Friday, September 4, 2009

ANALYSIS OF HR 3200 HEALTH CARE REFORM BILL

As for HR 3200, there is a lot that is “not in the bill”. No death panels to kill your Grannies. No mandate for coverage of illegal immigrants. No rationing. However there is also nothing in the bill to preclude these things.

There is a lot about what private insurers must cover, and about price controls on all sorts of providers.

There is a Health Exchange which will greatly increase the already skyrocketing administrative costs for Health Care Providers and therefore their fees.

There are also multiple new bureaucracies created at local, state, and national levels, as well as councils and committees, all under the control of the Executive Branch. Lots of committees, and councils, and other groups are created to study and disseminate “comparative effectiveness” information, as well as to decide what areas will qualify for extra help or all sorts.

There are lots of clinics and jobs for nurses and doctors to expand health care in under served areas, as well as lots of study grants for medical personnel at all levels.

This is a huge jobs creation bill, probably thousands in every state. Unfortunately they are all government jobs, which, however much good you believe they might do, will be a drain on the economy. The Feds will mostly fund this boondoggle for two years, and then it will become a burden on the States, who will have to impose lots more taxes. It goes without saying that Federal taxes will also have to go up exponentially.

Otherwise this bill is like most of the bills passed under the current Administration; it gives authority to councils and committees, and authorizes lots of money, but then basically says “details will follow”. Who would sign such a contract? I hope not Congress!

Note: The Senate bill is almost as bad. Just because the “public option” is removed doesn’t mean it is a good bill. If the regulations in the bill result in forcing insurance companies to substantially raise their costs, people will be driven to demanding a single payer system after all. The "Gateway" idea is much the same as the Health Exchange, and has the same problems.

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