The American Spectator

home
ADVERTISEMENT
The Public Policy
Print Email
Text Size

The Public Policy

Behind the 8 Million Ball

With or without Tom Daschle, Congress has some dictatorial health-care reform plans in play, all designed to force everyone else to cover 8 million uninsured Americans who are already covered.

(Page 2 of 3)

The Practice of Medicine

The so-called stimulus bill that just passed the House of Representatives included $1.1 billion in funding for a Federal Coordinating Council for Comparative Effectiveness Research (CER). The Council is to conduct so-called federal comparative effectiveness research in regard to health care services. The sponsors of that provision explained:

How is it that the studies of this federal bureaucracy could lead to some medical items, procedures, interventions and treatments no longer being prescribed? When the Council issues a finding prohibiting a medical item, practice, procedure or treatment, the HAAs across the country would then be expected to force their insurers to follow it, by refusing reimbursement for any such item, procedure, intervention or treatment. Ultimately, the HAA could throw out any recalcitrant insurers. But insurers generally do not need too much encouragement to deny reimbursement.

What if your doctor disagrees with the Washington bureaucracy about whether an item, procedure, intervention or treatment is effective, or worth the cost, in your case? That doesn't matter, because he is no longer in control of your care or his practice. The federal bureaucracy is. In fact, he had better keep his mouth shut, or he could be banned from the insurer's preferred provider network altogether, or even have his license yanked, for not maintaining quality standards of care, or following best practices, or upholding cost effective medicine.


The New Health Bureaucrats

Under these proposed health care reforms, the government will dictate to insurance companies what they must cover, what they can charge, who they can accept as customers, and every other aspect of their "business." They are forced to accept whoever shows up and asks for their coverage, no matter how sick or costly they may be, for the same premiums as young, healthy, virtually cost free patients. These insurers will be allowed just enough compensation to keep them from quitting, but these regulatory features will still make their insurance quite costly. These insurers are reduced to mere bureaucrats doing clerical work for the government.

Virtually the same is true for doctors and hospitals. Under this legislation, they will be working for the government, not for the patients, because it is the government that is paying them, not the patients. They will consequently follow the directives that come down from the federal bureaucracy as to how to treat their patients and "practice" medicine, regardless of whether they think the directives make sense in the case of any particular patient. In fact, these doctors and hospitals would no longer be medical professionals, but manual laborers, following the instructions of the federal bureaucracy.

And they will be compensated as such. Every year, their reimbursements will be squeezed a little more, until they are making barely enough to keep them from quitting. Indeed, if the government can offer young graduates from foreign medical schools admission to the U.S. if they will work for less, the government would be glad to replace current doctors, surgeons and practitioners with these newcomers. That would be so "cost effective," of course. If patients feel these foreign trained, inexperienced newcomers do not provide the same quality of care as traditional, experienced American doctors, they can file a complaint with the Federal Coordinating Council in Washington.

The fundamental problem is that these health care reforms turn control of health care completely over to the government. Every aspect of the system is effectively run by government: insurers, doctors, hospitals, and everything else. The patient is left with no real power, especially those who are sick and really need health care. If they don't like the way they are treated, they can leave and take their costs with them. The threat to leave would only be effective for young, healthy, cost-free patients, who the insurers and their preferred provider networks would attend to most assiduously.


Health Care Rationing and Collapsing Quality of Care

Under these health care reforms, patients have no incentive to keep their demands for health care services down. They will instead seek to utilize the coverage they are paying hefty taxes for, driving up health costs. Voters will then start to scream as the income taxes they are forced to pay for health care premiums increase with these rapidly rising costs. Politicians will consequently pressure the Federal Coordinating Council, the HAAs, and the insurers to do more to keep costs down. More top quality practices and treatments will consequently be dropped, and approval for new innovations as cost effective will be slowed sharply. These bureaucracies will put more pressure on doctors, hospitals and other practitioners to keep costs down, and that will be further enforced by lagging reimbursements not keeping up with costs. So the practitioners will reduce the quality of care, and access to care to reduce costs. That is where the waiting lists come in. And if patients complain, the politicians can hide behind the Federal Coordinating Council, the HAAs, the insurers, and those dastardly doctors and hospitals.

In this environment, who will invest in new state of the art, modern, top of the line facilities? That is why facilities always seem to deteriorate in countries that follow these socialized medicine policies. And who will invest in the research, development and production of new, innovative breakthroughs, medical technologies, pharmaceuticals, etc.? Will new innovations be approved? After how long? Will they then be adequately reimbursed in this hostile environment? That is why new advances always lag badly wherever these socialized medicine practices prevail, further reducing quality.

