Take Two of These and Call Me in the Morning

My inagural blog...wow...I'm finally doing this. Better download and save--this one might be worth a lot of money someday!

So, my initial thoughts are regarding health care. A big topic. A scary topic. One that has to be discussed, in my opinion. The Obama Administration has proposed sweeping health care reform, in the form of a nationalized health care program. No one knows for sure what the cost ramifications are (partly because the admin won't let the OMB estimate its total cost), but have seen projections in the $1 - 1.5 Trillion dollars. Yes, trillion.

The admin wants everyone, including the uninsured to have health coverage. Noble thought. They project uninsured at approx. 48 million Americans. So, fundamental question here...why would we need health care reform for everyone, if we're just concerned about the uninsured? In my estimation, its about control. This may very well be the largest government program when its all said and done, and what easier way for the government to make decisions for everyone is with their health care? Why? Because pompous politicans think they know what's better for you than you do...that you can't take care of yourself...that you aren't smart enough to figure it out on your own.

Sounds like more and more people are asking questions about this proposed program, and its being met with heavy scrutiny. And, rightfully so. I would like to see evidence of where a large government program has outperformed, either from a cost or service angle, a private or commercial option. How does removing competition make this a better idea than what we currently have? Health care reform is needed; no dispute there--but the answer is not a socialized form of government program.

Competition, at its defining level, helps to elevate and raise the bar for performance. We compete on a daily basis...its what makes us who we are, it makes us America. Knowing that your destiny lies in the palm of your hand--how hard you work, competing against others (and maybe a little good luck mixed in for good measure). What incentives would the health care professionals have to be the best in their field? What would spur on new technologies, new breakthrough drugs, new procedures? Much of that would fizzle out under such a program.

Who's to blame for inflated health care costs? Doctors? Insurance companies? Maybe it lies with us...Safeway has managed to keep both employer and co based premiums level for 4 yrs, while the nation's average premiums inc by 44%. They have done this through a market based approach to health care, in the same vein as auto insurance, who price is based on the risk of that policy holder (age, speeding tickets, accidents,etc). Cost is based on factors such as obesity, cholesterol, etc. and reward employees for healthy lifestyles--stipends or money back for non smokers.

Put the onus back on the individual...if individuals have a hand in the cost of footing these bills, they will become more involved and educated, instead of making their co payment and never worrying about what is happening behind the scenes. Again, the choice is in each person's hands...if someone chooses to live according to a less healthy lifestyle, then they will be responsible for the appropriate amount of the financial burden. 75% of health care costs are the result of four conditions--cardiovascular disease, obesity, cancer, and diabetes--and the majority of these are preventable. Its changing behavior patterns, not merely genetics.

Had we implemented this plan nationwide when Safeway did in '05, we could have paid for the 47M uninsured five times over. And, let's not lose sight of the fact the admin's proposed plan includes covering 12M illegal aliens (25% of uninsured).

There are other solutions that need to be explored, such as this market based approach, or even tort reform. Costs and coverage by insurance companies and the hospital systems need to be more transparent and readily accessible to the public. Then let the market dictate--if a doctor is not performing well, people will stop seeing him and his practice will falter. If a hospital is overcharging for procedures in respect to other area facilities, they will either adjust their costs to better compete (compete...what's that?) with their peers, or fall to the wayside. A market based approach can work, just as it can for our economic system.