collecting premiums just like any private insurer and doctors can collect rates," but because the public plan will have lower administrative costs "we can keep them [private insurance companies] honest."

Obama said he didn't understand those advocates of the free market who constantly say the private sector can do things better and are yet worried about this plan.

Question: When, ever, did the government -- unionized and upwardly funded into perpetuity -- ever have lower administrative costs than the private sector?  Please.  If you believe that, I'll best you're also best friends with the Tooth Fairy.

But Obama's answer is disingenuous more generally. 

Government does have an unfair advantage over the private sector -- Medicare and Medicaid don't pay health costs as dictated by the market.  Rather, the government arbitrarily sets the rates at which health care providers will be reimbursed by the government.  Those rates regularly fall short of the actual cost of the services provided -- and the difference is made up in part by those of us with private insurance paying a little more.

As a recent column of mine noted, if an under-paying government option is created, it will kill private competitors because it won't have truly have to compete; it will simply pay what it wants -- a luxury private insurers won't have.  Costs for those of us with private insurance will grow so prohibitive that pretty soon, private options will be gone.

And once a government program -- not paying what it costs -- exists but there are no more Americans covered by private insurance to help subsidize it, there will only be one way left to balance the demand for services and the supply of them: Government-mandated (and controlled) rationing.

Interestingly, the President declined to commit himself and his own family to the tender care of the government option.  No doubt many will criticize him for that.  But I don't fault him for that at all; like him, I would do whatever I could to get the best care for myself or my family.  Furthermore, in the real world (as opposed to utopia), it's naive to believe that there will ever be true levelling to the point where everyone will receive the same quality of care no matter who they are.

The question is by what criteria will one's quality of care be determined.  And what I do fault the President for is trying to take away a system that, at least, lets those who can pay to secure better care to do so.  If a "government option" is all there is, the health care market won't run on free enterprise principles.  It will run on government principles -- where only the politicians will get the kind of care that regular Americans, who are willing and able to pay for it, are now able to receive.

In short, the President's response made it clear that Obamacare will not end the reality that some will receive better health care than others.  Rather, it will simply mean that the politically connected -- rather than those able and willing to pay -- will have the advantage.  And that, to me, sounds more like a Soviet model than -- to use the President's own words -- a "uniquely American" one.



View in ascending order View in descending order
sdf writes: Thursday, June, 25, 2009 12:37 PM
No HC reform
Without a strong public option, according to the Congressional Tri-Caucus (Black, Hispanic, and Asian Pacific). 120 House votes that require a public plan.

http://cpc.grijalva.house.gov/index.cfm?ContentID=446&Paren tID=0&SectionID=66&SectionTree=66&lnk=b&ItemID=444

"We cannot move forward without a strong public option," stated Congressman Raul M. Grijalva (AZ-07), Co-chair of the Congressional Progressive Caucus. "Health care costs are skyrocketing for everyone, and our health is worsening. It is time that we attain health care reform that prioritizes and alleviates the financial burden on families."
Dread writes: Thursday, June, 25, 2009 12:42 PM
Rationing trope
Can we drop this overly simplistic nonsense, please?

Health Care rationing exists now. Whether it is done through cost (i.e. those who cannot afford go without), whether it is done via the damnable practice of insurance companies dropping people who get catastrophically and chronically ill, or whether it is through pre-existing condition waiting periods.

You can argue that the status quo is more efficient with its rationing or you can argue that the status quo is more fair in its rationing that government would be, but please do not try and make a rather stupid argument that rationing does not exist now. It defies economics and the entire idea of scarcity to do so.
maggie  writes: Thursday, June, 25, 2009 12:45 PM
the uniquely American model
is to say no to anything the government forces on us! We have the freedom to chose everything that effects our families lives. Obamacare and the other policies already passed and those still being written are against that model.

It's all about the POWER !
COLDPLAYLOVER writes: Thursday, June, 25, 2009 12:50 PM
Carol doesn't care about reality
she cares about politics. Will opposing Obama's plans win the far right votes? Will she ever get even for him succeeding more than she did out of the same law school class? All these little nitty things.

Most people know that care is rationed. Most people think that a hip replacement for a terminal elderly person would be a waste, and wouldn't want to fund that surgery with their own inheritance money for granny, but they sure as heck want to complain because this is Obama derangement syndrome.
COLDPLAYLOVER writes: Thursday, June, 25, 2009 12:51 PM
and that ratings thing?
Who wants to watch about healthcare when you can watch Jon Stewart make fun of Sanford.
Retired Lady writes: Thursday, June, 25, 2009 1:10 PM
The incredible range of stupidity as
proposed by the remarks of the drooling drones is monumental. It would be poetic justice that they would have to suffer under obamacare; but, unfortunately, so would we! Isn't it interesting that the community organizer won't commit either himself or his family to obamacare yet he wants the nation to "do as he says not as he does!" Just like sending his girls to a private school rather than the pit that is known as the public school system of Wash., DC, the hypocrisy of this boob is so apparent but, once again the drooling drones can't quite see it! This is the "something for nothing" crowd that really believe the boar's ear is a silk purse!
Seadog writes: Thursday, June, 25, 2009 1:12 PM
Senator Bacus(?) stated this
morning that congress had "options" and that they had found enough money to pay for the Health Care Plan. Believe his figures are predicated on the plan costing around one trillion dollars, which is a false figure accoding to most studies.

