REBUTTING OBAMA’S HEALTH CARE SPEECH

By Dick Morris And Eileen McGann
09.14.2009

In his hour long speech on health care, he failed to spend even a moment rebutting the central critique of his program: His inability to provide quality medical care for 30 million new patients without any additional doctors or nurses.

The shortage of medical personnel which will inevitably accompany the expansion of the patient population will leave some element - and perhaps all — without adequate care. Like the man who sleeps with a blanket that is too small, either his neck or his feet will get cold unless he gets a bigger blanket.

The result of expanding the demand for medical services without augmenting the supply of doctors or nurses must be the rationing of medical care. And rationing will inevitably take its greatest toll among the elderly, forcing them to forgo elective surgery or, if their remaining quality years are likely to be limited, to do without vital life-prolonging treatment. Inevitably, we will all have to wait many more days, weeks, months or years for care we now receive on demand.

Obama will cut Medicare and that portion of Medicaid which serves the elderly in nursing homes (75 percent) in two ways:

(a) As he said in his speech, he will cut “hundreds of millions in waste and fraud and unwarranted subsidies in Medicare.” To identify this “waste and fraud” he proposes to establish a commission within the Executive Branch to investigate the program and initiate cuts. Congress will have only sharply limited power to override these reductions or else they will automatically take effect.

Obama admits that these cuts will largely take the form of reducing reimbursement rates for hospitals and doctors. Paid less per office visit, doctors will spend less time on each patient. Reimbursed less for MRIs or CT Scans, they will order fewer of them. And getting less income, more doctors will retire and fewer will enter the profession aggravating the scarcity.

The president also plans to eliminate the Medicare Advantage program, an approach to managed care which permits the elderly a coherence and a coordination in their treatment that about one-third of them find valuable enough to sign up for.

(b) His newly established panel to cut Medicare will also “encourage the adoption of…common sense best practices by doctors and medical professionals…reducing the waste and inefficiency in Medicare and Medicaid will pay for most of this plan.”

These are code words for the rationing the imbalance in supply and demand will cause. The panel will “encourage” doctors to adopt the “best practices” the panel recommends by limiting reimbursement rates or even banning alternatives. Likely guidelines will govern who can get elective surgery like hip replacements or new knees based on the number of QARYs “quality adjusted remaining years” the patient has.

For example, in Canada, the drug Avastin is barred by just such a panel despite its proven track record as the most effective anti-colon cancer drug on the market. The ban is not because of any safety concerns, but solely due to its $50,000 annual cost. As a direct result, 41% of Canadians with colon cancer die as opposed to 32% of Americans. It is just these kinds of “best practices” that the panel will have to impose to pay for Obama’s plan.

The panel will likely recommend limits on testing and screening, worsening rather than improving preventative care. In Canada, for example, there is an eight month wait for colonoscopies which leads to a 25% higher incidence of colon cancer.

Together, these cuts in Medicare will pay for more than half of the subsidies in Obama’s program. And what will the money be used for? To pay for medical coverage for people who are too young for Medicare, too wealthy for Medicaid, and too old for the Children’s Health Insurance Program. The president claims that this coverage will be “affordable” for those now uninsured. But the guidelines in the bill indicate that a person making about $30,000 a year will have to pay approximately 8% of his income in premiums before the subsidies kick in — $2400 a year. Many of those now uninsured will find this expenditure both onerous and unnecessary in view of their current youth and good health.

Obama claims that “our health care problem is our deficit problem. Nothing else even comes close.” He’s wrong. Medicare and Medicaid costs have risen by about 5% in the past year while the budget deficit has quadrupled. The deficit is caused by the massive overspending in the TARP program bailing out banks and the equally gargantuan stimulus package, throwing money - ineffectually - at the recession.

