Many Americans want some degree of health care reform. Let's face it, it does have it's flaws, but the flaws aren't totally the fault of the private health insurance industry, nor the health care providers. Rather it is primarily the fault of the very entity that proposes to drastically alter the present system through draconian controls - yes, our government.
Take the Medicare program. It has been around for some 40 plus years and admittedly has increased the availability of health care to the over 65 age group. But at what cost and consequence? Every worker on a payroll pays a Medicare tax and will be automatically eligible at age 65 for Medicare Part A which covers hospital inpatient services only. They will be also eligible for Part B (outpatient and doctor services) for a small premium starting at $96.40/month which goes higher depending on income. The Medicare program tries to contain costs by severely restricting its reimbursements to hospitals, doctors, and other providers. These health care providers then have to make up for their losses by charging higher prices to private insurers and those that self pay. That's why a lot of medical providers are choosing not to participate in Medicare and will not accept patients with Medicare only. Medicaid (health care for the poor) does the same thing and that's why even fewer providers choose to participate. All Medicare (and Medicaid) does is redistribute the higher costs to the private sector and to the public at large.
Even with all the taxes, premiums, and the reduced reimbursements to health care providers, Medicare cannot sustain itself without massive tax increases, increases in premiums, even lower reimbursement rates, further rationing of health care, or raising the eligibility age. So, wouldn't you have to assume that Medicare is a financial failure? This is what would happen if everyone was on a public option government program. If it were accompanied by an eventual government purging of private health insurers because of their inability to compete, the result would be catastrophic leaving citizens to the mercy of the government plan.
Private insurers could not keep operating at a loss without increasing premiums. The government would be able have low premiums and simply cover its losses by increasing taxes and printing and borrowing more money. Many health care providers would not feel it worthwhile to continue providing care with stingy reimbursement rates and, without tort reform, paying huge increases in malpractice fees. Without sufficient providers, the government itself would be forced into running health care facilities with government paid workers. Because of the huge increases in government spending it would then be forced to cut spending on national security and the military, reducing our country's ability to defend itself. Remember Europe really relies on the military power of this country for their defense so they were able to decimate their military to help pay for all its government entitlement programs. This would have catastrophic consequences for the free world allowing totalitarian regimes to spread their ideologies.
So I ask if Medicare is so inefficient, then why do well educated policy makers and politicians continue to want to expand it? You guessed it - it is all about control. Let's hope they don't succeed, and, if they do, we can elect politicians who can reverse the damage in 2010 and 2012. I hope we're not too late.
