If the Massachusetts experience is any guide, health care reform will have broad public support once it's in place and the scare stories are proved false. The new health care system will be criticized; people will demand changes and improvements; but only a small minority will want reform reversed.I think it's more complicated than that.
Taking a closer look at Massachusetts, in the National Journal, Marilyn Weber Serafini wrote an indispensable review of the state's reform efforts from 2006. Like the bills moving through Congress, that law included both an individual mandate and new insurance regulations. Unlike the Democrats' bill, Massachusetts tried to put off cost control so that people would see the benefits of reform before having to pay the bill. Bay state public reaction is mixed: 70 percent of physicians support the bill, but only 26 percent of the public considers it a "success."
The Bay State's reform has expanded insurance to more than 300,000 citizens and its uninsured ranks are the smallest in the country. But all is not well in Massachusetts. Insurance prices have been higher than anticipated, safety-net hospitals are struggling, there's a marked shortage of primary care physicians, and the state is struggling to keep up with health care spending in the downturn (unlike the federal government, states can't run budget deficits).
This section of the piece should be especially required reading for those who've just finished Krugman's piece:
None of this is to say that the United States will see the Massachusetts' example become our future. A public option -- even a weak public option -- might control costs better than Massachusetts has managed. The excise tax on expensive health care plans could help cost containment in two ways: It could could collect billions from insurance companies and also encourage employers and families to switch to less expensive plans, which should move more of their compensation away from employer-provided health care (which is not taxed) into income (which is). But the bolded section above is an especially acute reminder that without significant delivery system reforms, we risk not only entrenching, but also exacerbating the screwy incentives of our pay-for-service system.When the 2006 law was passed, the assumptions were that the price of insurance premiums would fall as young, healthy uninsured people joined the ranks of the insured and that fewer people would use hospital emergency rooms for non-emergencies. Those changes were supposed to save Massachusetts money.
Neither happened, according to state Sen. Eldridge [a Democrat], "at least not enough to produce the cost savings we were told we would see." Eldridge, a proponent of single-payer, national health care, notes that the law has cost the state more than expected. Spending on Commonwealth Care, the subsidized health program that the law created, is estimated at $1.3 billion in fiscal 2009, up from $1.1 billion in fiscal 2008.
The price of the four insurance plans offered under Commonwealth Care rose 9.4 percent in 2009, according to the report done for the Physicians for a National Health Program. The study's authors said that the law has done nothing to stem the overuse of high-tech care and the "underdevelopment" of primary care. "Indeed, one little-known provision of the reform actually shifted resources away from primary care by lowering Medicaid payment rates for such services, while raising them for high-tech, tertiary-care services," they said.
Finally, a note on politics. "If stakeholders feel the pain first, that could doom the bill," said Robert Blendon, a professor of health policy at Harvard. That explains yesterday's news that Dems are pushing to make more carrots available to voters in 2010:
I was just discussing this issue with colleagues Megan McArdle and Dan Indiviglio on Friday. Dan expects voters to focus on the short-term costs of health care (eg. the excise tax, the mandate, the Medicare cuts) over the benefits in 2010. Megan is especially pessimistic about the excise tax hitting cushy union benefits and creating a migraine for lawmakers. Who's right is a question we're still months, or years, away from knowing. But if we're looking to Massachusetts for lessons, everybody can agree that the first one is: Let them eat carrots.Democrats are anxious to mix the good with the bad since some of the pain would be phased in early, including more than $100 billion in industry fees that critics say could be passed on to consumers..
Under the Democratic wish-list, senior citizens would receive discounts on brand-name drugs next year. Small businesses that provide insurance would see tax credits. And a $5 billion high-risk pool would cover people with preexisting conditions..
The changes to Medicare funding, which Democrats say is aimed at redirecting wasteful spending but Republicans say would hit senior citizens, would be implemented immediately.










In order to have true health care reform, a few things should happen first.... Consult with all the Doctors, not just the AMA, which represents fewer than 17% of the currently practicing physicians in the United states. I'm sure, if asked, they would elaborate exactly what is needed in order for this reform to actually work. After all, the Dr.s are the ones who truly have the expertise to cure our ills. Secondly, without TORT REFORM, were still screwing the pooch! Ask any MD what he's paying for malpractice insurance and then make the quantum leap as to why medical fees are increasing more than 10% a year.
As far as Obama/Reid/Pelosi and the rest of the fools in Washington are concerned, they all need to be sent home and replacements provided.
