Slow Days, Time To Think

Opinion polls are not looking great for President Obama.  They are also not looking good for the American people’s apparent wisdom.

First, it is incredulous that voters may turn the White House back over to Republicans just a scant four years after George W Bush disgraced the country and ruined the economy.  Choosing the President, however, is everyone’s right and the majority does rule.

Second, the greater disappointment comes when conservatives, as well as rank and file Republicans, place as their number one priority the repeal of the Affordable Care Act.  Super Pacs are filling the television airways with statements like, “ACA is the biggest tax ever” and “ACA will hurt seniors on Medicare to the tune of $500 billion”.  Both of these statements are false but that is not the real point.

The point is that ACA brings insurance (health care coverage) to millions who were denied coverage previously, and it contains the first steps towards some cost control.

It is true that ACA fails to take dramatic steps towards bringing US health care costs in line with better programs found in other modern industrial countries.  ACA cost control measures in fact will not kick in for several years and even then would only moderate the increase in health care cost increases.

But ACA does add a significant number of people to health care rolls allowing them to access preventative care, just like the rest of wealthier Americans who have health care.   Repealing ACA will lead to increasing the uninsured and do nothing but increase costs for the rest of us.

Republicans have not said what they would do exactly if they get the chance to repeal ACA.  Their slogan is “repeal and replace”.  The “replace” part is something we are left to guess.

Representative Paul Ryan budget plan may have provided some insight.  He would shift cost from the government to citizens and he would slash Medicare.  Sounds to me like a tax (increased cost) on everyone.  The GOP is totally silent on insuring the currently uninsured although mention of tax credits have been made.

The biggest fib the GOP is happy to make is intimating that under their plan total health care costs will decrease.  Currently the uninsured get sick and use emergency rooms.  That cost is passed on to all others who are insured.  Republicans also claim that the free market competition will drive down the prices of health care.  The cost problems of health care are much deeper.

The issue both parties are missing (actually I am sure both know but for political reasons will not discuss) is that Americans need to see two numbers get smaller.  (1) The national health care per person spend is two time that of Germany and France (and about 15 other countries) at about $9000 per person ($7500 in 2007 numbers).  This difference needs to come down (maybe by 50%), and then its growth needs to be held to less than inflation.

(2) Each individual’s health care annual cost is like airplane ticket costs.  No two people on board seem to pay the same.  With employer provided insurance, some pay nothing, some pay a portion with salary withholding, and others pay salary withholding and co-pays.  Also, everyone employed gets a tax break directly or indirectly.  Health care costs need to be transparent and based upon the entire population’s risk.

The American public is smart enough to know all this.  It has chosen, however, to look the other way.  Now the polls suggest the public may be ready to drink the GOP Kool Aid.  Under the GOP’s likely plan, Americans will pay more for their health care, more Americans will be uninsured, and per capita health care costs will continue to rise.

The worrisome reality is that health care costs as well as Medicare costs are going to rise under either Administration.   Without fundamental restructuring, natural market forces will continue to drive costs up.  Leaving millions without insurance coverage will not reduce health care costs.

I wonder which party will be in power and holding the bag when the music stops and the system does implode?

Explore posts in the same categories: Barack Obama, Democratic Party, Politics, Republican Party

Tags: affordable care act, congress, gop, health care, health care costs, medicare, universal health care

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