Prescription for Disaster

Cost-Shifting Does Not Justify ObamaCare

Monday, May 07, 2012
The idea of cost-shifting (that the uninsured need uncompensated care, the cost of which is then transferred to others in need of care) is often used as a justification for ObamaCare. Jeffrey Singer, a practicing physician explains the truth about cost-shifting and concludes that this problem does not justify ObamaCare:

Singer writes:

"A major justification by President Obama for the individual mandate in the Affordable Care Act, which requires everyone to buy health insurance, is that every time an uninsured patient receives care in an emergency room, doctors and hospitals shift the cost to those of us who have insurance. But the impact of such cost shifting is vastly overblown and government, through the legislation, makes the problem worse, not better."

Read Dr. Singer's full article here.

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Democrat Admits Obama Administration is Ignoring Constitution

Wednesday, March 07, 2012
Democratic U.S. Representative Kathy Hochul (NY-26) admitted to her constituents that the Obama Administration was "not looking at" the Constitution when it created the contraception mandate.

 

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Free Isn't Free (When it Comes to Contraception)

Tuesday, February 28, 2012
President Obama is forcing insurance companies to provide certain services for "free".  But if history has shown us anything, the government is never able to provide anything for free - even when it makes others actually pay the costs through mandates. 

Insurance companies are very good at assessing actuarial information - including the impact that government regulations and mandates - and how that information will affect insurance premiums. While the Obama Administration has suggested that mandating coverage for certain services (like contraceptives) will help insurance companies avoid costs related to unintended pregnancies, the insurance companies don't agree with the Obama Administration's ultimate economic conclusion.  

According to one article, "a new survey of 15 large health plans shows they are dubious of such savings.
Asked what impact the requirement will have on their costs in the year to two years after it goes into effect, 40 percent of the participants said they expect the requirement will increase costs through higher pharmacy expenses."  An additional 33.3 percent of the insurance companies said they weren't sure the President's assessment was accurate, 20 percent said the Obama Administration's would not affect their insurance plans but that was because the insurer already included contraceptives in their premiums. Only 1 insurance company out of 15 actually agreed with the White House's assessment of the economic impact of Obama's policy.

Ultimately, this issue is not about contraception, it is about whether government should be able to dictate economic decisions to businessess - forcing them to buy and sell certain products as part of their business model and regardless of what that impact may have on costs and on their consumers. Government is incapable of assessing the issues related to cost with the same effectiveness as those participating in the free market - meaning both business and consumers. 

You can read the full article here.

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Krauthammer Explains ObamaCare vs. The Constitution

Saturday, February 25, 2012
In a wonderfully written piece, Dr. Charles Krauthammer explains how ObamaCare is fundamentally at odds with the United States Constitution. Here is an excerpt from his article:

First, its assault on the free exercise of religion. Only churches themselves are left alone. Beyond the churchyard gate, religious autonomy disappears. Every other religious institution must bow to the state because, by this administration's regulatory definition, church schools, hospitals and charities are not "religious," and thus have no right to the free exercise of religion -- no protection from being forced into doctrinal violations commanded by the state.

Second, its assault on free enterprise. To solve his own political problem, the president presumes to order a private company to enter into a contract for the provision of certain services -- all of which are free. And yet, this breathtaking arrogation of power is simply the logical extension of Washington's takeover of the private system of medical care -- a system Obama farcically pretends to be maintaining.

Under ObamaCare, the state treats private insurers the way it does government-regulated monopolies and utilities. It determines everything of importance. Insurers, by definition, set premiums according to risk. Not anymore. The risk ratios (for age, gender, smoking, etc.) are decreed by Washington. This is nationalization in all but name. The insurer is turned into a middleman, subject to state control -- and presidential whim.

Third, the assault on individual autonomy. Every citizen without insurance is ordered to buy it, again under penalty of law. This so-called individual mandate is now before the Supreme Court -- because never before has the already inflated Commerce Clause been used to compel a citizen to enter into a private contract with a private company by mere fact of his existence.

This constitutional trifecta -- the state invading the autonomy of religious institutions, private companies and the individual citizen -- should not surprise. It is what happens when the state takes over one-sixth of the economy.

You can read the full article at TownHall.com


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Federal Court Protects Economic Liberty in HealthCare

Thursday, February 23, 2012
Yesterday, a federal court struck down a Washington state law that required pharmacies to dispense drugs such as Plan B and ella (which are widely regarded as abortifacients or abortion-inducing drugs). Several pharmacists had sued the government arguing that the state law infringed on their religious beliefs in violation of the First Amendment. The court agreed. Read the Becket Fund for Religious Liberty's press release here.

Having read many comments on this decision from people who have argued that pharmacists should be forced to violate their conscience in order to keep their jobs, I would respond thusly:

Should government have the power to tell any business what products it must sell and dictate the manner in which those products should be sold? Setting aside the idea of religious faith for a moment, do we want government to have the power to dictate the specifics of how every business has decided to serve its customers. Should a business be forced by government to spend its resources to purchase and stock  a product regardless of whether there is customer demand?  At stake here is also the principle of economic liberty and personal autonomy. A business should be free to decide what products it will choose to sell and which it will choose not to sell. 

