American Elephants


A Reality Check on Health Care Costs. by The Elephant's Child

Democrats are preparing to address health care again next year, so promises are forthcoming at a furious rate.  When there is a brief note of the reality of the vast expense of “universal” coverage, taxpayers should pay attention.  We need to know just what they are doing, not just “for us” but to us.

Peter Orszag, the former head of the Congressional Budget Office,  has left the CBO to become Barack Obama’s budget director.  The CBO is the office responsible for estimating how much legislation will cost the government.

They recently released two reports on health-care financing that should hit Congress like the proverbial ton of bricks.  The short version is that liberal health care reforms will be extremely costly, while measures intended to save money won’t begin to live up to even conservative estimates.

When the reform proposals are added up, even Democrats concede that their new health programs will cost $150 or $200 billion a year. Perhaps in a year when ‘billions’ and ‘trillions’ are everyday terms, Congressional Democrats have lost their sense of  just whose money they are spending so casually. We need to remind them.

These are only estimates.  The real costs will be higher.  Efforts to cut costs, such as information technology, will result in only modest savings.  Current efforts at introducing information technology in hospitals have resulted in massive cases of identity theft, with no way at present to solve such a problem.

The Wall Street Journal issues a cautionary note. Do read the whole thing.   You cannot afford to be ill-informed on this issue.  Your life may depend on it.




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