Health Care ReformHealth Care Reform

ObamacareObamacare

Hayak vs. KeynesHayak vs. Keynes

GoalGoal

• Attempts to take the 50 million uninsured Attempts to take the 50 million uninsured and put them in a subsidized private market and put them in a subsidized private market for health insurance, so they don’t have to for health insurance, so they don’t have to use the emergency room as their primary use the emergency room as their primary health provider.health provider.

• About 70% of bankruptcy are caused by About 70% of bankruptcy are caused by health related problems. Average bill for health related problems. Average bill for hospital care over $20,000. (includes those hospital care over $20,000. (includes those who don’t have insurance who don’t have insurance and those who and those who dodo, but can’t afford out of pocket costs., but can’t afford out of pocket costs.

• Mandates that everyone have either health Mandates that everyone have either health insurance OR pay a fine/tax.insurance OR pay a fine/tax.

How Paid forHow Paid for

• Premiums will be Premiums will be paid by allpaid by all, based on need. Huge , based on need. Huge boon to the health care industry. Most of the boon to the health care industry. Most of the currently uninsured will be subsidized.currently uninsured will be subsidized.

• Savings from money currently paid by government Savings from money currently paid by government to hospitals.to hospitals.

• More negotiation power by numbers in the new More negotiation power by numbers in the new cohort of insured.cohort of insured.

• Student loans are now managed by government, so Student loans are now managed by government, so they get fees previously given banks.they get fees previously given banks.

• Savings from Fraud.Savings from Fraud.• Savings from managed/well careSavings from managed/well care• 3% raise in taxes on long term capital gains to 18%3% raise in taxes on long term capital gains to 18%

As it is nowAs it is now

• We pay 17% of our GDP on health We pay 17% of our GDP on health insurance, double of most developed insurance, double of most developed nations.nations.

• We pay about $7500 per capita about We pay about $7500 per capita about 1/3 again of other countries.1/3 again of other countries.

• We are ranked 37We are ranked 37thth in the world for in the world for health care delivery.health care delivery.

• We are about 14We are about 14thth in Life expectancy. in Life expectancy.

ProtectionsProtections

• Covered until 27Covered until 27

• Cannot by kicked off when sickCannot by kicked off when sick

• Must insure those with preexisting Must insure those with preexisting conditions, at higher rates.conditions, at higher rates.

• Free preventive careFree preventive care

• Free Women’s health procedure, at Free Women’s health procedure, at same cost as men.same cost as men.

Health Care as % of GDPHealth Care as % of GDP

Cutting Overall CostsCutting Overall Costs

• Most modern countries have a single payer health Most modern countries have a single payer health care system, where everyone pays taxes into care system, where everyone pays taxes into government run system. No out of pocket costs, government run system. No out of pocket costs, but can be additional "Cadillac plans" if you but can be additional "Cadillac plans" if you choose choose

•Government could then mandate expenditures Government could then mandate expenditures and incentives to doctors and hospitals.and incentives to doctors and hospitals.

• Computerizing medical records (privacy concerns)Computerizing medical records (privacy concerns)•

People fear a reduction in services and/or People fear a reduction in services and/or ballooning costs.ballooning costs.

Free Market ApproachFree Market Approach

• Allow insurance companies to compete widely Allow insurance companies to compete widely across state lines. Use an APP for that: you plug across state lines. Use an APP for that: you plug in needs and click and the APP will sort the in needs and click and the APP will sort the companies by price and you can read reviews companies by price and you can read reviews from customers. Competition will create cheaper, from customers. Competition will create cheaper, more efficient plan.more efficient plan.

•This is also what Obamacare attempts to do with This is also what Obamacare attempts to do with the currently uninsured.the currently uninsured.

•Mass. did a version of this and only increased Mass. did a version of this and only increased spending by 1%spending by 1%

Single Payer alternativeSingle Payer alternative

• Most modern countries have a single payer Most modern countries have a single payer health care system, where everyone pays health care system, where everyone pays taxes into government run system. No out of taxes into government run system. No out of pocket costs, but can be additional "Cadillac pocket costs, but can be additional "Cadillac plans" if you chooseplans" if you choose

•Government could then mandate Government could then mandate expenditures.expenditures.

•People fear a reduction in services and/or People fear a reduction in services and/or ballooning costs.ballooning costs.

Major concernsMajor concerns

• Constitutionality of mandated Constitutionality of mandated purchase of a commodity.purchase of a commodity.

• Another HUGE entitlement that we Another HUGE entitlement that we can’t afford.can’t afford.

• Lack of efficiencies and quality of care Lack of efficiencies and quality of care in government plan.in government plan.

• Government chooses care: Death Government chooses care: Death PanelsPanels