In most cases, businesses will make those decisions based on economic principles - a profit-motive and supply and demand (both of which should be viewed as noble considerations, not vilified as seems to be common in the current political culture). But in cases where a business person is concerned about more than profit and their values lead them to make a decision that is not driven by economics and in fact may run counter to the "best" economic decision, that business owner must be free to follow the dictates of their conscience. 

Otherwise, we run the risk of letting government micro-manage every aspect of our economy, to dictate matters of supply and demand, to set prices, to govern the inventory decisions of each and every business. We have tried this in the past and with spectacular failures as a result. FDR demonized utility companies and pushed for government intervention and control - it drove America further into the depression. Nixon tried the same thing with price controls on oil and it lead to an energy crisis. 

Ultimately, government should be the last entity to make these kind of decisions. Their track record is so poor we would be better off letting each business owner make their own decisions and letting the free markets reward business. This is a far better method for allocating capital resources (and birth control) than any government mandate. 

UPDATE: Senator Jim DeMint has an excellent article in The Washington Examiner about the broader issues of ObamaCare and individual liberty. Read his commentary here.


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Economics and the Future of Medicine

Thursday, February 23, 2012

A Line of Sight has a must read article written by Dr. Kelly Victory about the current (and future) economics of medicine. ObamaCare takes a dire situation that has had doctor on the verge of closing their practice and makes the situation much, much worse.  This article is definitely worth a read.

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Burr-Coburn: The Best Medicare Reform Plan to Date

Wednesday, February 22, 2012
Avik Roy of Forbes Apothecary has commented on the Burr-Coburn Medicare reform plan calling it the best reform plan introduced to date.  According to his column, their plan achieves each of six important principles for reform: "(1) preserving benefits for people aged 55 and older; (2) making sure that retirees share more of the costs of their care, and thereby a stake in prudent consumption; (3) means-testing; (4) indexing the Medicare retirement age to life expectancy; (5) aggressive fraud prevention; (6) allowing seniors to shop for value in insurance plans."

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Another Amicus Brief from Free Market HealthCare Advocates

Friday, February 17, 2012
FreedomWorks has filed an amicus brief in the mulit-state lawsuit challenging ObamaCare. You can read the full brief here.

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Reaction to the President's "Compromise" on His Contraceptive Policy

Tuesday, February 14, 2012
Americans have been rallying in opposition to the Obama Administration's contraceptive decision. The furor was great that the President held a press conference this past Friday in which he announced a "compromise." It was nothing of the sort - the President merely repackaged his original policy and tried to dupe the American people into believing otherwise. 

Here is a sample of the reaction of knowledgeable people in Washington to the President's false-compromise.

Congressman Jim Jordan (R-OH):
“This ObamaCare rule still tramples on Americans’ First Amendment right to freedom of religion. It’s a fig leaf, not a compromise. Whether they are affiliated with a church or not, employers will still be forced to pay an insurance company for coverage that includes abortion-inducing drugs. This is not just a problem for church-affiliated hospitals and charities. Under these rules, a small business owner with religious objections to abortion-inducing drugs and contraception must either violate his religious beliefs or violate the law. The liberal Obama administration thinks its political goals trump the religious faith of American citizens. That isn’t right, fair, or constitutional.”

Hannah Smith, Senior Legal Counsel for The Becket Fund:
“This is a false ‘compromise’ designed to protect the President’s re-election chances, not to protect the right of conscience. Hundreds, if not thousands, of religious institutions are still left out in the cold and will be forced to violate their religious convictions.”

Senator Mitch McConnell (R-KY):
“While the White House is trying to walk away from its original mandate, one thing this debate has made perfectly clear is that the administration believes the Constitution takes a back seat to its ideological goals. They’re not sorry they violated the First Amendment....  This whole episode demonstrates why politicians should not be the ones to make determinations about religious beliefs and is just another reason why the deeply flawed health law needs to be repealed. Whether it is forcing people to buy government-chosen health insurance, or injecting Washington’s oversight into nearly every aspect of people’s lives, the Obama administration clearly believes that the Constitution is an inconvenience, not a guiding principle, in their implementation of the health law."

UPDATE:
Michael Cannon (of CATO) recaps the initial WaPo story on the President's "compromise" which details exactly how hollow the President's revised policy is. Read his post here.

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Don't Lose Sight of the Fact that Government Healthcare Poses More than Monetary Costs

Thursday, February 09, 2012
Michael Cannon of CATO has a well-reasoned post about the misguided efforts of people who advocate for a government guarantee of healthcare (or universal coverage). What is lost in their advocacy, is the fact that there are costs and trade-offs for the policies the "universalists" are demanding. 

As Cannon writes: "In the end, that very government guarantee ends up leaving people with less purchasing power and undermining the market’s ability to discover cost-saving innovations that bring better health care within the reach of the needy. That’s to say nothing of the rights that the Church of Universal Coverage tramples along the way: yours, mine...."

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