Advocates of these reforms argue that competition among insurers will keep costs down. But insurers have no power to keep costs down unless they have the power to deny care. Which they will demand from the politicians more and more to stay in business and remain profitable. And the politicians will be glad to give them those powers in the name of cost effectiveness. Do you see the fascism yet?


All So Unnecessary

This health care nightmare, which is another assault on the standard of living of the American middle class, is all completely unnecessary to deal with the problem of the uninsured 8 million (less than 3% of the U.S. population) who are not illegal immigrants, already eligible for government health programs, or in families earning over twice the poverty line. I don't believe in anyone suffering or losing their long-term health because they can't afford medical care. But it is not necessary for the government to take over all health care to deal with this problem.

Page:   12 3  

topics:
Health Care, Congress

About the Author

Peter Ferrara is Senior Fellow at the Carleson Center for Public Policy, Director of Entitlement and Budget Policy for the Heartland Institute, and General Counsel of the American Civil Rights Union. He served in the White House Office of Policy Development under President Reagan, and as Associate Deputy Attorney General of the United States under the first President Bush. He is the author of America’s Ticking Bankruptcy Bomb, now available from HarperCollins.

Letter to the Editor View all comments (35) | Leave a comment

JJ JR| 2.4.09 @ 11:01AM

Y'all,

Cross this Gov't health care vector, superbly chronicled by Peter in this article, with our failure to control illegal immigration--both of which are devised by the left to build their political power--and we have I believe the end of the era of American Exceptionalism and the vibrant, free respresentative republic we all know.

Yes Peter--I see the fascism!

Pingback| 2.4.09 @ 12:38PM

What Universal Health Care Will Look Like | The Blog of Record links to this page. Here’s an excerpt:

…WWII Archives February 2009 January 2009 December 2008 November 2008 October 2008 Pages About What Universal Health Care Will Look Like By: Al Published: February 4th, 2009 Congress’s dictatorial health-care reform plans  designed to force everyone else to cover 8 million uninsured Americans who are already covered. SHARETHIS.addEntry({ title: "What Universal Health Care Will Look Like", url: "http://www.the…

Deane Waldman, MD MBA| 2.4.09 @ 2:18PM

Yes, clearly a bad choice but ALL decisions using the current system will be/are flawed. We need a new system and new way to look at healthcare (as investment not cost item). We must stop trying to "fix" healthcare by addressing only the financing. See website www.theystemMD.com. To CURE (not palliate or anesthetize) healthcare we need a nat'l dialogue followed by a plebiscite to create a consensus for a totally new system. Medicine as changed radically since 1890 but the system has not. Therefore, radical change is indicated and it cannot be imposed from above.

Len| 2.4.09 @ 2:45PM

A Fatal Flaw in this article; The real issue here is that it IS ALL ILLEGAL..YES!!..ILLEGAL. There is no absolutely no authority given by the CONSTITUTION OF THE UNITED STATES OF AMERICA for any of these actions. If people would stop thinking in the narrative they've been trained to think in and actually read the Constitution they would see that Article 1, Section 8 is very narrow in scope and certainly gives Congress no power to force people into "positive" life choices,nor to force PRIVATE entities to provide for others, and most certainly no authority to take upon itself the responsibility to care for one person at the expense of another. These are criminal actions that should be prosecuted or a la 1775-1776 revolted against.

Dustoff| 2.4.09 @ 3:28PM

Let's see in today's news and man in Japan dies as medics rush him to 14 different hospitals when none of them could take care of him. He bled to death.
England has it's medic units sit outside hospitals with hurt people in them because they can't go higher then the system allows the hospitals to take in. As a retired Fire/Medic this makes me sick and you fools want government run healthcare.

Luonne Dumak| 2.4.09 @ 6:09PM

There is very good book by Dr. David Gratzer called The Cure. There are many ways to begin changing Health care. First allow health insurance to be sold across state lines. Now Health Ins. is very highly regulated. You should beable to purchase insurance at the lowest cost to you. Next Stop the Goverment from mandating what Insurers must insure. Let there be a cafeteria style for buying Insurances. Young people should be able a high detuctible plan. Next start letting people know the cost of tests and procedures so they can compare different Hospitals and clinics. Most important is Tort reform, its has been proven that bogus and unnecesary law suits add at least 10% to the cost of medicne. Dr.s make people go throught many unnessary tests to avoid law suits. There are more things that can be done I'm sure but those are a few ideas. There are to Medical procedures that have gone down in price over the years, eye sugery and plastic sugery. These are not covered by insurance and are more competitive. in the market place.