The country has a massive debt, so how is this possible without borrowing or printing more Yankee Green Dollars?
Big Sky Cowboy writes: Thursday, June, 25, 2009 1:16 PM
ColdPlay
Sounds like you are not too interested to see what kind of healthcare you will end up with.Or you feel it will be great because obama said so.
The Plumber writes: Thursday, June, 25, 2009 1:40 PM
Exactly wrong
Want greater access, less expense, and more options? Quit subsidizing the healthcare industry.

There hasn't been a free market in healthcare for 40 years.
COLDPLAYLOVER writes: Thursday, June, 25, 2009 1:45 PM
Big Sky
I know what kind of health care system we have now, that's why I have hope for anything Obama would suggest. Anything is better than our current system. We have a family policy, our own, portable, health savings plan, all that. It is still costly and not very efficient. My husband had what he thought was a heart attack (it was a stress induced panic attack after a scare with one of our children)--$2200 at the ER. What our 'share' will be remains to be determined, but that's nuts. NUTS.

There are many models for coverage--Obama is looking at them all. Most Europeans do not complain about their coverage--that 'delay' thing is no different than here. My sister in Miami needed a base colonoscopy, waited 6 weeks for the 'consultation', another 2 weeks for the test.

How about we be so afraid? The insurance clearing house has every piece of info on you anyway.
KayAnn writes: Thursday, June, 25, 2009 1:47 PM
This tells us something.
The fact that Obama's special didn't draw as many viewers as ABC would have hoped speaks more about the viewers than I'd think Carol would be willing to address. Are they as "concerned" about Obama's proposals as Charles kept trying to suggest? Seems not. Consider this, Carol: Polls now indicate that well over 3/4s of Americans are on board with the Public Option. That's a mandate, if you ask me, for going with the public option, and watching Obama tell us precisely what we already have decided on is not nearly as exciting as watching survivors in a Japanese game show (ABC's ridiculous idea of a lead-in).

What we really saw last night was the President speaking to Republicans who have caught in the handwringing and fearmongering provided by their elected officials and radio shock jocks. Too bad you didn't tune in.
vladimir estragon writes: Thursday, June, 25, 2009 1:53 PM
Huh?
"Question: When, ever, did the government -- unionized and upwardly funded into perpetuity -- ever have lower administrative costs than the private sector?"

The government doesn't have to show a profit every quarter, do they?
eddie too writes: Thursday, June, 25, 2009 1:55 PM
If the government is sooo interested
in controlling healthcare costs and in giving everyone healthcare, why do not they just use a declining scale (based on income) to subsidize the costs of private insurance.

The U.S. government currently spends approximately one trillion dollars a year just for the medicare and medicaid programs. That is equal to $3333.00 per every man, woman and child in the U.S.

Just using the current medicare and medicaid funding, the government could offer the 50% (approximately 75 million households) of Americans who pay no taxes vouchers to purchase private health insurance. These vouchers could be $12,000 per year or $1000 per month for a total annual cost of 900 billion dollars. Those who pay taxes could be given a declining tax credit that transforms to a partial tax credit and partial tax deduction the closer one's income gets to the median income. All taxpayers who have income at or above the median income could get a tax deduction for the total cost of their private insurance.

No increase costs for the government, everybody has health insurance and the private insurers must compete for customers.

The added steps that must be taken for such a simplistic change to our system is that: 1) health insurers would not be allowed to charge one person more than another for the same coverage; and 2) group plans would be prohibited, health insurance plans would only be available for single coverage, couple coverage or family coverage.

These congressional critters are blowing smoke up our rear ends to please their special interst and elitist supporters.

Their is absolutely no need for the government to be involved in regulating health care decisions between doctors and patients.
Big Sky Cowboy writes: Thursday, June, 25, 2009 2:01 PM
ColdPlay
My wife's twin has been in England for 25 years,she compares the healthcare there with what she had here in the states for over 30 years, no contest, also the expertise of medical providers there is lacking from here.
Exeye writes: Thursday, June, 25, 2009 2:24 PM
Don't kid yourselves
Baracula doesn't care one whit about your health. He does very much care about controlling your life. If he has the power to deny you a life-saving treatment, what are you willing to do to get it from him?
Big Sky Cowboy writes: Thursday, June, 25, 2009 2:50 PM
Exeye
But if you belong to a union, your benefits won't get taxed like the rest of us,and obama will try to get his friends from the unions, the same care he and Michelle and the kids get,that is tons better than what the rest of us get,sounds great,BS.
Rev Red Dog writes: Thursday, June, 25, 2009 3:14 PM
Fake polls, No "mandate"
http://www.billoreilly.com/newslettercolumn?pid=26794

"Unfortunately, the vision of a free and honest press is fast disappearing in America. Let me give you yet another vivid example. This week a poll by the New York Times asked, "Would you be willing to pay higher taxes so that all Americans have health insurance... ?"

