The latest argument in favor of Washington getting serious about health care reform came late last week with the announcement that health premiums increased 95% since 2000.
Even more troubling, that premium increase isn’t in ‘2000 plan dollars’; deductibles and copays have increased and benefits have been cut over the last nine years, making the ‘real’ increase much higher. Yet despite the reduction in benefits, the number of employers offering coverage has declined from 69% at the start of the decade to 63% in 2008.
It’s about cost, stupid.
The Democrats’ plans (with the notable exception of Wyden-Bennett) don’t address cost – no, the public option isn’t a solution (see earlier posts for why) and the ‘co-op’ option will do even less to restrain inflation. Republicans have been even more useless in this ‘debate’, distorting the various health care reform initiatives, cherrypicking provisions and then lying about the intent and potential impact, and offering no meaningful alternatives.
We don’t need health care reform, we need health care cost reform.
If we don’t fix the cost problem, family premiums will total $23,842 by 2020 according to a report authored by the Commonwealth Fund. (note that the Fund backs a strong public plan option and believes it will control costs; under the terms laid out by the Fund’s Karen Davis, it would control price but constraints on utilization are weak at best – and that’s where most inflation occurs.)
At what point will cost get so high, and the impact of those costs become so devastating, that we’ll get reform?
It could be now – but I don’t think so. Reform will happen, but the longer it is delayed, the more likely we’ll end up with a draconian change in the system – perhaps single payer, or mandated government price controls. While the opponents of reform may think they are winning, they are merely delaying the inevitable. The same is true for those pushing reform without cost control – if they pass reform, and if costs continue to rise, their political future is certain.
Aug
24
There is a very good article in The Atlantic magazine this week. Contrary to the propaganda that the President and the Democratic Leadership have been spreading as of late, i thought this article did a nice job of explaining how there really are MANY reasons, and MANY contributors (including you, me, providers, the Government and Insurers) to our current healthcare cost crisis.
It’s my view that if the current administration really was open to INTELLIGENT healthcare reform, they’d take a few steps back and invite the other side to the table for real. Then we all might get some intelligent healthcare reform!
How about this idea on how to lower healthcare costs? Give people the stimulus money specifically to join a gym and a tax credit if they actually maintain a membership. The demand for fitness centers would go up so new facilities would be built whi…ch creates more tax income for the government. People would have less stress, live healthier lifestyles and reduce the utilization and frequency of healthcare! Cash for Chunkers instead of Cash for Clunkers!!