Personal Commentary on Health Reform (by Ken Smith)

Health Care Bill Summary

The Senate bill, as passed by the House, on 2010-03-21:

• Mandates that everyone must buy insurance
• Results in about 30 million additional people becoming insured
• 15 mil of those 30 mil with be diverted to Medicaid, at direct costs to the states
• Increases the number of people eligible for Medicaid, other than those 15 mil
• Subsidizes coverage for people who can\’t afford insurance
• Raises fees, taxes and makes cuts to Medicare Advantage (Starts now, but no benefits for 3 yrs)
• Changes the payment formula for Medicare Advantage
• Makes insurance companies cover everybody, including all pre-existing conditions
• “Government” sells insurance to individuals and small businesses through an “exchange”

This Bill must now go back to the Senate to either accept, change, or \’kill\’ the reconciliation provisions, although congressional wisdom (an oxymoron) indicates acceptance.

Personal Commentary:

Insurance is a form of financial protection against catastrophic loss, achieved by the “pooling” of premiums to pay claims. This Bill essentially changes our health insurance industry to a welfare entitlement program. As with all things financial, fiscal responsibility is necessary. This Bill is perfect for those people who have not been responsible by purchasing health insurance, and then respond by whining to the government after contracting a medical condition. For the rest of us that are responsible, this Bill is not perfect.

The history of our government programs does not contain evidence to support any confidence in the claims that this Bill will reduce cost or deliver better healthcare. For example,

1) Federal Income Tax: Congress promised us that it would never go above 3%.

2) Social Security: Roosevelt and Congress sold it to America as a ‘protected fund’, but argued it before the Supreme Court as a TAX.

3) Medicare & Medicaid (1965): Johnson and Congress promised that it would never be more than a 50 million dollar liability, but today it is an unfunded 38 TRILLION dollar deficit. (Not billion, but TRILLION) ($38,000,000,000,000) (Oh well, they\’re just zeros)

Ken Smith, Capital Insurance Agency