Healthcare For All, Freedom for None

The big news last week was a joint announcement by President Obama and top Democrats that a health care reform bill will be brought to the floor of the House this summer. Mr. Obama said:

“The most significant driver, by far, of our long-term debt and long-term deficits is ever-escalating health care costs..... A new plan must uphold three principles:

1.Rising costs must be brought down.
2.Americans must be able to choose their doctor and plan.
3.All Americans must have access to quality, affordable healthcare.

We've got to get it done this year, both in the House and Senate. And we don't have any excuses; the stars are aligned.”

To anyone who considers this announcement good news, let me raise the following points:

1. The upward spiral in health care costs is directly attributable to the Federal government's involvement in the industry.

Medicare/Medicaid decides how much it will pay for services provided to its patients, and that amount has nothing to do with the cost for providing said services. For example, a routine exam may cost a clinic $200 to provide, but if Medicare determines it will only pay $75 for the exam, the clinic is stuck with a $125 loss. The clinic is forbidden to bill the Medicare patient for the difference, so instead, they charge $325 for the same exam to patients with private health insurance. Patients without insurance are billed an even higher rate for the exact same service.

Premiums for health insurance have risen as more and more Americans turn to Federal health insurance (Medicare, Medicaid, CHIP, etc), because hospitals and clinics have more losses to pass on to other customers. Private health insurers raise their rates to compensate for these higher costs. Working Americans foot the bill for the entire Federal health insurance program, and are slapped in the face with higher premiums for their own private insurance because of the inadequacies of the Federal system.

In a free society, the price for the same procedure at the same clinic, would be the same for every patient. Instead, thanks to the Federal involvement, we have a tiered pricing system. If the Federal health programs would pony up the fair market value for services, prices across the board would go down. Less government involvement is key to lowering prices.

2. No private business can compete with the Federal government.

Private insurers operate on the principle of a “shared risk pool”. One patient who needs $30,000 in services does not bankrupt the company, since there are many other healthy people in the “pool” who do not require expensive procedures. As Americans flock to Federal health programs – last month I demonstrated 10% of us already have, and that number is rising – every private insurer's risk pool will shrink, further escalating the price of premiums. The increased premiums will make private insurance unaffordable for even more Americans, who will then turn to a Federal plan. And the cycle will continue, until private health insurers do not exist and every American relies on the Federal government for health insurance.

Despite all the Democratic assurances to the contrary, this outcome is inevitable. It may not happen this year or next, but it WILL happen. Neil Armstrong might've said, “This is one small step for liberals, one giant leap for Socialism”.

Private business must provide services their customers want, at a price their customers are willing to pay, or go out of business. The Federal government must not. Private businesses must be efficient and profitable to stay in business. The Federal government must be neither.

3. “Quality” and “Affordable” are subjective terms.

Personally, I have an objection to being told by Congress which healthcare facilities are “quality” and which premiums are “affordable”. Particularly since our veterans, who deserve the very best health care our country can provide, are treated to shoddy conditions at facilities run by the Veterans Administration. Federal health care facilities are among the worst in the nation. Price and distance being equal, would any American choose to receive treatment at a VA hospital over the Mayo Clinic?

Many times distance is the factor in determining which healthcare facility to utilize. A few minutes can be the difference between life and death. With Federal guidelines on “quality”, Americans can expect some hospitals and clinics across the nation to close. If you're unlucky and live in an area without a “quality” facility nearby, you and your neighbors will be forced to travel for routine appointments and emergencies alike. Probably to a facility already straining to accommodate the increasing number of patients, and Americans, especially poor Americans, will suffer longer wait times and crowded conditions for the sake of “quality”.

The upcoming health care reform bill will undoubtedly require that all Americans have some sort of health insurance. A healthy 25-year old will be required to spend thousands of dollars in annual health insurance premiums, even if he does not visit a doctor once. I doubt that American will view the expense as “affordable”. If a young adult goes to work for a small business that doesn't offer health insurance benefits, he will be forced to choose a plan from the private market and bear the full brunt of ever-escalating premiums caused by the Federal government. Does that American have a choice? Does that sound like freedom?


It took only a few decades for the Federal health care insurance plan to go bust and require reforms. Now, our President and other Democrats believe they can provide a sweeping reform with access and quality to all in a matter of months. We need only to look back at any of the “Bailout” bills for a demonstration of what happens when Congress rushes passage of a bill. They are correct in saying the system needs reforms, but the reform needed is less government involvement, not more. The Democrat's portrayal of urgency is grounded in the current political power struggle as exemplified by President Obama's remark about the stars. For the first time in 20 years, Democrats have control of the White House, and both chambers of Congress. And they intend to not “let a good crisis go to waste” - even if it's one they created.

Know what you vote for.