A Chicken in Every Pot – Or Something Like That

9 Trillion Dollar Deficit

I just did not see or hear anything that leads me to believe I can trust this plan or this man. I do not for one minute believe he does not want a public option. He will truly say whatever it takes to get this implemented. I think all this proves is that they may have decided they have to do this incrementally instead of all today. In the process the President managed to promise everything but a chicken in every pot. The best way to express myself regarding this presentation is to clip quotes and comment. All quotes are directly from the President’s speech.

“First, if you are among the hundreds of millions of Americans who already have health insurance through your job, Medicare, Medicaide, or the VA, nothing in this plan will require you or your employer to change the coverage or the doctor you have. Let me repeat this: nothing in our plan requires you to change what you have.”

Of course there is no way to require that employers do not drop present coverage in favor of non-competitive less pricey options. Exactly how will a private insurance company compete with the might of the United States Federal Government?

“What this plan will do is to make the insurance you have work better for you. Under this plan, it will be against the law for insurance companies to deny you coverage because of a pre-existing condition. As soon as I sign this bill, it will be against the law for insurance companies to drop your coverage when you get sick or water it down when you need it most. They will no longer be able to place some arbitrary cap on the amount of coverage you can receive in a given year or a lifetime. We will place a limit on how much you can be charged for out-of-pocket expenses, because in the United States of America, no one should go broke because they get sick. And insurance companies will be required to cover, with no extra charge, routine checkups and preventive care, like mammograms and colonoscopies – because there’s no reason we shouldn’t be catching diseases like breast cancer and colon cancer before they get worse. That makes sense, it saves money, and it saves lives.”

So, there will be nothing left for an insurance company to decide about their business. What the President forgets here is that we have a free market. Anyone who is unhappy with present coverage can find a better, more suitable option. Once these new laws kick in there will be no choice. All coverage will be just as bad for everyone. The nasty truth is that the limitations imposed by insurers on pre-existing conditions were placed to avoid abuse of the system. Without the limits anyone could buy a policy only after finding out they have a problem. The “arbitrary caps” he speaks of are obviously a cost control that any business with a profit motive would have to have. If you want to know how this will work out simply ask a senior citizen if there are limits on what is covered for them. I can tell you that my mother, who is crippled by rheumatoid arthritis had to buy the corrective shoes she needed to walk. There are huge lists of medications and therapies that the plan will not cover. Is the President saying they get to keep this inferior coverage? Or is he saying we all get to participate in a plan just as bad as Medicare and medicaide?

“If you are one of the tens of millions of Americans who don’t currently have health insurance, the second part of this plan will finally offer you quality, affordable choices. If you lose your job or change your job, you will be able to get coverage. If you strike out on your own and start a small business, you will be able to get coverage. We will do this by creating a new insurance exchange – a marketplace where individuals and small businesses will be able to shop for health insurance at competitive prices. Insurance companies will have an incentive to participate in this exchange because it lets them compete for millions of new customers. As one big group, these customers will have greater leverage to bargain with the insurance companies for better prices and quality coverage. This is how large companies and government employees get affordable insurance. It’s how everyone in this Congress gets affordable insurance. And it’s time to give every American the same opportunity that we’ve given ourselves.”

This might have merit if the insurance companies truly had a profit motive to compete for these customers. Based upon the regulation and requirements outlined in his previous statement there will not be insurance companies clamoring to get this business.

“Now, even if we provide these affordable options, there may be those – particularly the young and healthy – who still want to take the risk and go without coverage. There may still be companies that refuse to do right by their workers. The problem is, such irresponsible behavior costs all the rest of us money. If there are affordable options and people still don’t sign up for health insurance, it means we pay for those people’s expensive emergency room visits. If some businesses don’t provide workers health care, it forces the rest of us to pick up the tab when their workers get sick, and gives those businesses an unfair advantage over their competitors. And unless everybody does their part, many of the insurance reforms we seek – especially requiring insurance companies to cover pre-existing conditions – just can’t be achieved.

That’s why under my plan, individuals will be required to carry basic health insurance – just as most states require you to carry auto insurance. Likewise, businesses will be required to either offer their workers health care, or chip in to help cover the cost of their workers. There will be a hardship waiver for those individuals who still cannot afford coverage, and 95% of all small businesses, because of their size and narrow profit margin, would be exempt from these requirements. But we cannot have large businesses and individuals who can afford coverage game the system by avoiding responsibility to themselves or their employees. Improving our health care system only works if everybody does their part.”

My guess is that this is only the beginning of the penalty phase of this mess. It’s comical that he has the nerve to relate this to auto insurance. First of all, auto insurance is imposed on those wanting to participate in the “privilege” of driving within a given state. You have the option to not get behind the wheel. The ramifications of driving without insurance are that you could inflict harm upon others and they need to be protected. No state that I know of requires you cover your own property, only that of other drivers. If you want to know about the impact that government can have when they interfere in insurance look back at the mess New Jersey created. Over regulation in the early 2000′s resulted in four of the six largest auto insurance companies pulled out of the state and premiums rose in exponential proportions. There is no free lunch. Mandate insurers cover the items outlined by the President and they either raise premiums or fold their tents and go home.

“While there remain some significant details to be ironed out, I believe a broad consensus exists for the aspects of the plan I just outlined: consumer protections for those with insurance, an exchange that allows individuals and small businesses to purchase affordable coverage, and a requirement that people who can afford insurance get insurance.”

Finally, Mr. Obama and I can agree on something. I agree there is a lot to be “ironed out”. I must say that saying “there remain some significant details to be ironed out” has got to be the understatement of the century.

“Here’s what you need to know. First, I will not sign a plan that adds one dime to our deficits – either now or in the future. Period. And to prove that I’m serious, there will be a provision in this plan that requires us to come forward with more spending cuts if the savings we promised don’t materialize.”

On it’s surface this statement should make opponents of the plan happy. If he were honestly evaluating this he could never sign a bill believing that it would not increase the deficit. The “out” that he leaves himself is cost cutting. If you believe that you all encompassing health benefits will not be cut back I know of a bridge for sale in Brooklyn.