What I care about is the advancement of liberty, prosperity, and equal treatment. That’s the lens I view through, it’s my paradigm. With that said, Obamacare is certain to make health insurance companies increasingly prosperous. Proof is the fact that insurance companies have lined up to support the bill, which bought their support with a myriad of subsidies, anti-competitive measures, and a mandate that citizens must purchase near-cadillac versions of their products. By further entrenching the existing health insurance oligopoly Obamacare further limits those companies exposure to market pressures that in every other free sector of the economy (including the aspects of health care that insurance doesn’t cover) force organizations to be efficient and invite innovation, which combined with competition for consumers’ dollars, drives down consumer costs. Now, the federal government is playing the role of the marketplace, tasked with “checking” health insurance companies. A lamb to lobbyist slaughter, mark my words.
By contrast, the bill is certain to diminish the prosperity of productive citizens, who will pay an additional tax on their health insurance plans, see their health insurance costs rise, and experience an ever worsening quality of health care as an already overextended health care infrastructure adds millions of new patients. All of this has been done in the name of universal health care, which by the way is nearly as much a misnomer as ‘health care reform.’ ’National access’ is a better term – I’ll call it “universal” when rape victims in Darfur have access to health care. If national access to healthcare is the benchmark for western civilization – rather than ever increasing measures of individual liberty, prosperity, and equal treatment – then there are far better ways to go about providing national access to health care. For instance, simply implementing a national version of Gov. Mitch Daniels’ (R-IN) Healthy Indiana plan, which is provides statewide access to health care relatively efficiently.
To be sure, Obamacare’s purpose isn’t to provide national access to health care – national coverage doesn’t begin for four years (taxes begin now, however). Rather, under the guise of ‘reform’ Obamacare carries the torch of government expansion, entitlement, deficit spending, curtailment of civil, social, and economic liberty, and repeated felation of special interest groups, voting blocs, and corporate conglomerates – the modus operandi of both parties, unfortunately.
What to do? We should elect a President, preferably Gary Johnson, and a Congress, that will take a blowtorch to the labyrinth of unnecessary health care regulation that obstructs new entrants to the health insurance market, precludes innovative health care delivery systems, denies permits to construct new health care facilities, and rewards with tax incentives the buffet-like insurance plans employers purchase, while punishing individuals by taxing the less expensive plans they typically purchase when they control their health care dollars.
Here’s more real health care reform, from Cato, from 2002:
Health care is cheap: Eat less fat and more veggies, take a daily walk, quit smoking, and drink a little wine with some nuts. Fail to take care of yourself, and the long-term results can be costly — like the results of never changing the oil in your car and never replacing the tires. New diagnostic and surgical technologies involve expensive equipment and skills. Even so, insurance for gigantic medical expenses is also cheap. My policy pays nothing unless annual medical bills top $2,000. Most people call that “catastrophic” insurance. I call it real insurance.
By contrast, I have a friend who’s counting on being able to receive a lung transplant within twenty years.
Insurance for accidental damage to cars and homes is real insurance — something to protect against emergencies, not routine expenses. We do not expect an insurance company to pay for tires and gasoline, or to pay for home painting and termite inspections. When families make their own choices and pay for them, they choose insurance only for catastrophic expenses — the car becoming a total wreck, the house burnt to the ground or the breadwinner dropping dead. If we never collect a dime from such genuine insurance, we consider ourselves lucky.
With health insurance, by contrast, we all want somebody else to pay. Each of us expects to pay less for health insurance than the insurance companies pay to hospitals, doctors and pharmacies. Sadly, that does not add up.
More than a fourth of the U.S. population already has federally subsidized health care through Medicare, Medicaid and military health benefits. If that percentage ever reached 100 percent, as some politicians promise, we might finally begin to wonder how it is possible for everybody to subsidize everybody else.
If you subsidize something, people want more of it. That increase in demand translates into a market in which prices can more easily be raised.
If health insurance operated like car insurance we could implement a program similar to a food stamp program to provide national access to health care. Of course, the food stamp system is feasible because the cost of food is relatively cheap. Food is relatively cheap because, corn subsidies and trade protections aside, the production and especially the sale (delivery) of food is a highly competitive market. By contrast, medical care costs rise every year, except in every aspect of the health care industry that insurance doesn’t cover, such as elective surgeries, where prices drop every year as consumer demand spurs innovation and suppliers compete to provide the highest value quotient. For example, the cost of getting stitches (a simple procedure humans have been performing for centuries) rises every year, while the cost of having laser beams magically and painlessly make your eyes perfect drops every year. The difference between stitches going up and laser eye surgery going down is their respective purchase and delivery system. For me, reform means moving closer towards the model that drives down costs, using health savings accounts, rather than insurance, to pay for every health purchase except catastrophic care, and making sure the marketplace for catastrophic health insurance is competitive.
