Wrong-Way Health Care 'Reform' Could Actually Increase Spending

IBD Editorials ^ | June 12, 2009 | ROBERT SAMUELSON

[Kaslin]

It's hard to know whether President Obama's health care "reform" is naive, hypocritical or simply dishonest. Probably all three.

The president keeps saying it's imperative to control runaway health spending. He's right. The trouble is that what's being promoted as health care "reform" almost certainly won't suppress spending and, quite probably, will do the opposite.

A new report from Obama's own Council of Economic Advisers shows why controlling health costs is so important. Since 1975, annual health spending per person, adjusted for inflation, has grown 2.1 percentage points faster than overall economic growth per person. Should this trend continue, the CEA projects that:

Health spending, which was 5% of gross domestic product in 1960 and is reckoned at almost 18% today, would grow to 34% of GDP by 2040 — a third of the economy.

Medicare and Medicaid, the government insurance programs for the elderly and poor, would increase from 6% of GDP now to 15% in 2040 — roughly equal to three-quarters of present federal spending.

Too Much Medicine

Employer-paid insurance premiums for family coverage, which grew 85% in inflation-adjusted terms from 1996 to $11,941 in 2006, would increase to $25,200 by 2025 and $45,000 in 2040 (all figures in "constant 2008 dollars"). The huge costs would force employers to reduce take-home pay.

The message in these dismal figures is that uncontrolled health spending is almost single-handedly determining national priorities. It's reducing discretionary income, raising taxes, widening budget deficits and squeezing other government programs.

Worse, much medical spending is wasted, the CEA report says. It doesn't improve Americans' health; some care is unneeded or ineffective.

[Right Wing Assault]

Could??

[JasonC]

Only a leftist government could possible say, let alone think, that giving away as much of something as anyone wants for free, could reduce its cost to everyone else.

[socialismisinsidious]

Socialized Medicine aka Universal Health Care PING LIST

FReepmail me if you want to be added to or removed from this ping list.

[RocketMan1]

In reply to the title of this article:

“YOU THINK?!!”

[Jim Noble]

some care is unneeded or ineffective

Which is always perfectly obvious.

After the fact.

[secretagent]

Get the government out “health care”. That will bring costs down.

[TBP]

It absoultely WILL increase spending and decrease service, which is what the liberals want.