Free Markets, Free People

Healthcare: A 634 Billion Dollar “Downpayment?”

The Washington Post tells us:

President Obama is proposing to begin a vast expansion of the U.S. health-care system by creating a $634 billion reserve fund over the next decade, launching an overhaul that most experts project will ultimately cost at least $1 trillion.

I put those words in bold so you would understand that even the WaPo considers his plan to be “a vast expansion”.

Now, a question for you – when is the last time you remember “experts” who projected anything to do with the cost of a government program coming anywhere close to the ultimate cost? Or overestimating the cost?

So what can we really expect the true “ultimate” cost to be? Well if history is any guide somewhere around 2 to 3 times what they’re “projecting.”

And how will he pay for this?  Why the same way Medicare has – by shifting costs to patients with private insurance and letting them pick up the slack:

Obama aims to make a “very substantial down payment” toward universal coverage by trimming tax breaks for the wealthy[tax increases – ed.] and squeezing payments to insurers, hospitals, doctors and drug manufacturers, a senior administration official said yesterday.


Of course, understand that when the cost of your private health insurance benefit goes up because of all the “squeezing” (i.e. cost shifting) going on, your company will either cut benefits, raise your insurance premium or both.  And you shouldn’t at all be surprised that if given the option of dropping health care insurance for a government run system or continuing to pay through the nose for a private one, your company takes the first option.  That is also part of this plan, although unstated.


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7 Responses to Healthcare: A 634 Billion Dollar “Downpayment?”

  • I am waiting for just one person to stand up publicly and say that Obama is taking us off the cliff into ruin. The deficit this year will be $1.7 trillion – next year it could top $2 trillion. Liberals made fun of Bush for $400 billion dollar deficits – where are they now? (At home, hiding behind their “I am a Disgusting Hypocrite” blanket.)

    Obama has done more damage in one month as president than Jimmy Carter did in four years. How much more will the American people allow of this to go on before someone stands up and says, “Enough!”

  • I don’t think most people understand that hospitals charge more to privately insured people to subsidize medicare. I first heard about this on an econtalk podcast with a hospital CEO and was appalled. No wonder everyone’s bitching about the cost of healthcare (private)!

    Its like a balloon being squeezed, and there will be very little “savings” when everyone converts over to national health.

    Why don’t more people know about this?

  • Barrack and Michelle are going to do to us what Juan and Eva did to Argentina. For those that don’t remember, Argentina was at one time a stable, free,  and prosperous country, better off than several European countries in addition to most, if not all, of Latin America.

  • I haven’t heard anything on the inevitable brain drain that will occur when doctors (and potential doctors) realize they can make more money either working on a cash basis with the uber-wealthy or in other fields (in the case of med students.)

    Wouldn’t universal health care essentially make Dr. Joe Six-Pack a civil servant?  Is there a lot of golfing time when you’re working for Uncle Sam?

    • You won’t hear anything about it until it’s occurred long ago.  I actually just got off the phone with a buddy who is in his 3rd year of medical school.  He’s looking to emigrate to Australia now.

  • When the private insurance rates inevitably go up in order to pay for those uninsured among us, as is the Obama way of doing business, how long will it be before corporations across the country dump health care as part of an individual’s benefit package.  Why should they continue to pay the bill for the employee and all other on top of it, when all they got to do is drop the insurance benefit and the person reverts to the government coverage.  Small businesses, in fact, are already looking to drop this “expense” before they get called in on it so they can avoid any penalties for doing so. 

    • SShiell,

      Small businesses being able to drop insurance coverage is the way TAO and the rest of the democrat scum are tricking people into believing that universal health care will be CHEAPER for the country.  If XYZ Co. doesn’t have to pay for its employee health care, then it’s saving money, no?  GM is a perfect example: it’s going bankrupt in large part because it has to pay (very generous) health benefits to its present and retired employees.  Having Uncle Sugar pay that tab would be a big help for GM’s bottom line.

      O’ course, the money a company WOULD have paid for health insurance for its own employees (in principle as a benefit to help it entice and keep better employees) will merely be paid as taxes to provide health insurance for its employees… and for everybody else.

      But nobody thinks that far ahead.