The Real Arithmetic Of The Health Care Reform

Posted on March 21, 2010 by Chris F. Masse

The Real Arithmetic Of The Health Care Reform – NYT – by a former CBO director.

Required reading for Paul Hewitt. :-D

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Prediction Market Chart

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ADDENDUM

More info on health care reform on Memeorandum, Politico and Slate.

About Chris F. Masse

Founder and President of Midas Oracle
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5 Responses to The Real Arithmetic Of The Health Care Reform

  1. Paul Hewitt says:
    March 21, 2010 at 9:04 AM

    An excellent piece, written by a former director of the Congressional Budget Office. It should be required reading for Ron Paul, too! Every US citizen should read it and demand reform of the CBO.

    I believe the guy, because it sort of makes “sense” in a “US government” kind of way. However, the author may be partisan, too. He doesn’t consider the fact that many of the presently uninsured still “use” health care services. So, they are paid for by someone – hospitals, social services, pharmaceuticals, etc… Presumably, HCR will reduce (or eliminate) the burden on these institutions, at least partially offsetting the deficit increase. Essentially, HCR is a *funding* issue. i.e. who will pay for what is already being done.

    While economics is more concerned with “what is”, rather than “what ought” (to be), it can be used to present and analyse options. Among the many, cap legal settlements for medical malpractice. which will substantially reduce malpractice insurance and lower doctor service fees, generating savings to all socially funded medical care programs. It does “hurt” the ambulance-chaser lawyers, though. Another one: Negotiate with pharmaceutical companies for cheaper drugs. Where one of the largest, if not the largest, consumers of drugs pays more than Canada for its pharmaceuticals, you know there is a problem that needs to be fixed. Eliminate any drug (for coverage), where you need to ask your doctor if it is “right” for you. It isn’t. These drugs are the “pet rocks” of the health care system.

    Reform the CBO to provide *independent* audits of the costs AND benefits of proposed bills. But don’t trot out 45 year old projections and say, “see”!

  2. Chris F. Masse says:
    March 21, 2010 at 1:25 PM

    “Essentially, HCR is a *funding* issue”

    When something is free (paid by taxes on businesses), people abuse of it. You’ll see an explosion of spending, and higher taxes, in the end. Low employment, later on, like in France.

  3. Paul Hewitt says:
    March 21, 2010 at 1:48 PM

    Chris, even when something is “free” (like health care), it isn’t truly “free”. Basic health care is not a choice “good”. It is something you need, regardless of the cost. Reducing the cost of such care will not increase the amount demanded. Remember, I’m talking basic health care, here.

    For services above the basic ones, even when they are “free”, the “user” pays a price, in terms of time, in order to acquire those services. They are not free. Simply providing basic health care insurance will not lead to an explosion of demand for these services.

    If it is a question of what “ought” they to do, perhaps they should end the war in Iraq, which would more than cover the cost of the HCR bill.

  4. Paul Hewitt says:
    March 22, 2010 at 7:07 AM

    Mark Steyn is usually quite level-headed. As for Don Boudreaux, I’m convinced he took washroom breaks every time a Republican spoke. Had he watched all of it, he would have heard far more imbicilic comments coming from the other side.

    No one believes this bill will provide “world-class” health care, but it is a start. Steyn’s view is ridiculous (and I’m sure he knows it).

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