The need for health care reform is an issue on which almost all Americans can agree. Health care is in the center of heated debate that comes in troubled times, when the national debt is at $11.5 trillion dollars, and it continues to climb. At the end of the fiscal year 2008, the deficit was $455 billion dollars. CBO projects a $1.85 trillion dollar deficit for 2009.
Is this the right time to consider spending a trillion dollars on government health care? Currently, the US is paying about $415 billion dollars in interest on money borrowed.
The proposed trillion dollar health care spending comes in troubled times when the US is in the throes of economic crises that could continue for some time. The TARP and ARRA stimulus have not produced growth and job losses continue, while China our largest debt holder, is campaigning for a new world currency leaving the US dollar in shaky territory.
The health care proposal also comes at a time when Congress is pushing a cap and trade bill through the Senate that would raise the US deficit higher and cause utility prices to skyrocket as costs are passed down to businesses. The prices then are passed down to consumers. Price rises can also come through other services such as food, clothing and health care.
The spending spree our US government is pursuing is not sustainable. By borrowing more money from lenders, many of whom are becoming scarce, our government is betting on a recovery that is not yet in plain sight. Warren Buffett, leading investor, told CNBC there has been little progress, stating he expects recovery to take years. George Soros, another leading investor, recently profited by nearly $3 billion dollars by hedging bets against the US economy.
As of this writing, the actual cost of the health care proposal is not set in stone. The first proposal projected cost was $1.6 trillion dollars. A newer proposal has the cost at $1.3 trillion dollars.
Is a government run health care care worth plunging our nation into deeper debt with higher deficit? Here are some questions worth asking.
How many people are uninsured because they can't afford health care?
The administration and many news agencies are throwing the number of 46 million Americans who are uninsured but without placing the number in context. Dr. Sanjay Gupta of of CNN provides the following breakdown for the 46 million number.
Non-citizens who are uninsured = 9.48 million
Uninsured by choice (50 to 75K salary)= 8.3 million
Uninsured with salaries in excess of 75K = 8.74 million
Uninsured not qualifying for medical assistance = between 13.9 and 8.3 million
In addition to the quoted figures, a number of uninsured do not take advantage of medical assistance for low income workers and their families.
Will you receive the same level of care with public health?
The Obama administration stated government insurance would limit the use of new technology and treatments. The approach is meant to lower health care costs but has the effect of restricting the quality of care for many. The plan could also work against new technology and development making US economic markets for development less attractive.
If you pay less for health care, you will get less. Those of you who have HMO managed care will grasp that truth immediately.
Will you be able to keep your own health care provider and doctor?
President Obama was adamant in his promise to the American people. He said, "No matter how we reform health care, we will keep this promise to the American people, "If you like your doctor, you will be able to keep your doctor, period. If you like your health care plan, you'll be able to keep your health care plan, period. No one will take it away, no matter what."
AP later reported White House officials saying "the president's rhetoric shouldn't be taken literally."
Employers provide insurance for about 170 million employees. They shop for the most cost effective insurance and they pay a portion of employee health premiums. Eliminating health care coverage for employees, would cut down overhead costs for employers and would make good sense in any economy but especially in a downturn economy.
Why should employers pay for health insurance if the government will take that cost off their hands? They won't be able to compete with government lower costs.
Some have suggested that instead of adding $1 trillion dollars to a health program, Congress would do well to "fix" the Medicare program. If Medicare is an indication of how the government runs health care, we may be in trouble with government health care. Huge overruns and low estimated costs have plagued the system since Medicare began.
Our country is in deep financial trouble on many fronts. Instead of decreasing costs, the US government will be adding $1.3 trillion dollars to the existing system if the health care bill passes.
Finally, a quote from CBO Director Douglas Elmendorf, Harvard-trained Ph. D. economist, "The available evidence also suggests that a substantial share of spending on health care contributes little if anything to the overall health of the nation..."
The deficit is climbing.