Health Reform Passes the Cost Test

Wall Street Journal ^ | David Cutler

[Blue Turtle]

Many people are worried that the health-care reform proposed by President Obama and congressional Democrats will fail to bend the "cost curve." A number of commentators are urging no votes because of this, and Republicans have asked the president to start health reform over, focusing squarely on the issue of cost reduction. These calls overlook the actual legislation. Over the past year of debate, 10 broad ideas have been offered for bending the health-care cost curve. The Democrats' proposed legislation incorporates virtually every one of them.

[Blue Turtle]

Cutler: The Obama plan will cut costs—$600 billion over the next decade. Why walk away from it?

[beethovenfan]

This is contrary to every other analysis I’ve seen - is this guy an Obama shill?

[Da Coyote]

Insure millions more and cut costs?

Bull Obama.

They must have gone to Harvard “business” school.

Remember, business school, law school, and (especially) sociology and political “science” majors are for those to whom elementary math is akin to quantum physics.

[Touch Not the Cat]

.
First of all — nobody should trust the government to save money on anything.

The very suggestion is risible.

But most of all — expanding government at the expense of industry and personal liberty is an execrable proposition -— and costs saved can never justify it.

[milwguy]

Mr. Cutler is professor of economics at Harvard and an adviser to Barack Obama’s presidential campaign. Mr. DeLong is professor of economics at University of California, Berkeley. Ms. Marciarille is adjunct law professor at McGeorge School of Law.

[throwback]

Well, I’ll say it...yes, let’s not walk, run!

[milwguy]

Health Mandates: A Talk With Obama Health Advisor David Cutler

http://sentineleffect.wordpress.com/2007/12/01/health-mandates-a-talk-with-obama-health-advisor-david-cutler/

“I’d like to start with a general comment,” Cutler began. “Two possible reasons why people don’t have health coverage are usually given. One is that the uninsured are gaming the system. The other is that they can’t afford it and don’t know where to get it. Most of the literature suggests that the explanation is mostly the latter. That means the single biggest thing we can do to help the uninsured is to make coverage affordable and accessible.”

“That’s why all the Democratic plans focus on removing excessive profits where they exist, improving information technology, and so forth,” Cutler continued. “All the plans do those things, although I think the Obama plan does the most.”

“The mandate argument is: You must buy something – but I’m not going to tell you what it is, how much it will cost, or where you’re going to get it.”

“It comes down to this,” said Cutler. “You’ll never get someone to buy something if it’s not affordable and not accessible. People just don’t do it.”

That’s an area where the Edwards campaign has taken the lead. They suggest automatic enrollment whenever an American intersects with the health care system or government services.

“You can enroll them,” Cutler replied, “and then forcibly collect the premiums. That’s one way to solve the problem. But it’s not necessary to do that.”

[SmokingJoe]

Mr. Cutler is professor of economics at Harvard and an adviser to Barack Obama’s presidential campaign

That pretty much removes any credibility from these figures. Sounds to me like another case of “1 million(or was it 2 million?) jobs saved from the stimulus” that we kept hearing.

[kabar]

Because Obamacare doesn't cut costs by expanding an entitlement program. It adds more than ten million to Medicaid, which already has 60 million enrolled. 40% of doctors don't accept Medicaid patients now because the reimbursement rate is so low. And 12% of doctors don't accept Medicare patients for the same reason.

And these estimates are based on phony assumptions, like Congress will cut Medicare payments to doctors by 21% as required by current law. These cuts are always waived.

[henkster]

In other words, more lies from liberal liars. There is no way a government run health care system will be cheaper or better.

[dforest]

Its time.

[Varsity Flight]

++++ Mr. Cutler is professor of economics at Harvard and an adviser to Barack Obama presidential campaign... ++++

Yes, sure will by money transfer (permanent tax, anytime they want it), right on the backs of the producers. Millstone right on our backs.

[CharlesWayneCT]

“The mandate argument is: You must buy something – but I’m not going to tell you what it is, how much it will cost, or where you’re going to get it.”

(I realise this is from a 2007 interview -- and didn't Obama oppose mandated insurance back then? -- anyway):

The actual bill dictates what has to be in the insurance, and gives government authority to control premiums.

I don't think it mandates where we go to "get it", but I know where we are all taking it if it passes.

[avacado]

CUTLER, DAVID M
BROOKLINE,MA 02446	HARVARD UNIVERSITY/PROFESSOR	9/23/08	$500	Feder, Judith (D)
CUTLER, DAVID M
BROOKLINE,MA 02446	HARVARD UNIVERSITY/PROFESSOR	3/27/08	$500	Feder, Judith (D)
CUTLER, DAVID M
BROOKLINE,MA 02446	HARVARD UNIVERSITY/PROFESSOR	10/24/08	$500	Feder, Judith (D)
CUTLER, DAVID M
BROOKLINE,MA 02446	HARVARD UNIVERSITY/PROFESSOR	6/21/08	$500	Feder, Judith (D)
CUTLER, DAVID M
BROOKLINE,MA 02446	HARVARD UNIVERSITY/PROFESSOR	12/19/07	$500	Feder, Judith (D)
CUTLER, DAVID M
BROOKLINE,MA 02446	HARVARD UNIVERSITY/PROFESSOR	7/18/07	$500	Feder, Judith (D)

[NavVet]

I’m going to go out on a limb and say all Obama advisors will tell you that by adding 2.5 trillion to the budget every decade, the bill still somehow “saves money” They are also likely to tell you that the Stimulus bill created 5 million jobs and that we would now have 100% unemployment but for the dear leader’s vision and leadership.

[BitWielder1]

Let's see,
1. Insure 30mil(+/-) more people.
2. Allow pre-existing conditions.
3. Add 118 new agencies to a huge federal bureaucracy.
4. Add a whole slew of new regulations.

That ought to save a trillion or 2. Yeah, right!

What they figure in is:
Raise taxes on everyone and everything.
Deny coverage for old and sick people.
(You can't be denied mandatory INSURANCE for pre-existing conditions, but you CAN be denied TREATMENT.)
People will flee to Canada or Mexico for treatment, thus reducing cost for US.
(Until they start charging the US gov't, which is what we should have done to Mexico.)
Lower salaries for doctors (so that they too flee to Canada or Mexico).

Yes that ought to work, especially if 0 explains it to us at least one more time.

Suggestion: Mandatory yearly sanity and competence tests for all gov't critters.

[goodnesswins]

YEP....Obama “advisors” include Timmy Geithner....he was so smart he couldn’t get his taxes done right....as well as many other of them.

[hobbes1]

This is contrary to every other analysis I’ve seen - is this guy an Obama shill?

Professor Cutler served on the Council of Economic Advisers and the National Economic Council during the Clinton Administration and advised the Presidential campaigns of Bill Bradley and John Kerry

[Recovering_Democrat]

Cutler must be a kook.

[Recovering_Democrat]

Mr. Cutler is professor of economics at Harvard and an adviser to Barack Obama’s presidential campaign.

And there you have it.