Obama’s Healthcare “Overhaul”

Update – The more I read about this “savings” plan, the more I realize that it is really a way for the healthcare companies to lock in profits for the next 10 years.  You know that any time an industry as big as healthcare voluntarily offers a deal to the government, it is really to benefit themselves.  So, rather than opening a real healthcare debate, they have preemptively offered a $2 trillion savings.  They say “savings” but it is really a reduction in the rate of growth of healthcare spending.  Since the current rate growth is 7%, they are saying that if it was only 1.5%, the country would save $2 trillion in 10 years.  That’s not savings.

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President Obama has announced an “overhaul” of the healthcare system that he touts will save trillions of dollars.  Big healthcare companies are on board as well, because they promise to only raise costs 1.5% a year.  That sounds great, that costs will be controlled, but why should they go up anyway?  This just guarantees a 1.5% increase in their revenue each year.  We should be making huge cuts that result in decreases, not capped increases.

Also, Obama’s plan basically revolves around digitizing our medical records to make hospitals more efficient.  I guess, over the next 200 years, that could save trillions, but what about the up front costs?  There will have to be an increase in cost to digitize all the records and buying equipment to store them.  Who will pick up the tab?  If the government does, then it falls on the taxpayer.  If the government doesn’t, then it will be passed on through premiums.  It’s a lose-lose for the American public.

The only way we will ever control costs and cut health care costs is going to be to get the government and big healthcare providers out of the game.  Until then, costs will continue to skyrocket, and the quality of care will continue to decline.

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