Kerry Health Plan Price Tag in Hundreds of Billions

Cato Institute ^ | May 6, 2004 | Jonathan Block

[yoe]

"President Bush's plans for expanding health care would provide coverage to fewer than 2.5 million uninsured Americans at a cost of $90 billion, a far more modest approach than Democrat John F. Kerry's $653 billion package that would insure 27 million people, according to an analysis released yesterday," the Washington Post reports.

"The 10-year cost projections by Emory University health economist Kenneth E. Thorpe illustrate the widely divergent views of the two presidential candidates on an issue that continues to be high on the list of voter concerns."

Michael F. Cannon, director of health policy studies, analyzed Kerry's health care plans in "Mrs. Clinton Has Entered the Race: The 2004 Democratic Presidential Candidates' Proposals to Reform Health Insurance." Cannon writes: "Sen. John Kerry proposes to expand government health programs, create a national health alliance, enact new health insurance subsidies, and offer states a 'swap' that could leave them with larger than expected health obligations.

"The Kerry plan would cost a projected $972 billion from 2005 to 2013 and cover an estimated 26.7 million currently uninsured individuals. Its expected cost in 2013 -- $157 billion -- is more than twice that of the new Medicare prescription drug benefit."

Jonathan Block, editor, jblock@cato.org

[yoe]

No matter how you look at it, this "entitlement" is not constitutionally correct. The big question is - how have the Insurance companies been able to work a whole nation into this corner.

[StoneColdTaxHater]

The bigger issue is that we are not "consumers" of health care. Few people even know what an office visit costs let alone care. They just know their co-pay is $15 or whatever. When the free market is allowed to be in force costs come down and quality is maintained such as the case in laser eye surgery. The price has dropped 25% in the past few years because people have to pay out of pocket for it. In addition, putting the govt in cahrge of health care puts them in control of your very LIFE! That is more liberty that I am willing to surrender.

[SandRat]

and just how will he pay for it?

Let's see;

Repeal all the tax cuts already enacted
Find more money by stripping the Military of fund for "Peace Dividend"
Close more military bases to generate a bigger "Peace Dividend"
Enact more taxes

Not one but all would be his method.

[Mr. K]

whath happens to employee health care plans when the govt provides it for free?

In my opinion allowing companies to provide health care was the biggest mistake the govt made in this field. No one knows what it cost, so no one shops around.

The same goes for 'co-pays'. It costs $10 no matter where you buy your prescription drugs, so why shop for lowest price.

You don't buy your car insurance from your employer, do you? Or homeowners insurance? An so I bet you know how much your car insurance costs, but dont have a clue what your health plan costs. I guarantee it is in the thousands.

Now here is a question- my life insurance costs $600 per year, and it is guaranteed to cost them $250,000 to my beneficiaties when I die. But my health insurance cost almost $5000 per year, and I have not been sick in 20 years.

[Mr. K]

Oh- and $653 billion divided by 23 million people = $27,000 per person for health care

[Lizavetta]

$27,000 per person for health care

...and it will be just like the DMV, your local government school, and the post office.

STanding in line forever, having to use the doctor you're assigned to, 'service providers' taking breaks during peak times, crappy service/attitude/treatment, endless tax hikes to pay for this 'free' civil right, etc.

My advice is eat healthy and stay healthy cause you're not gonna want government medicine.

[Trust but Verify]

You are so right about this. People think they are getting something for free and they use it mindlessly. Never ask how much does that cost or is there something as good but less expensive. If people had to pay for health care like they do for everything else, they would have to make trade-offs. Until that happens, things will not change.

[sgtbono2002]

Kerry is a promising man. Health care by the Billions, 10 million new jobs, 500,000 new teachers, 100,000 new Firefighters. Yup promises are easy to make , Harder to keep. Kerry credibility Zero.

[unixfox]

My advice is eat healthy and stay healthy cause you're not gonna want government medicine.

I don't want ANYTHING the government wants to give me except what I am due. The way I figure it they owe me a sh!t load. I wouldn't trust any government entity with my health as far as I could throw it. Free healthcare is only for those that don't pay for it anyway!

[Seaplaner]

Are illegal aliens included in Mr. kerry's little giveaway? I bet they would be. Nothing like an added inducement to the USA landrush.