Obama’s crazy healthcare plan

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Jim Simpson
Published: April 10, 2008

This week, while waiting in my doctor’s office, I came across a trade magazine called Modern Healthcare. In this particular issue, July 2/9, 2007, Senator Barack Obama wrote an opinion piece regarding his proposal for a solution to our healthcare “crisis.” The column was titled “My cure for an ailing system.”

In the very first paragraph he indicates that “an increasing number of individuals” cannot afford healthcare. This followed a testament that our system has the “best medical technology” and that “investment in scientific research has paid off handsomely.” Very interesting. With most other fields, an increase in technology actually results in a drop in price while improvements continually provide more effective and efficient solutions. When I purchased my first 286 12MHz personal computer from CompuAdd, around 1986 or so, my father had to give me a loan as it cost around $1800 (including options and accessories). My system has a 80MB hard drive (considered large at the time) and a kick-butt CGA 14 inch monitor. Nowadays you can purchase a Dell Inspiron 530, with a Intel Celeron 1.6GHz processor and 270GB drive (no monitor), starting at $349. Yet in the healthcare industry the opposite seems to hold true.

Senator Obama then states that he will “sign a healthcare plan into law by the end of [his] first term in office” that will “guarantee quality, affordability and portability of health coverage for every American; modernize the U.S. healthcare system to contain spiraling healthcare costs and improve the quality of patient care …” Here we go again. A politician who claims that they are going to “improve” and “modernize” a system that, in virtually the same breath, just seconds earlier, he was praising as “the best medical technology in the world” which offers most Americans (again in his words) “their choice of top doctors and hospitals.” So … how does a liberal go about “fixing” such a system?

Well, the very first point he mentions in his plan is a “public insurance program.” As I pointed out last week, once such a program is created, employers will cease carrying health insurance as a benefit to entice employees. Ah … but Senator Obama has that covered. Just as I mentioned last week, another of his action items is “require all employers to contribute toward health coverage for their employees or toward the cost of the public plan.” Starting to sound familiar?

Can anyone honestly say that they want their healthcare being provided in a similar fashion that the DMV provides licensing and registration services?
Once the government takes over healthcare we are going to see a LOT more pain and suffering.

Senator Obama then states that “For those who already have insurance, the only thing that will change is that their premiums will be lower.” Are you kidding me? He hasn’t addressed any of the root causes for high premiums, yet he wants everyone to believe that mandates and a new tax — taken before you see your paycheck — is going to have the sole result of lowering premiums. Senator Obama then says “My plan will demand greater efficiencies from our healthcare system…” and “… we would reduce the cost of our healthcare by improving quality.” This is not logical. It is in the best interest right now of our private healthcare system to reduce costs through efficiency and improvements. Quality comes at a price. Increasing it does not “decrease” costs.

So, what has Senator Obama completely ignored regarding ever increasing healthcare costs? Senator Obama is also Attorney Obama. Obama, like
Attorney Hillary Clinton and Attorney John Edwards, refuses to look into the mirror. It is our legal system that is the root cause of our healthcare crisis. John Edwards, a trial lawyer, even participated in class-action lawsuits that had the effect of increasing healthcare costs.

We also have a government agency — the FDA — that holds back life-saving medicines from people with terminal illnesses so that any potential long-term negative effects can be studied for years. Meanwhile the people who could benefit from those drugs are dying.

It is my understanding that many of these drugs have been in use overseas for years. There is even pressure by some politicians to stop the “off-label” use of certain drugs that have known beneficial properties in improving conditions the drugs were not meant to treat.

And people want the government making decisions about what kind of care we need? Come on!

James Simpson can be reached at .

Reader Reactions

Posted by ( barnun ) on April 16, 2008 at 2:53 pm

Ron, valid points. It’s nice to have valid discussion with someone who knows why they think how they do and can point to logical reasoning towards their point of veiw. sometimes it takes some debate to draw this out.

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Posted by ( RonCharest ) on April 15, 2008 at 5:32 pm

Barnun,

We already have two extremely successful federal healthcare programs in this country that work on a socialist model - excluding Medicare and Medicaid.  Those two programs are the Veteran’s healthcare system, and the program used by all members of congress. 

Romney, with the help of his Democratic-led state legislature, did create a good program.  So did Dr. Dean in Vermont.  Both have good features, and both have flaws.  The VA system has some flaws.  The plan used by congress has no flaws other than it would probably be way too expensive to be implemented on a national level.  These are good incubators for a national plan.  But I stand by my earlier statement that we need to remove the profit potential from HMOs, and TIGHTLY regulate any insurance company that offers health insurance. 

Having the federal government subsidize medical school is a valid idea.  This country currently has a severe shortage of doctors and nurses graduating from our schools, which is one reason why there are so many health care professionals working here from abroad either on H-1B visas or other type visas. 

Of the people who do graduate from our medical schools, they are saddled with such excessive student loans they can’t afford to take anything but the highest paying jobs they can find, immediately out of med school. Which leads to a severe shortage of medical people in our rural (low-paying) areas.  The shortage of doctors in our rural areas has reached such a crisis that International Charity Medical have started operating within our country - a pretty sad commentary for supposedly the nation with the highest standard of health care in the world.