Now, what of freedom? Here’s twenty ways Obamacare limits civil and economic freedom:
1. You are young and don’t want health insurance? You are starting up a small business and need to minimize expenses, and one way to do that is to forego health insurance? Tough. You have to pay $750 annually for the “privilege.” (Section 1501)
Don’t you get insurance anyway, since it’s ‘universal’? If so, in effect you’re insurance rate is $750. Why would anyone pay into the insurance pool? This bill is a trojan horse to make health care so expensive, so lousy, so inaccessible (you’ve got coverage, but you never see your doctor) that a single payer system looks delicious by comparison. And if you think that a single payer system will prevent the same companies, lobbies, and interest groups that profit from Obamacare from making out like bandits I’ve got a bridge to nowhere to sell you.
2. You are young and healthy and want to pay for insurance that reflects that status? Tough. You’ll have to pay for premiums that cover not only you, but also the guy who smokes three packs a day, drink a gallon of whiskey and eats chicken fat off the floor. That’s because insurance companies will no longer be able to underwrite on the basis of a person’s health status. (Section 2701).
See here for articles discussing why paying for other people’s health is economically, logically, and morally objectionable.
3. You would like to pay less in premiums by buying insurance with lifetime or annual limits on coverage? Tough. Health insurers will no longer be able to offer such policies, even if that is what customers prefer. (Section 2711).
In other words, you must have health care coverage you don’t need, won’t use, and may not even understand you have.
4. Think you’d like a policy that is cheaper because it doesn’t cover preventive care or requires cost-sharing for such care? Tough. Health insurers will no longer be able to offer policies that do not cover preventive services or offer them with cost-sharing, even if that’s what the customer wants. (Section 2712).
I bet the homeopathy / chiropractor lobby likes that.
5. You are an employer and you would like to offer coverage that doesn’t allow your employers’ slacker children to stay on the policy until age 26? Tough. (Section 2714).
If you get lucky you’re slacker kids will move to Canada in response to the country electing Gary Johnson in 2012. After all, threatening to move to Canada in response to not liking the country’s direction is number 75 on the list of SWPL.
6. You must buy a policy that covers ambulatory patient services, emergency services, hospitalization, maternity and newborn care, mental health and substance use disorder services, including behavioral health treatment; prescription drugs; rehabilitative and habilitative services and devices; laboratory services; preventive and wellness services; chronic disease management; and pediatric services, including oral and vision care.
You’re a single guy without children? Tough, your policy must cover pediatric services. You’re a woman who can’t have children? Tough, your policy must cover maternity services. You’re a teetotaler? Tough, your policy must cover substance abuse treatment. (Add your own violation of personal freedom here.) (Section 1302).
Wow, that first bit there covers basically every aspect of health care except elective surgeries. By the way, I wouldn’t be surprised that the substance abuse requirement is challenged on freedom of religion grounds.
7. Do you want a plan with lots of cost-sharing and low premiums? Well, the best you can do is a “Bronze plan,” which has benefits that provide benefits that are actuarially equivalent to 60% of the full actuarial value of the benefits provided under the plan. Anything lower than that, tough. (Section 1302 (d)(1)(A))
Bronze plans are akin to a pre-owned Cadillac.
8. You are an employer in the small-group insurance market and you’d like to offer policies with deductibles higher than $2,000 for individuals and $4,000 for families? Tough. (Section 1302 (c) (2) (A).
Just tell the federal government you’re too important to your community to fail. That should result in a bailout or subsidy – too important to a ‘community’ will be the next “too big to fail.” Mark my words.
9. If you are a large employer (defined as at least 101 employees) and you do not want to provide health insurance to your employee, then you will pay a $750 fine per employee (It could be $2,000 to $3,000 under the reconciliation changes). Think you know how to better spend that money? Tough. (Section 1513).
10. You are an employer who offers health flexible spending arrangements and your employees want to deduct more than $2,500 from their salaries for it? Sorry, can’t do that. (Section 9005 (i)).
I wonder if the above provision was slipped in just to screw with Whole Foods, whose innovative and effective health care plan is championed by libertarians and decried by liberals.
11. If you are a physician and you don’t want the government looking over your shoulder? Tough. The Secretary of Health and Human Services is authorized to use your claims data to issue you reports that measure the resources you use, provide information on the quality of care you provide, and compare the resources you use to those used by other physicians. Of course, this will all be just for informational purposes. It’s not like the government will ever use it to intervene in your practice and patients’ care. Of course not. (Section 3003 (i))
I don’t know enough about the judicial constructions concerning the medical doctor-patient privilege to know Courts will reject this provision, but it will certainly be litigated at great cost to all.
