Skip to comments.ObamaCare's Economic Flaws
Posted on 06/08/2011 4:36:51 PM PDT by Kaslin
The Patient Protection and Affordable Care Act better known to Americans as ObamaCare hinges on a single provision known as the individual mandate. This mandate is a dramatic intrusion on individual liberty that requires virtually every American to buy a government-sanctioned health insurance policy.
Befitting its legacy of defending U.S. small business, entrepreneurs and the free market, the National Federation of Independent Business (NFIB) has challenged the constitutionality of the individual mandate. The lawsuit, which was argued Wednesday at the 11th U.S. Circuit Court of Appeals, is expected to reach the Supreme Court for its ultimate resolution.
Legally, the use of the Commerce Clause ("Congress shall have power ... to regulate commerce ... ") to compel individuals to participate in the market for health insurance is unprecedented.
Thus, in defending this unprecedented law, the Obama administration has significantly relied on the notion that the economics of heath care are so unique and different as to justify discarding established constitutional protections. But that economic contention is fundamentally flawed, as I, along with 104 other economists, explained in an amicus brief in the NFIB lawsuit.
Specifically, the government's position rests on two false economic claims. First, that an individual's decision not to buy health insurance substantially affects interstate commerce by increasing the costs of health insurance for all Americans.
Second, that the health care industry is "unique" because of its high rates of participation, high costs, federal mandates and the purported uncertainty surrounding when care will be required.
Let's consider these in turn.
(Excerpt) Read more at investors.com ...
There is a solution, but conservatives won't like it much: have the insurance company share the liability. If the insurance company refuses to cover a procedure, then that fact should be part of any litigation.
Part of the pharmaceutical promotion to medicine is because of the "sharing the blame" from doctors just to keep their financial heads above water IMO.
Freedom from Tort would be seen as a major step in improving health care.
Obamacare desires to do away with the single practice doctor and merge them into AGO’s eventually becoming direct government employees with union benefits etc. Right now the doc pays rent, a nurse salary, health benefits and a front office person to keep his schedule. If he is a GP he gets $24 per visit. MediCal pays $18. He has to see an awful lot of people to keep his doors open. Surprise. He is a business! Now if we want our doctors to be union employees who can go on strike...
I came across a perfect example of the horrible flaws in the legislation. The mother of my daughter’s tennis opponent in a recent match engaged me about Obamacare. I did not bring up the subject. I had not met her before. She told me that her cardiologist husband was leaving private practice after 13 years because of Obamacare. I was surprisesd when she told me that she was a ardent Democrat. She was still not sure that she could vote against Obama even after her husband’s loss of practice. Obamacare has barely begun so if it is bad now, the situation will be much worse later. Her husband cannot keep his practice afloat with the low reimbursement rates and many onerous requirements in the law.
Obamacare is a disaster to its core. It is easy to get lost in all of the horrible details. I focus on the assumptions and basic aims of the law. The law codifies the misguided notion that someone else should pay for your health care. The rats call this scheme “health care rights”. The law uses the familiar tyranny of the majority to enforce this misguided notion. Individuals with incomes up to $90,000 will receive subsidized health insurance. Obamacare along with many other rat legislation try to establish legal right to confiscate property from others (the rich).
Beyond the assumptions of free loading and destruction of private property, Obamacare involves effective government control of an incredibly complex industry (a number of industries). Government control means mandated services, price controls, and rationing. Basic economics is clear about the results of central planning on this scale. There will be lots of unmet demand unless black and grey markets develop. You may have a right to health care but that right cannot force availability of competent health care services.
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