I'm fairly certain most people have no real understanding of the actual cost of health care in this country. In fact, I'm afraid most even (especially) in government fail to realize the true value of the numbers with which we are faced:
The US has 305 Million citizens. Approximately 150 million of us are working (or wish to be--15 million of us can't find work at all). Health CARE *not insurance, but actual care* is going to cost us $2.5 trillion dollars this year. Half of that is Medicare/medicaid, into which working Americans pay 2.9% of their wages every paycheck, and the system is going under. The other half is private costs. Per Capita the cost of healthcare is over $8000 per person (that is every man, woman, child, elderly, sick, crippled, rich, poor, it doesn't matter). The cost per worker is $16,667, if we were to each pay in a "fair share". Doctors earn on average $150K a year, but can earn upwards of $300K depending on specialty, which is why we have a Doctor for ever 405 people, but if we break those doctors up into groups that actually mean something to our care, there is only one primary care physician for every 3000 US citizens (in the UK there is one for ever 1700 people, and in Cananda there is one for ever 1040--meanwhile their doctors constantly complain to their governments that they should earn more and often migrate to the US where greed is readily gratified, no matter the nationality). Our politicians in congress earn $192,000 a year and reward themselves with regular raises while taking generous benefits from those who can afford to to curry favor. The average American earns around $50,000 a year. The average American cannot afford health care, let alone to purchase a representative in Washington.
We should all keep these numbers in mind.
It is the cost of health CARE that needs regulation.
I agree Lu "It is the cost of health CARE that needs regulation." Why can't the Insurance Companies and Dr's get together and figure this out? I know there's a ton of waste that is going on, but I think it only gets worse if you add Government oversite. If they were doing an adequate job with Medicare/Medicaid maybe they would have a case. I know most of this is beyond my grasp, but I sure would like to see the Institution fix itself...
My prediction is that if the economy takes a turn for the worse, this entire plan is history.
The insurance companies won't be able to increase rates in a poor economy, and they will go bankrupt under the requirement that they insure everyone and never reject pre-existing conditions. If they try to raise rates anyway, companies will flee, since they can't afford it either.
Turmoil will spread from there into the hospitals and doctors, who will be finding more unpaid bills. With the Federal budget a disaster, Medicare increases will look even more problematic. The Medicare budget will go into deficit sooner than expected and add to the overall deficit.
The government will frantically patch and fill problem, but since this "plan" is just the result of a lot of bribery and horse trading, it will lose support. The public will blame any shortages of care on ObamaCare, even if most of its terms haven't gone into effect. The only response from the administration will be the same as for the stimulus -- "trust us, it will work eventually."
I have no idea what the end game looks like. Rich people will buy their own care on a private market. The government will patch something together out of the ruins of the current system. It will be a mess.
"The insurance companies won't be able to increase rates in a poor economy, and they will go bankrupt under the requirement that they insure everyone and never reject pre-existing conditions. If they try to raise rates anyway, companies will flee, since they can't afford it either.'
Maybe that's a "feature" rather than a "flaw" in the overall Obama/Dem leftist-socialist plan for the US. Given the private market failure could mean the the US government would be "forced" to take over all medical care, and we'd all end up under fully nationalized health care.
Months ago the terms of the debate changed from the cost of health care to expanding insurance and coverage. This was a mistake.
Health care premiums here in Massachusetts remain the highest in the country, and yet we're saved from bearing the true cost thanks to a very large Federal subsidy.
While we have the Federal government's deficit spending to keep us afloat, the issue for the country is ensuring that there is continued innovation in health care, including innovation in drug discovery, treatment, and health care delivery.
Our current system, including the Federal tax detectability of insurance premiums (for businesses that provide insurance to their employees), state regulation of insurance policies--in Massachusetts it's illegal to offer a policy that doesn't include fertility treatments, for example--as well as various Federal, state, and local regulations that reduce competition (on the mistaken belief that a greater supply of health care facilities increases costs), all serve to greatly reduce competition.
The idea that much greater government intervention, especially at the Federal level, will lead to a reduction in the rate of growth without an impact on availability or innovation defies reason.
Is there any other area in which greater government involvement has led to something even remotely like the results promised from the health care overhaul?
If the rest of the nation cost as much per person as Massachusetts could the nation afford it? Tort reform needs to be at the beginning not somewhere down the line. Another thing that should be included is MSAs. Not the MSAs that we have had in the past but one that would become part of a person's retirement if it was not needed. MSAs would allow people that don't high medical expense to increase their copay and thereby reduce their cost. The MSAs could be only with proof of health coverage and could be administrated by a co-op as part of a insurance plan. Another idea that could reduce costs is if hospitals would operate pm clinic which would relieve the emergency room.