57% said they were willing,

37% not willing, and

6% said "no opinion."

So, according to the Times, overwhelmingly, Americans want government-financed health care. That's what the poll says, right?

But if you read all the way down to the bottom of the poll, you see another question. "Who did you vote for [in the presidential election]?"

48% said Obama; just

25% answered McCain. The rest,

19%, did not vote.

Wow, that's almost two to one for Obama.

But the popular vote tally in the election last November was 53% for Barack Obama, and 46% for John McCain. Wait a minute. That's a lot closer than two to one. So apparently the New York Times skewed the polling by offering the questions to mostly Obama voters. I'm shocked they supported higher taxes for federal health care, aren't you?

This kind of dishonesty is not uncommon in the media. The Times says its poll is "scientific." Sure it is—scientifically stacking the deck...

...By the way, CBS News also had its name on that poll."
RASHUM writes: Thursday, June, 25, 2009 3:15 PM
KayAnn - nice try
The last Rasmussen poll 6/12-6/13 of 1000 adults - Would it be a good idea to set up a government health insurance company to compete with private health insurance companies? The results were split 41% said No, 41% said yes and 18% were not sure.

That poll also showed:

Just 32% of Americans believe that the addition of a public sector insurance option would reduce the cost of health care. Forty percent (40%) say it would not.

Sixty-three percent (63%) say it’s likely that a government insurance company would lose money and require taxpayer subsidies. Just 20% say that’s not likely.

Forty-nine percent (49%) of Americans believe private insurance companies will provide better service and more choice than the government option. Thirty-four percent (34%) hold the opposite view.
SJA writes: Thursday, June, 25, 2009 3:19 PM
Rev Red Dog
Yes interesting how they chose the people for the poll. Nice reporting.
The Plumber writes: Thursday, June, 25, 2009 4:28 PM
Rev Red Dog
And 60 percent of those Obama voters thought that the GOP controlled Congress in '08.

Thank goodness the Constitution limits the power of the Federal government, huh? Otherwise we'd have every idiotic idea the nanny-staters come up with being passed by the statists in Congress, and then signed by some idiot president. (/sarc)
chris writes: Thursday, June, 25, 2009 5:12 PM
QUESTION
SO WITH GOVERNMENT RUN HEALTHCARE EQUALS DOCTORS WORKING FOR THE GOVERNMENT. SO WE CAN SUE THE GOVERNMENT VIA THE DOCTOR FOR PETTY THINGS AND GET ALL MY TAXES BACK THAT THIS IS GOING TO COST ME. OH MY I HAVE A BRUISE FROM THIS SURGERY I JUST HAD. THANK YOU FOR THE MONEY. THANK GOODNESS TORT REFORM WAS NOT PART OF THE DEAL
vladimir estragon writes: Thursday, June, 25, 2009 5:47 PM
Rev Red Dog
"So apparently the New York Times skewed the polling by offering the questions to mostly Obama voters."

You should know that pollsters have known for some time that asking people who they voted for yields more and more unreliable results the longer after election day you ask. Kennedy beat Nixon by one of the smallest margins in history, but after he was assassinated, polls "showed" that over 90% of the people had voted for him.

Specifically, more people will say they voted for the candidate who won, even if they didn't, than the opposite. So that NYT poll is only skewed if you believe the Obama numbers, which you shouldn't.
NOTW writes: Thursday, June, 25, 2009 8:18 PM
Non Compete Issues
Private Insurance will have two strikes against it with a Govt option;

The Govt doesnt have to worry about showing a profit (sadly).

The cost of Capitol a Govt funded program borrows money at is 0%.

If Obama or any of his teams of experts had spent any time in the private sector, they'd get it and he would understand what they dont "get"

Btw, over 100 of our Congressmen been directly or indirectly involved in baknrupting businesses. And quite a few have such a bad FICO score they wouldnt qualify for a credit card...these are the people in charge of this great medical reform??
vladimir estragon writes: Friday, June, 26, 2009 4:06 PM
More deception
"ABC's infomercial for Obamacare drew only anemic ratings."

Well, you can hardly expect an interview with the president on health care policy to be the Super Bowl. But it was ABC's best showing in the 10 pm time slot for some time, and when it went past 11:30, it had more viewers than either David Letterman or Conan O'Brien. Not exactly "anemic."
Elizabeth writes: Wednesday, July, 01, 2009 3:00 AM
RE: A Whimper, Not A Bang
You are grossly misinformed how private health insurance companies differ from Medicare when it comes to the rates paid to physicians. It is a fact that IN MANY PARTS OF THE COUNTRY INSURANCE COMPANIES PAY DOCTORS EVEN LESS THAN MEDICARE.

And even when the pay is slightly higher, they always tie their rate schedules to Medicare fees, which allows them to reduce their reimbursement rates to the lowest possible levels. (They skim 40 cents on average off the top of every health care dollar.) In truth neither Medicare nor the private companies pay primary care physicians well enough to cover all their costs and allow for a decent profit, which is why there are so very few primary care doctors.
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