In my post today on Krugman-in-Wonderland, I take on Paul Krugman’s rosy predictions about the new “healthcare” bill that Congress is about to foist upon us.
Once upon a time, we had at least some expectations that Nobel Prize winners in economics would not turn into outright political shills. That time is long past, I’m afraid.
{ 6 comments }
I agree with the author’s premise that the current bill will wreck the current system. I also agree with the author that this is merely phase one in a plan for a National Health Service or single payor plan. In politics, timing is everything and I am not sure the Dems will get a chance for phase two if they are routed in fall, 2010. If they are routed and the system is wrecked, its hard to say what the public might demand for a replacement.
I have a different analysis as to the final outcome. You have to agree with the following premises: The current bill with its skewed incentives will encourage employers to stop providing coverage and discouragr individuals from buying coverage until they really, really need it. The only people who could justifiably bear the expense of the gold plated plans being foisted are those whose hospitalization or treatment exceeds the cost of the plans. This is going to be a very small group of people. Thus, by 2012 there will be legions of individuals without health insurance and they will be paying for their own healthcare delivery entirely out of pocket.
Thus, I hope the bill passes. Nothing could be better for pricing and healthcare delivery than to return bargaining and payment for healthcare to uninsured individuals paying out of their own pocket. When prices drop as doctors and hospitals, once again, have to haggle with their patients over payment and treatment, the public might find that wrecking the current system is a positive outcome.
Your outcome rests upon the assumption that government won’t further crack down on individuals exercising their right to choose which services to provide/purchase. Remember, there’s already a provision that levies fines/penalties for not complying with the insurance mandate. If Democrats have this level of government control again, I wouldn’t put it past them to ban practitioners from: refusing to serve Medicare/Medicaid, sell their services on a cash-only fee, or outright nationalizing the whole medical profession.
Luckily, people are waking up (just look at the disapproval ratings amongst the general public).
I just hope we can somehow get the insurance industry out of paying for regular doctor visits and other non-catastrophic care. But that would make too much sense, so Congress will deem it worthy of mandating every citizen buy into the same failing pool. By the way, it’s looking very likely that the Senate bill is going to be passed in the House this weekend.
In the two versions of the bill that are floating, one levies a fine of 2100 dollars and the other a fine of two point one percent of adjusted gross income. Regardless of which version passes, unless you are in the top one percent of earners it is cheaper to pay the penalty than buy the insurance. Likewise for employers who throw their employees in the pool. The penalty for employers is cheaper than buying insurance for employees.
Also, timing is key. The democrats have the numbers to destroy the system in this Congress. They won’t in the next Congress.
The comments sections of his articles are the most frustrating parts.
It’s really to come as no surprise that in a world where government, through a combination of regulations and subsidies, have their hands in the entire country’s educational infrastructure, that through direct or indirect means the key players in such systems, who receive their living from government institutions, will display a childish level of faith in those very systems.
“Regardless of which version passes, unless you are in the top one percent of earners it is cheaper to pay the penalty than buy the insurance. Likewise for employers who throw their employees in the pool. The penalty for employers is cheaper than buying insurance for employees.”
Completely stupid, until you realize what is going on. The whole point of this bill is not to provide health care to people who are currently not insured. The purpose is to squeeze cash out of those working people who are currently not in a plan, and feed the cash into the black hole of medicare and medicaid. Not saving the system, but keeping it from collapsing for one or two more election cycles. Smart politicians, really stupid electorate.
Comments on this entry are closed.