12. If you are a physician and you want to own your own hospital, you must be an owner and have a “Medicare provider agreement” by Feb. 1, 2010. (Dec. 31, 2010 in the reconciliation changes.) If you didn’t have those by then, you are out of luck. (Section 6001 (i) (1) (A)).
13. If you are a physician owner and you want to expand your hospital? Well, you can’t (Section 6001 (i) (1) (B). Unless, it is located in a country where, over the last five years, population growth has been 150% of what it has been in the state (Section 6601 (i) (3) ( E)). And then you cannot increase your capacity by more than 200% (Section 6001 (i) (3) (C)).
Numbers 13 and 14 shouldn’t be a surprise to anyone – US hasn’t authorized the building of a new petroleum refinery or nuclear power plant in a long, long time. As a result, energy prices have risen dramatically. So will health care prices, with such restrictions on infrastructure development.
14. You are a health insurer and you want to raise premiums to meet costs? Well, if that increase is deemed “unreasonable” by the Secretary of Health and Human Services it will be subject to review and can be denied. (Section 1003)
Your best response is to fire all of your center-left and left employees, who will be certain to assist ACORN next election cycle and elect a president and Congress who will get you a bailout or subsidy of some sort.
15. The government will extract a fee of $2.3 billion annually from the pharmaceutical industry. If you are a pharmaceutical company what you will pay depends on the ratio of the number of brand-name drugs you sell to the total number of brand-name drugs sold in the U.S. So, if you sell 10% of the brand-name drugs in the U.S., what you pay will be 10% multiplied by $2.3 billion, or $230,000,000. (Under reconciliation, it starts at $2.55 billion, jumps to $3 billion in 2012, then to $3.5 billion in 2017 and $4.2 billion in 2018, before settling at $2.8 billion in 2019 (Section 1404)). Think you, as a pharmaceutical executive, know how to better use that money, say for research and development? Tough. (Section 9008 (b)).
16. The government will extract a fee of $2 billion annually from medical device makers. If you are a medical device maker what you will pay depends on your share of medical device sales in the U.S. So, if you sell 10% of the medical devices in the U.S., what you pay will be 10% multiplied by $2 billion, or $200,000,000. Think you, as a medical device maker, know how to better use that money, say for R&D? Tough. (Section 9009 (b)).
The reconciliation package turns that into a 2.9% excise tax for medical device makers. Think you, as a medical device maker, know how to better use that money, say for research and development? Tough. (Section 1405).
Hope 15 and 16 doesn’t result in my pal Marc, an R&D engineer at Alcon, losing his job.
17. The government will extract a fee of $6.7 billion annually from insurance companies. If you are an insurer, what you will pay depends on your share of net premiums plus 200% of your administrative costs. So, if your net premiums and administrative costs are equal to 10% of the total, you will pay 10% of $6.7 billion, or $670,000,000. In the reconciliation bill, the fee will start at $8 billion in 2014, $11.3 billion in 2015, $1.9 billion in 2017, and $14.3 billion in 2018 (Section 1406).Think you, as an insurance executive, know how to better spend that money? Tough.(Section 9010 (b) (1) (A and B).)
The people who come up with these taxes, fees, and levies, are pretty damn imaginative. Too bad they don’t use their brains in the private sector and create wealth, rather than devolving into professional leeches.
18. If an insurance company board or its stockholders think the CEO is worth more than $500,000 in deferred compensation? Tough.(Section 9014).
Meanwhile, the president of Ohio State University makes $1.2 million, annually.
19. You will have to pay an additional 0.5% payroll tax on any dollar you make over $250,000 if you file a joint return and $200,000 if you file an individual return. What? You think you know how to spend the money you earned better than the government? Tough. (Section 9015).
That amount will rise to a 3.8% tax if reconciliation passes. It will also apply to investment income, estates, and trusts. You think you know how to spend the money you earned better than the government? Like you need to ask. (Section 1402).
20. If you go for cosmetic surgery, you will pay an additional 5% tax on the cost of the procedure. Think you know how to spend that money you earned better than the government? Tough. (Section 9017).
Unfortunately the members of Congress are exempt from Obamacare, which is despicable. And what of equal treatment? Discriminations discusses some disturbing special treatment provisions in Obamacare, just to ensure that Obamacare advances none of what I care most about – liberty, prosperity, and equal treatment.
In sum, Obamacare is a Victory for Obama’s Agenda of Spreading Dependency, and an epic fail for individual liberty, prosperity, and equal treatment.
Health care will not be seriously revisited for at least a generation, so the system’s costliest defect — untaxed employer-provided insurance, which entangles a high-inflation commodity, health care, with the wage system — remains. Obama could not challenge this without adopting measures — e.g., tax credits for individuals, enabling them to shop for their own insurance — that empower individuals and therefore conflict with his party’s agenda of spreading dependency.
[UPDATED 3/31/2010 @ 12:00pm]