Clink on Link Below for an Audio Only Discussion of Health Reform
Government “Hellth” Reform
Health Reform or Hellth Reform? Health reform in Washington has never been about health or healthcare. It is about power. Controlling $2.5 trillion dollars gives politicians control over election results. The bill passed out of the Senate HELP Committee is loaded with new controlling councils, agencies, boards, departments and other entities all with the power to spread tax dollars around to cronies through “planning and establishment” grants. The word “grant” shows up 421 times in the bill.
We already have the largest national health care system in the world. The government controls 50 cents of every healthcare dollar spent in the United States. Federal programs of Medicare, Medicaid, CHIP, VA health, and Tri-Care are responsible for half of the healthcare in the country. Yet, these government controlled programs exemplify out of control spending, waste, fraud, abuse, and the lack of modern technology that the president so confidently states that the federal bureaucracy will change once all healthcare is under their control.
The reason Congressional health reform proposals make little sense to the general public is that they inherently know that the federal government cannot solve the problems that are created by current government ineptitude. Many citizens are confused by the proposals because they believe that the political class is trying to improve health and healthcare for all. They are not.
If improving health and controlling healthcare costs was the goal, why would the president and Congress ignore the non-partisan study by the American Academy of Actuaries which identified an approach where “total savings generated could be as much as 12 percent to 20 percent” and future “trend rates (are) lower than traditional plans by approximately 3 percent to 5 percent.” Importantly, the Academy report also concludes that in these plans “recommended care for chronic conditions (are) at the same or higher level than traditional plan participants” and the “studies reported a higher incidence of physicians following evidence-based care protocols.”
The basis for these remarkable results is the use of consumer-directed health plans. Healthcare consumerism has been developing in the employer and personal insurance market for nearly a decade. The report is an unbiased view that shows amazing results. New generation plans are being developed and implemented by employers and purchased by individuals that show even higher levels of savings. Healthcare consumerism encourages personal responsibility with rewards and incentives for healthy choices and adherence to physician treatments. They are good for both the healthy and those suffering from chronic conditions. But consumerism is rejected by the proposed bills. The president speaks many of the words and uses the language of consumerism, but the Senate bill would make illegal rewards and incentives for those who take the initiative to control their blood pressure, lower cholesterol, stop smoking, or improve other health related standards.
Changing federal and state laws to support the growth of healthcare consumerism by promoting personal responsibility can lower the uninsured by 15 million without any government expenditures. If Obama and Congress have better ideas proven to control costs and improve quality of care they should start by changing the 50 percent of healthcare already under government control. Mr. President, show the country, employers, and voters how to successfully implement health reform before the 180 million with private health insurance who are moving towards healthcare consumerism suffer from your political Hellth Reform. We all know that the devil is in the details.
Ronald E. Bachman FSA, MAAA is a Senior Fellow at the Center for Health Transformation, an organization founded by former U.S. House Speaker Newt Gingrich. Nothing written here is to be construed as necessarily reflecting the views of the Center for Health Transformation or as an attempt to aid or hinder the passage of any bill before the U.S. Congress. Mr. Bachman was an outside expert to members of Congress and the Clinton administration during the 1993-94health reform.
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