By Harris Sherline | Monday, September 22nd, 2008 at 12:01 am
Is America’s health care system failing? A lot of people seem to think so. For one thing, there are now an estimated forty-seven million people without health care insurance. And, the solution to the problem invariably involves spending more money.
P.J. O’Rourke said, “If you think health care is expensive now, wait until you see what it costs when it’s free.”
Do you think that Barack Obama has the answers to providing health care in America? Or, John McCain? How about George W. Bush? Hillary Clinton? Or, for that matter, any politician? Do they really have the answers?
If they can’t do it, then how about the politicians in Canada or Great Britain? Have they solved the problem in their countries? Some people believe they have. However, in England, where the private practice of medicine was outlawed when socialized medicine was first established there, they were eventually forced to permit the public to go outside the state’s system to obtain health care from private physicians.
The story is much the same in Canada today. Many Canadians come to the U.S. for emergent needs, such as bypass surgery, because the waiting time in Canada is interminable, often many months before their citizens can get life-saving treatment when they need it. And, it can take many months to get an appointment with a doctor in some communities.
All state-run health care systems have one thing in common: rationing. Not necessarily involving the use of ration cards, but rationing nonetheless. That is, rationing of resources. The cause is a devilishly simple principle that is present in all nationalized health care programs: it’s free, or so low cost that it’s almost free. Basic economics clearly demonstrates that whenever something is free, the demand quickly becomes unlimited. The lower the price, the greater the “demand.” Give something away that people want and the “demand” will be virtually unlimited.
However, the flip side of unlimited demand is a shortage of supply. And, not having enough doctors, nurses, or equipment, such as CT Scanners and MRIs, eventually leads to rationing. Without enough health care to go around, rationing becomes a necessity. That’s what has been wrong with nationalized health care in England, Canada, Germany, Japan, the former USSR, everywhere it has been tried.
If there are no politicians who really know what should be done to solve our health care problems why do we keep expecting them to come up with answers?
Just exactly what are the problems? Too many uninsured? Too high cost? Poor quality? Lack of availability? All of the above? Do you know? Or think you know? And, what have been the government’s (read politicians’) solutions to date?
National health care (socialized medicine) in one form or another is the primary health care policy that is gradually being adopted in America. And it is slowly but surely lowering the quality of the health care we are getting. Talk to any doctor you trust and see if they don’t agree. They will tell you that they are working much longer hours for far less money, that many M.D.s are retiring early because they are fed up with the government and insurance company bureaucrats telling them how to practice medicine. There is a growing shortage of doctors and nurses.
You may say, we don’t have socialized medicine in America! Perhaps not yet, but we’ve been headed in that direction for a while, and we seem to be going further down the path as the years progress. It’s a slippery slope. For example, consider Medicare.
But, Medicare is not socialized medicine, you may insist.
Unfortunately, it is, or is headed that way. Why? For one thing, it’s a system that is based on price controls.
Price controls have never worked, ever, in any society at any time in history. They were tried as early as 301 A.D. by a Roman emperor, Diocletian, who implemented price controls under penalty of death. But, even that didn’t work. What price controls do is cause shortages, increase costs and disrupt markets.
Look at what has happened to the Medicare program since 1984, the year the government changed its method of reimbursing hospitals from cost plus to a system called DRGs (Diagnostic Related Groupings). DRGs is a method of classifying illnesses and assigning a comparative value and a specific authorized payment to each. At that point, many hospitals began to lose money because the government started dictating the prices that are paid for inpatient care.
Around 70% of most hospitals’ patients are seniors, whose bills are paid by Medicare. The Federal Health Care Financing Administration (HCFA) determines, in its sole discretion, the prices that can be charged for seniors’ inpatient hospital care, and then pays only 80% of those amounts. The differences between a hospital’s standard fees for service and the amounts that Medicare pays must be written off. They cannot be collected from the patient. That’s price control.
Furthermore, because Medicare payments are determined solely by the government, annual Cost of Living increases are limited, generally to between one and two-and-one-half percent, in spite of the fact that hospital costs have been rising for years at an annual rate of anywhere from six to fourteen percent.
Between health insurance contracts (HMOs) and Medicare limits on their charges, hospitals generally collect only about 50% of their total billings. The rest is written off. The result of all this is predictable: many of them are losing money. About one-third of all hospitals in California are currently operating at a loss. For the non-profit hospitals, part of the loss is made-up through fund raising, but it’s not enough. With a national health care plan, at some point, many hospitals would either be closed or services curtailed. That has been the pattern in every country that has nationalized its health care. Nonetheless, that seems to be where we are headed, in spite of compelling evidence that it doesn’t work.
Like the proverbial frog being cooked in a pot of cold water, Americans are gradually becoming aware that the quality of their health care is declining, even as costs continue to go up. It just hasn’t sunk in yet. When it does, they will undoubtedly be led into believing government has the answers and demand more government control, regulation and oversight. And, our politicians will be only too willing to oblige.
Nationalized health care in America is gradually overtaking the free market, and we are all being slowly cooked in the pot of government intervention. So, don’t be surprised at the type of health care program we get as time progresses. Whatever your own conclusions, remember one thing: that our politicians won’t have to rely on whatever health care plan they establish for everyone else. As usual, they will have their own, superior plan. And, it will not be a part of the nationalized health care system that the rest of us will be required to use. If you doubt that assertion, just look at the health care plan that our Federal legislators and government employees have now.
© 2008 Harris R. Sherline, All Rights Reserved
Harris Sherline is the publisher and editor of Opinionfest. He is the owner and editor of The Wisdom of America's Elders, a resource website and forum for seniors. His articles also appear in the California Chronicle, GoPUSA, and the Santa Ynez Valley Journal.
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Filed under: Barack Obama, CT Scanner, Canada, Clinton, DRGs, Diagnostic Related Groupings, HMO, Health Care Financing Administration, MRI, McCain, P.J. O'Rourke, economics, health care, health care system, medicare, price control, rationing |
