Health Care Passes

Go ahead, admit it.

You don’t really understand the Health Care reform bill that passed the House late last night.

Neither do I.

The problem is that many of the House members who voted for or against it probably don’t know either—and that is scary.

What we know---or THINK we know of the bill is likely the product of what we’ve been TOLD about the bill. The source of the information is rarely unbiased—and projections of what will happen are really nothing more than supposition. We know that Democrats, for the most part LOVE it—and that Republicans overwhelmingly HATE it. If you are a staunch party advocate, then your chosen source of information is likely shaping your opinion of the bill.

As for the “facts” of the bill, the following seem to be true:

1) Health Insurance companies cannot drop you for a pre-existing condition
2) 32 million Americans without health insurance will now get it
3) You can keep your kids on your policy until age 26
4) Women will no longer pay higher rates than men based on the mere fact that they are women
5) There are no immediate cost containment provisions, meaning that insurance companies can raise rates at will
6) Tempering #5 is—I believe—a mechanism that will provide portability and choice of providers in many states where none existed before.
7) There is no dollar limit on what companies can impose for benefits paid over your lifetime
8) You will be required to buy health insurance—with a penalty paid for failing to do so.
9) You can switch jobs without fear of losing insurance (related to #1 above)


Most of the above seem desirable to me, with the exception of #5 (who wants rates to go up?) and #8, but buying car insurance is mandatory in most states—with no constitutional crisis looming over it.

So…the biggest question is: HOW DO WE PAY FOR IT?

This, of course, is where the Republicans have centered their argument. They claim that Medicare will be hurt, that taxes will go up and that the government is essentially “taking over” healthcare.

I have NO IDEA how we will pay for it, but I don’t really understand the dynamics economically behind any of this. The Republicans hung their hat on the Congressional Budget Office’s report, promising that it would confirm the same horror story that GOP pundits had espoused.

Oops.

President Obama promised a “deficit neutral” effect with the plan—and then the CBO actually reported that it would greatly REDUCE the federal deficit. Now, the naysayers had to find another angle from which to attack.

That angle was federal funding for abortion, among other items, like the so-called “Cornhusker Bailout”, a distasteful pork serving to Nebraska to secure support.

The fact is that these “deals” have been going on since the dawn of the nation—we just haven’t had a front row seat or the inclination to pay attention. In fact, watching the “sausage being made” last night on C-Span was enough to make any American—regardless of your views—reach under the tray table to the seat pocket and grope for a stomach distress bag.

So, despite over 200 Republican amendments to the bill that passed, this was not a “bi-partisan” piece of legislation. Despite the fact that the American Medical Association AND the AARP endorsed it, there were no votes to be had on the GOP side of the aisle.

Retribution at the polls was the threat---one that will no doubt cost some people their seats.

Only time will tell if Health Care reform was a mistake. Maybe Social Security was too. Maybe Medicare/Medicaid. Those who rail against these “big government” programs cannot conceive of our society without the last two mentioned. Voting to abolish either Social Security or Medicare/Medicaid would be a one-way ticket to political oblivion—even if you are a free-market Republican.

Will we get collectively hosed by Health Care Reform?

Nobody knows….really…NOBODY knows. Of only one thing I am sure. Finally, the Congress showed some courage (at least portions of it) in the face of political suicide to enact legislation aimed at improving the lives of millions of Americans.

I am proud of that one fact. As for the fallout from reform…..well, we’ll just have to wait and see.

If you’d like my blog in your box, please let me know: tim.moore@citcomm.com