John Stephen on HR 3200
Former Health and Human Services Commissioner of NH John Stephen gave a presentation on HR 3200. See the VIDEO.
WHAT WE SPEND AND HOW WE SPEND IT
Seventeen percent (17%) of our United States Gross Nation Product goes for health care.
We currently have a HYBRID model consisting of both free market and government-managed programs.
OUR CURRENT SYSTEM
Our problem is not the QUALITY of our health care but the FINANCING of it.
Almost a HALF MILLION foreigners travel to America from countries like Canada and the UK to get treatment here they could not get in their own countries.
The United States can take credit for THREE-FOURTHS of all health care INNOVATIONS made in the world.
The highest survivability rates for many chronic diseases are found in America.
The BEST DOCTORS work in the USA.
OUR UNINSURED
Our uninsured break down to 142,000 in NH. Nationally they say 46 million are uninsured but breaking this down it really includes 7-12M illegals, 10-16M who can afford it but don’t want it, and only about 10M who can’t afford it.
These uninsured are paid for by those who do pay because no one is denied at hospital emergency rooms. Hospitals are reimbursed for charity care although not at full cost.
Covering them is not going to bring down the cost, there will simply be less cost shifting.
WHY COSTS ARE HIGH
Our problem is that we do not SHOP for private or government services which makes the financing system the real issue.
Insurance costs and Medicare costs are high because of this.
Why else are these and Medicare costs so high?
States set their own policies sometimes over-regulating and stifling competition.
In Wisconsin you can buy an average policy for one person for a year for $1,254. That same policy in NH costs $3,368. The most expensive comparable plan is $8,537 in Massachusetts.
The reason for this is Mass has many insurance company mandates and regulations.
Again we have no incentive to shop for lower costs because of lack of transparency about what the costs actually are.
WHAT WILL HAPPEN IF GOVERNMENT PASSES A BILL LIKE HR 3200?
It will completely restructure the way we pay for insurance. Those with employer plans would see few changes at first. Those who are self-employed or buy their own from insurance companies will have huge changes. The government ‘exchange’ plan will be in competition with these companies. Employer plans would be closed to new enrollment after a bill is passed. In 5 years, the employee-based plans must meet all the mandates otherwise default to the public option plan.
Government will create a new tax on companies that insure their employees that will be below what it costs them currently to insure them. Thus companies would likely drop their coverage and force employees to use the government ‘exchange’ plans. The government will be paying Medicare rates and this will drive up rates for the private companies who would not be able to compete. The only GOOD thing about the exchanges is they would break down the barrier of regulation among all the states.
The question is why can’t the private companies have this regulation removed so you can buy from any company in the country?
Coverage should not be denied for pre-existing conditions but private companies should not be overregulated. The CBO will estimate that costs will grow and need to be funded.
WHAT WILL HAPPEN TO MEDICARE ADVANTAGE?
Medicare would be cut in order to pay for the $1.6-$4 TRILLION cost, they plan to cut $500 BILLION from Medicare. Physicians might then refuse to cover this part of health care. This is why seniors are rightfully concerned.
INCREASED BUREAUCRACY
See the flowchart of what the system will look like bureaucratically if the government takes over. http://www.nhteapartycoalition.org/pdf/House-Democrats-Health-Plan.pdf
UNFUNDED MANDATES WILL BREAK THE STATES
Additional costs for new populations added to the plans will be hardships on States.
THE PROBLEM
The government plan will not fix competition, transparency, or change the regulatory environment and in fact increases regulation. There is no meaningful tort reform, no choice across state lines, no shared decision making, no structural changes to Medicare that will soon be insolvent, no innovation for improving Medicaid, and there will be no free market solution with regard to the fact that we do NOT see the details outlining these changes.
An amendment could be added to just fix the problems and leave things alone for those who are happy (over 70%) but some members in congress have dug in their heels and refused to support anything but a public option and won’t include any tort reform either.
There are also several bills floating around the House and Senate that are constantly evolving but there is not one that completely represents what the final bill would be.
(Makes one wonder what on earth they were going to try to ram through by August 16th? Did they even know what they would have been voting for?)
When answering a question about the Constitutionality of the government mandating us to have insurance, it was noted that individuals, not just companies, will be penalized for not having coverage in some versions of the bill.
John said that when people read the bills and have concerns, it does have an effect on what is changed in these bills so to please get involved. For example, when Governor Palin talked about the death panels, suddenly they were taken out. If you read this bill, and you read the language of the screening process for seniors, you do have reason to be concerned no matter how the President claims to interpret it. The public option is being watered down, and the President is even talking about tort reform.
John was also concerned about the health commissioner who would NOT be elected.
The federal bureaucracy would grow substantially…as well as the number of state employees, and when you look at the increased costs, this bill is unaffordable. (see the chart linked above)
A woman stood up during the presentation and said she grew up under socialized medicine and doesn’t ever want to see that for the USA.