MaverickVoice.com

I’ve made no secret of my position on the “Healthcare Reform” being offered by Congress. Now, the House has a bill that they’re ready to introduce that, in the span of a day, has already increased from a cost of $894 Billion to $1.055 Trillion over 10 years, covering a total of 36 Million Americans without Health Insurance.

Those of us in opposition see the plan as another way for the Government to infiltrate the daily lives of American Citizens. Its inherent creation of a “Public Option” for insurance will likely “compete” Private Insurance Companies into the ground. Taxes and fines will likely result in increases in unemployment, as small business and larger corporate employers may find themselves unable to afford the number of employees that they currently support, let alone adding additional jobs in the future. And these likely results from their plan would result in a dramatic expansion of the “Public Option” program as more and more Citizens find themselves either Unemployed or Underemployed.

As of December 31, 2008, the US News & World Report indicated a total population in the US of 305 Million people. (source: http://www.usnews.com/articles/opinion/2008/12/31/us-population-2009-305-million-and-counting.html) That means that, using simple math, this “Public Option” is intended to provide insurance for nearly 12% of the population. Add to this the number of people who are currently covered by Medicare, which was 14.3% in 2004 (source: http://www.statemaster.com/graph/hea_med_enr_as_a_of_tot_pop-health-medicare-enrollment-total-pop), and Medicaid, which was 13.9% as of June 2005 (source: http://www.kff.org/medicaid/upload/7606.pdf), this plan will result in over 40% of Americans being insured by the US Government, and that’s just assuming that the percentage of Americans covered by Medicare and Medicaid haven’t already INCREASED since these reported dates. (Yeah, right: that’s what happened.)

Now, let’s be clear about one thing: Medicare and Medicaid are SOCIALIST programs that ALREADY EXIST in our Government. Medicare is funded by FEDERAL TAXES CHARGED TO EVERY WORKER and CANNOT BE REFUNDED, and provides medical coverage to all citizens when they reach the age of eligibility or are declared permanently disabled. Medicaid is funded by STATE TAXES CHARGED TO EVERY WORKER OR, in the case of Florida, PROPERTY/BUSINESS OWNER and CANNOT BE REFUNDED, and provides medical coverage to a SELECT group of citizens based upon income status. The only people who don’t pay into this system are those who do not declare their income, and the only people who are not eligible to receive these benefits are those who earn more money than the Government says is allowable.

Now they want to add ANOTHER Government Insurance Program, which will act in the same manner as Medicaid, but on a FEDERAL level. Translation: It will be funded by FEDERAL TAXES CHARGED TO EVERY WORKER and CANNOT BE REFUNDED, and provides medical coverage to a select group of citizens based upon income status.  If you look closely, this is just a combination of the definitions of Medicare and Medicaid.

But, of course, Medicare is a GREAT program, right? Well, since I started blogging, my employment has changed from being an Appraiser to working in Medical Billing, and I do a lot of billing to Medicare. One of the main things I’ve noticed is the difference between what is BILLED and what is PAID. What is BILLED is based upon the Prices set by Medicare. Each procedure has a price, and that is submitted to Medicare for payment. Then we have the “Expected” payment. That’s right, each billing report has the Prices that are APPROVED by Medicare, followed by a much lower amount that is anticipated to actually GET PAID by Medicare, and that amount is approximately 60%.

Let’s do the math: Let’s say that you mow lawns for a living. You can set the price wherever you want and hope that people will pay it, OR you can accept a job working for a Large Company with many properties. Now, maybe you normally charge $50 to mow a lawn, but the Large Company approves paying only $35 per lawn. Working for individual companies, maybe you’ll only mow 10 lawns per week, earning $500, but, working for this Large Company, you’ll mow 100 lawns per week, earning $3,500. Kind of seems like a no-brainer, right?  Now it’s time to get that check. You’ve mowed the 100 lawns, you’ve billed the $3,500, but when you pick up your check, you only get paid $2,100. It’s still better than the $500 you would have made, but you’ve done 10 times the work. AND, in order to get the check, you’ve got to fill out hundreds of pages of forms in the EXACT manner that the Large Company expects, or you can’t even get that check!

Let’s throw another wrinkle into the mix here: Medicare is expected to be BANKRUPT by 2019, and that’s assuming that the economy doesn’t GET WORSE! (source: http://findarticles.com/p/articles/mi_m1365/is_1_35/ai_n6145432/) That means to keep Medicare going in 10 years, the Medicare Tax you currently pay (It’s currently 6.9% of your income between yourself and your employer) will either have to go up, or Government will have to issue some sort of BAILOUT of Medicare from your other tax dollars. But, if Medicare DOES go Bankrupt, at least everyone who is currently on it can join in on the Public Option, right?

Oh, and here’s another tidbit of information for you: The “Public Option” program that they’re talking about in Congress won’t even go into effect until 2013, or AFTER the next Presidential election, but the taxes will start almost immediately.

Now, let’s do a little more math, because I think that’s fun. The program will cost $1.055 Trillion over 10 years, or $105.5 Billion per year; however, it’s only funding for 7 years of Insurance Coverage, or $150.7 Billion per Year of Coverage, and that’s making the following assumptions: 1) that the number of people qualifying for this coverage doesn’t increase; 2) that the value of the dollar does not change over the next 10 years (see my post http://maverickvoice.com/2009/10/16/the-economic-balloon/); and, 3) Medicare does not become Bankrupt.  Change any one of those assumptions, and the next bit of math changes dramatically.

Based upon the numbers in the previous paragraph, in 2019 (that’s 10 years from now, folks), the “Public Option” will have a $45.2 Billion deficit. This deficit can only be defrayed by either increasing taxes or decreasing costs. Translation: Raise the Price or Deny Coverage. It’s the same method that PRIVATE INSURANCE COMPANIES have had to use to stay in business, too.

Oh, yeah, but most Doctors prefer working for Private Insurance Companies, because they get paid ON TIME and for the FULL PRICE that was agreed upon. Patients get BETTER service as a result of the DOCTORS being paid. The Doctors employ people, the Insurance companies employ people, and the PUBLIC benefits from having health care providers who are actually able to do the job. Pharmaceutical companies continue to develop better medications to combat our illnesses because it remains PROFITABLE to do so, and Hospitals remain in business because they can charge enough money to cover their costs, keeping Doctors and Nurses employed. You see, folks, it’s a whole “Circle of Life” kind of a thing. The wheel keeps turning and everyone benefits.

In my opinion, Congress’s plans for health care reform and their Public Option Plan, in particular, would be like driving on a flat tire: you might get to where you’re going, but it will take longer, and will likely damage your car in the process, which will cost you a lot more than just changing the damn tire!

So don’t surrender now. Yes, they have their bills, but they haven’t passed them yet. The fight isn’t over. The debate isn’t over. Get on the phone. Write a letter. Get involved, and make sure they know that if they pass it, they’re through. If they don’t fight against it, they’re unemployed by the next election.

Unless, of course, you LIKE the idea of relying on the Government for your Health Care. Nothing makes you feel better than Bureaucratic Red Tape.

Filed under: Finance/Economy, Politics by T. Edwin Perry