6/17/2009

Fox News: ObamaCare Will Save Money? Don’t Believe a Word of It…

Here is how my latest piece at Fox News starts. If you want to see more of their pieces there, please click through and leave a comment.

President Obama is selling government health insurance to the American people as the way to save money. That government health insurance will merely provide competition to keep private insurance companies from gouging their customers.

Indeed, Obama even claimed on Monday, in a speech before the American Medical Association, that a government insurance system is essential to holding down medical costs: “if we fail to act, federal spending on Medicaid and Medicare will grow over the coming decades . . . . and impose a vicious choice of either unprecedented tax hikes, overwhelming deficits, or drastic cuts in our federal and state budgets.”

There are a couple of problems with Obama’s argument. Government is just not known for its cost effectiveness or quality. And the way for government enterprises to survive is with massive taxpayer subsidies and charging customers prices below the firm’s actual costs, driving more efficient private firms out of business. These subsidies mean that when government enterprises “win” they do so by driving more efficient private firms out of business. . . . .

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2 Comments:

Blogger Pundit said...

John,
I've already stated my objections to your argument here and here, so I won't repeat myself.

I am curious about your take on predatory pricing. I don't think I've read any comments you may have made on predatory pricing before, but do your objections to that practice also apply when it's done in other contexts? I'm thinking, for example, of the way Delta has used the practice to force competition out of its hubs, or the way some of the "big box" stores do it to locally owned stores.

6/18/2009 9:27 AM  
Blogger Iam-ru Awake said...

It's absolutely fascinating how quickly big pharma and Fox News can whip up a frenzy-fest of people who fight against their own best interests:

How providing cost reducing OPTIONS can be twisted into ---> "a government take-over of health care".

How providing free LIVING WILL CONSULTATIONS, can be twisted into ---> "Obama's death panels".

How providing PREVENTATIVE CARE INCENTIVE for doctors, can be twisted into "government coming in between you and your health care provider".

HOW FINALLY PROVIDING ADEQUATE CARE FOR AMERICANS WHO CAN LEAST AFFORD IT, IS TWISTED INTO ---> "SOCIALIZED MEDICINE"


I have one simple request for anyone reading this:
Think for one moment what will occur if the insurance lobby wins and real reform is NOT passed:

Carefully think about this and ask yourself if you are happy with your health insurance cost going up by 200% the rate of inflation year, after year, after year.

Ask yourself if you are happy with millions of jobs being shipped overseas due to high health costs in the U.S.

Ask yourself if you will be happy as the U.S. health system continues to spend a higher portion of its gross domestic product than any other country, but also continues to rank WORST in preventable deaths among industrialized nations. WORST!!!

If this really is a Christian nation, as most would claim, I am seeing fewer and fewer signs of it every day. What ever happened to, 'Amen, I say to you, whatever you did for one of these least brothers of mine, you did for me.'?

I can't help but to wonder why those angry mobs at the town hall meetings are not fighting FOR the PUBLIC OPTION rather than against it? Why they are not picketing the insurance industry that is financially incentivized to DENY your coverage (based on pre-existing conditions, etc. etc. etc.). Why medical payments are STOPPED, after a fixed period of time EVEN THOUGH YOU HAVE MADE INSURANCE PAYMENTS LIKE CLOCKWORK YOUR ENTIRE ADULT LIFE.

You want to see a REAL death panel at work? Just look into the current practices of even the most popular health insurance providers.

Get the facts, and then get real folks. If you assist in blowing THIS CHANCE for high quality health care that EVERYONE can afford, then there may never be another opportunity to once-and-for-all get this one right.

References:
http://www.nchc.org/facts/cost.shtml
http://www.americashealthrankings.org/2008/index.html
http://www.who.int/whr/2000/media_centre/press_release/en/index.html
http://www.reuters.com/article/healthNews/idUSN0765165020080108
Matthew 25:40

8/10/2009 4:28 AM  

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