Healthcare & Health Reform part 2

September 10, 2009

Healthcare and Health Insurance Reform part 2

I listened and watched the President’s speech from last night today – rewound it a couple of times to ensure I was hearing what he said properly.  I must say I have some problems with his proposal(s), and the way he presented his lecture.

He pointed fingers at conservatives for questioning his program.  He blamed conservatives for spreading lies and distortions regarding health reform.  He called for bipartisanship with an extended hand that resembled a fist.  He warned naysayer’s and questioners would be “called out”.  So, the President is resorting to threats and intimidation tactics to force his “neutral” program through.  Great, sounds bipartisan to me…

He promised deficit neutral programs, and he promised insurance reform that includes a public option, and he promises that public option will not interfere with private insurance plans.  How can a government funded program that costs less than any private program be considered free market competition?  If the government sets the rules; coverage minimums; fees; and charges private insurers fees to fund the public option, how does that equate competition?  Simple, it is not a free market solution.  His current proposal is exactly like his comparison of the USPS, FedEx, and UPS.  FedEx and UPS do not compete with USPS, they compete against each other.  Under his health plan, UPS and FedEx would have to cough up roughly three and one-half BILLION dollars each and every year to cover the USPS deficit.

There is no way government run health insurance for 30 million Americans can be deficit neutral even with fees leveraged to private insurers; small businesses; and potential entrepreneurs.  I believe the CBO or some institutional economists will come out with reports verifying the President’s public option is not going to be deficit neutral without additional taxes or higher fee structures than currently proposed.

The President did throw conservatives a bone with his promise to “investigate” tort reform.  We will see.

Aside from the glossy portrait of his program, the Congress will ultimately decide what is in the final bill.  You can bet it will be significantly different and more intrusive than what was outlined Wednesday evening.  Will the President have the courage to veto an over-reaching bill?  Stay tuned.

Bruce

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