Bob McCarty Writes

Yesterday, Maggie’s Farm published a great post by Bruce Kesler that explains the Top 10 specious premises for ObamaCare.  Below are the summary paragraphs for the first five premises (link at end of this post):

1. Comparing US Health Care To Other Developed Countries: Those pushing for government-run health care are fond of comparing the US unfavorably to other developed countries with heavier government-run or directed systems. Actually, the US is more successful on comparative costs, efficiency of resource use, and outcome.

2. US Health Care Spending Is More Than We Can Afford: As it has become more evidenced that the US does not compare unfavorably, the push for heavier government involvement has shifted toward saying we can’t afford the current and future costs. The affordability claim is exaggerated. We can afford more than previously, have chosen to, and benefited.

3. Reform Overhaul Will Yield Major Savings: Price Waterhouse analyzed the primary cost drivers in health care. Leading the pack are new technologies, public demand for broader coverage and access, and defensive medicine. ObamaCare is not proposing restraints on lawsuits, tort lawyers being a major constituency. Health care consumers’ demands for fast access to the latest and best is not contradicted.

4. Increased Evidence-Based Medicine And Health Information Technology Will Significantly Improve Care and Reduce Costs ObamaCare proposes major increases in the use of evidence-based medicine. There is a strong case for increased analyses of the effectiveness of alternative treatments to have more evidence-based (also called performance-based or comparative-effectiveness) medicine. The above Price Waterhouse report cites a study that estimates as much as 30% of health care spending is excessive due to overuse, misuse and waste. It cites another study that defensive medicine increases health care spending by 10%. However, if major benefits are to emerge, they will be very expensive to find, seriously troubling and possibly dangerous to administer, and a long time coming. We should move very carefully and not faddishly rush pell-mell into this sphere.

5. Present Administrative Costs And Insurer Profits Are Too High: The above Price Waterhouse analysis finds 86% of premiums being paid out for claims and an additional 5% for consumer services like prevention, wellness, care coordination, education, and information systems. Government compliance and reporting requirements cost another 6%. That leaves 3% for profits and reserves needed to generate added investments. Indeed, in 2008, Fortune Magazine’s compilation of industry profitability had health care insurance and managed care well behind some commonly assumed to have low profits such as railroads (12.4%). Discretionary entertainment (12.4%) is more profitable than necessary health insurance.

To read the complete Top 10 list at Maggie’s Farm, click here.

Hat tip:  Gateway Pundit

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