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Posted by ( barnun ) on April 15, 2008 at 1:29 pm

Ron,
who is going to pay for your plan ? do you make all doctors federal employees ? if so, you have to go back to the college level and pay for the Dr.‘s education. our federal government has done such a great job with everything it manages, i’m sure our health care system would only improve, right ? I did state and I quote “Universal health care can work as long as it�s done with the free market vs using a socialistic model.“ Mitt Romney implemented the only working model, it’s still private, state mandated and financially stable. If anyone in our country were going to vote with healthcare as their Key issue, Romney was the only real choice.

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Posted by ( Grant Gary Jacobsen ) on April 13, 2008 at 11:12 am

Rich people do not care a whit about government or private health care plans. Only the poor people do. Can you figure out why? (By the way, the guy sitting next to you on the Metro may be a poor guy with untreated TB—good luck.)

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Posted by ( RonCharest ) on April 11, 2008 at 3:07 pm

Barnum,
(1) What a doctor or Hospital charges is related to Insurance company charges - HMO or Insurance companies / Medicare / Mediecaid dictates how much they will reimburse for services.  What is not the same is how much HMOs / Insurance Companies charge in premiums vs how much they actually pay to providers.  The disconnect is so great several state and local governments currently have RICO charges against HMOs.
(2) Drugs from Canada, along with those from many other industrialized nations, are cheap and they come from the same manufacturers.  The difference is that countries with national (i.e. Socialist) healthcare systems negotiate bulk-rate pricing.  Here, the 2005 Republican-Contolled congress specifically banned Medicare/Medicaid programs from negotiating lower drug prices. 
Also, please note that about 80% of all drug research is done with federal grants or tax-writeoff money.
(3) Claiming medical malpractice lawsuits drive up healthcare pricing is wrong.  Studies of states where there are strong restrictions on medical malpractice lawsuits (ex: Mississippi) shows that Malpractice Insurance rates do not decrease with fewer lawsuits -  a result of lax insurance regulation.

Businesses are in business to make a profit.  A business should be expected to charge what the market will bear for any goods or services.  The answer to making healthcare available to all Americans is to establish it as a basic human right, and take the profit-making requirement out of the equation.

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Posted by ( barnun ) on April 11, 2008 at 1:16 pm

I’m curious about Ron’s comments. You see, what a doctor or hospital charges is not the same as what you are paying for health insurance. they are completely seperate issues. Lets also not forget about fair comparisons. Drugs from Canada are cheap. these are generic manufacturers that take a recipe and make pills. The R&D;for the recipe takes billions of dollars and years of work, which is why those pills cost more here in the US where they were developed. As far as teh FDA holding back, who gets sued when someone takes a new prescription and dies from it ? Although I do think the drug company lobby is strong like the oil lobby and helps to hold back drugs that were not developed here since they cannot enforce higher market prices.
Universal health care can work as long as it’s done with the free market vs using a socialistic model.

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Posted by ( rain3fly ) on April 11, 2008 at 1:05 pm

Simpson always gets it wrong.  He fails, as usual, to consider such ill-conceived government interventions into the health system, such as Bush’s recent Presecription Discount Plan that creates another colossal entitlement program to the national debt and specifically prohibits Medicare from negotiating prices with drug companies (talk about free enterprise!) as it provides a federal subsidy to their already enormous profits.  Simpson reacts instinctively along party lines and doesn’t consider the issues on their own merits.  Nor does he take the time to study his subject with an open mind.  Health care in the U.S. in a complex and very expensive topic.  It concerns us all.  It deserves informed judgement and knowledge, not immature, partisan mud-slinging.

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Posted by ( Godsaveus ) on April 11, 2008 at 12:52 pm

Part of the high cost of the health insurance premiums is due, millions of dollars that the health insurance industry has to pay in litigation for malpractice, many lawyers make their fortunes winning those cases Senator Edwards (Democrat presidential candidate) among others. The best way to provide heath insurance is first, giving tax credit at the time the taxpayer fills the income tax return, second set a maximum dollar amount that any patient can claim for medical malpractice. And let the free market work.

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Posted by ( phdee ) on April 11, 2008 at 11:52 am

Simpson obviously has not gone lacking for health care, so he doesn’t understand the problem.  When you give a dog a bowl of warm milk, the dog laps it up, and then goes off, lies down, and licks his underside.

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Posted by ( RonCharest ) on April 11, 2008 at 7:39 am

Once again, Jim Simpson gets it wrong.  Here is the base problem with for-profit “Free market” health care:  In a “Free Market” the value of any goods or services are exactly what the customer is willing to pay.  No more, no less.

So, if you are sick, how much are you willing to pay to get well?  Ans:  As much as you have to. 

The for-profit healthcare model, combined with lack of medical insurance regulations, has created a situation where millions of Americans right now are needlessly dying because they cannot afford health care.  This has occurred under the Republican-Pushed free market non-government regulation approach.  It’s obviously time to try something different; using the approach that health care should be a basic human right.

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