Jeremiah| 2.4.09 @ 7:28PM

Ferrara's numbers on the numbers of uninsured are entirely false.

The number of uninsured CITIZENS is over 40 million.

Most of the uninsured WORK, but they work at jobs that don't offer insurance.

This is a sick, stupid, weak, costly, and foolish way to do things.

Do the uninsured get sick? Oh, yes. Do they see doctors? You bet. How? They go to emergency rooms, the most expensive way to deliver health care. Who pays? You do.

Be smart people.

Claire Solt PhD| 2.4.09 @ 11:37PM

It is a misnomer to call American medicine a system. It is free enterprise of indep;endent businesses. This is the best way to insure that competition keep;s costs down and introduces innovations.
Can the government which can't implement computers in its agencies design and implement a system? I read that they haven't been able to make medical records work at the VA. So, let's go ahead and spend $24B to spread it nationwide.

People should really take a close look at how the government does with the programs it has. There are lots of problems.

Steve L| 2.6.09 @ 11:30AM

Peter, in light of the markets' performance of late, can you please comment on your previous position (while part of the Advisory Council on Social Security) that Social Security funds should be invested in part in the stock market? Do you still advocate that position or have you rethought it?

Pingback| 2.25.09 @ 8:34AM

Dental Financing - RTI Biologics Announces 2008 Year End, Fourth Quarter Results - MS links to this page. Here’s an excerpt:

…for permission to cancel its salaried retiree health care and life insurance — a move that would end benefits for 15,000 people and save the Troy-based auto supplier more than $70 Behind the 8 Million Ball - Spectator.org There are roughly 8 million people in America without health insurance, who are not illegal immigrants, already eligible for coverage under Medicaid or other government health programs,…

Pingback| 2.25.09 @ 2:36PM

Dental Financing - Court allows Delphi cuts - Detroit News « Dental Financing links to this page. Here’s an excerpt:

…Corp. to end salaried retiree health and life insurance benefits for 15,000 people, the starkest example of the auto supplier’s mounting financial woes. U.S. Bankruptcy Judge Robert Behind the 8 Million Ball - Spectator.org There are roughly 8 million people in America without health insurance, who are not illegal immigrants, already eligible for coverage under Medicaid or other government health programs,…

Pingback| 2.25.09 @ 3:51PM

Dental Financing - Behind the 8 Million Ball - Spectator.org « Dental Financing links to this page. Here’s an excerpt:

…repeat-y top; border: none; } Dental Financing « Dental Financing - Court allows Delphi cuts - Detroit News Dental Financing - Behind the 8 Million Ball - Spectator.org Behind the 8 Million Ball - Spectator.org There are roughly 8 million people in America without health insurance, who are not illegal immigrants, already eligible for coverage under Medicaid or other government health programs,…

Pingback| 8.11.09 @ 10:01PM

terryfrank.net » A Gang By Any Other Name Is Still A Gang links to this page. Here’s an excerpt:

…so crazy it might work. What about our a policy guru from the free market perspective?  A former advisor to three Presidents like Peter Ferrara?  Ahhhh. Peruse his critique and displeasure by clicking here. Here’s just one teensie-bitsy portion: Nevertheless, workers would be required to pay the premiums for such coverage as part of their federal income taxes, with the IRS to chase after them if…

yttyr| 11.23.09 @ 4:52AM

TOD Converter Mac,
TOD File Converter Mac

wholesale| 9.20.11 @ 7:17AM

A good post.
Do you know tablet computers . Need a tablet pc ? We supply kinds of tablet pcs, google android tablet, windows tablets. Wholesale tablets from China.

Leave a Comment

N.B. We encourage readers to share and discuss their thoughtful and relevant comments about this Spectator article. Comments are routinely monitored and will be deleted if profane, bigoted, or grossly impolite. Please be respectful. (And don't feed the trolls!) Thank you.

Related Articles

More Articles by Peter Ferrara

More Articles From The Public Policy

http://spectator.org/archives/2009/02/04/behind-the-8-million-ball
ADVERTISEMENT

Clip of the Day

Most Popular Articles

Who Castrated Ann Coulter?

David Catron | 2.6.12

The Delousing of a Movement

R. Emmett Tyrrell, Jr. | 2.9.12

Bigoted Barack, Red in Tooth and Clause

George Neumayr | 2.10.12

Justice Ginsburg Should Resign

William Tucker | 2.8.12

Coulter Care

Peter Ferrara | 2.8.12

Unsafe at Any Smoke

Eric Peters | 2.10.12

Middle-Aged Man Takes a Holiday

Christopher Orlet | 2.9.12

ADVERTISEMENT