The president reports that “the reforms I’m proposing will not apply to those who are here illegally.” This statement is also a half-truth. Illegal immigrants will be eligible to buy health insurance from the insurance exchange Obama creates, taking advantage of the lower rates he claims it will allow through bulk purchasing. And, without any effective provision for citizenship verification, will inevitably slip through the cracks and get subsidized coverage.

He boasts that “nothing in this plan will force you or your employer to change the coverage or the doctor you have.” But the rationing his program will force will make those insurance companies and doctors impotent in the face of federal mandates for reduced care.

The president’s plan is, essentially, a program to take medical care away from the elderly and give it to those who are younger, healthier, and - in the main - richer.




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  1. Polls indicate approval for Obamacare on the rise. Not so fast! | Political Integrity Now on September 14, 2009 11:13 am

    […] Rebutting Obama’s Health Care Speech (Dick Morris) […]

  2. PunditKix on September 14, 2009 11:14 am

    REBUTTING OBAMA’S HEALTH CARE SPEECH at DickMorris.com

    Thank you for submitting this cool story - Trackback from PunditKix

  3. The one question about health care Obama refuses to answer | Political Integrity Now on September 14, 2009 11:15 am

    […] Rebutting Obama’s Health Care Speech (Dick Morris) […]

  4. Engineer on September 14, 2009 11:56 am

    This health care issue sounds more and more like Social Security in its infancy which was a promise of something in return for a small increase in taxes. The original Social Security tax was about 0.5% of your income and 130 million people in 1936 (when it was implemented)paid for less than 20 million people from the 1880s (the group first receiving benefits). Today the tax rate is over 7% and the system is near bankruptcy largely from raids on the trust fund in the 60s by LBJ and expanding the program to cover issues it was never intended to by liberals like Ted Kennedy.

    Now we have another promise of return in the form of health care with small or no tax increases? If you can reduce the impact of benefits for the elderly (as Dick Morris points out)and tax the healthy and businesses, then government ends up with huge surplus of money (much like Social Security in the 60s) which will be squandered and then finally another fiscal fiasco when the invincible young people of today start to become old themselves.

    While retirement and health care are noble issues a common sense approach is needed with small incremental steps to make adjustments that keep the system in tact while making it more efficient. This bill is a huge power grab to force the country into a socialist state.

  5. The Two Malcontents » REBUTTING OBAMA’S HEALTH CARE SPEECH on September 14, 2009 1:38 pm

    […] By Dick Morris And Eileen McGann […]

  6. REBUTTING OBAMA’S HEALTH CARE SPEECH at DickMorris.com « Snow Report Blog on September 14, 2009 1:46 pm

    […] via REBUTTING OBAMA’S HEALTH CARE SPEECH at DickMorris.com. […]

  7. rmont on September 14, 2009 4:23 pm

    “Reimbursed less for MRIs or CT Scans, they will order fewer of them.”
    Dick, I’m a radiologist. Doctors who order these scans usually do NOT get reimbursements unless they are partners in a free-standing, independent outpatient facility. These exams are usually done in hospitals. The radiologist is reimbursed for interpreting the scan, the hospital is reimbursed for performing the scan, but the ordering doctor usually only receives a report from the radiologist because he ordered the scan.
    Also, I’m unclear about your last sentence in this report. Did you maybe mean “those who are younger…” instead of “those who are NOT younger….?”
    Sorry to criticize. Usually, I love you. My purpose in writing is to help you look very knowledgeable about the subject when you write.
    Regards,
    Bob Montgomery

  8. Caffeinated Thoughts on September 14, 2009 11:08 pm

    Latte Links (9/15)

    Changing this up a bit, feel free to treat these “Latte Links” posts as an open thread, so don’t feel bound to comment on any of the links.  Comment on whatever you like.  Anyway, on to today’s miscellany:

    Switched: Pigeon Beats IS…

  9. Gang of six expects to seal Health Care deal by Tuesday | Political Integrity Now on September 15, 2009 12:55 am

    […] Rebutting Obama’s Health Care Speech […]

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