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Morass !

Kong Sez:

    Folks, this is a morass...and it is only going to cost you more in the end!

    Dr. Gary North on his member only website section has this to say:

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Chart of the Proposed Health Care Delivery System
Gary North
July 16, 2009

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The details have yet to be worked out. The executive branch will fill in the gaps: the Department of Health and Human Services and the other executive departments. The details will be published in the Federal Register. The bill is 1,000 pages long. Here is the bare-bones (to coin a phrase) outline:

For an enlarged view, click here.

Think of the paperwork.

Think of the cost of the paperwork.

Think of the delays in payment.

Think of the confusion.

Think of emergency care.

Think of the opportunities for corruption.

Think of the waste.

The free market through pricing can allocate resources. The decisions are made locally. When a central planning agency attempts to allocate a nation's resources, it flies blind. That was Ludwig von Mises' conclusion in 1920. That, he said, is why socialist planning is irrational.

http://mises.org/pdf/econcalc.pdf

This proposal will create permanent shortages in health care. No committee can plan for health care delivery. There will be no single committee. Multiple Federal departments will have authority. These jurisdictions will be in conflict. Physicians will not know who is in charge. They will be at risk of violating conflicting rules.

When the consumer is not in charge, multiple bureaucrats will be. There will be chaos.

There will be no way to fix this system, once it becomes law. There will be no way to get rid of it. It will create a constituency of tens of millions of voters. It will be like Social Security. This system is still operating in Great Britain, Canada, and Australia. It works poorly, but it is permanent politically.

To get decent care for major procedures, rich Americans will fly to second world countries. Care will be cheaper than here, until the dollar falls. It will be sold to the highest bidder. No one will stand in line. No one will be on a long list. "Yes, you can get that operation in 18 months."

There will be profitable opportunities for entrepreneurs to find reliable foreign clinics and sell the information on-line, from sites located outside the U.S.

For normal care, walk-in clinics will cut costs. Wal-Mart will probably rent space to them.

If you have a personal physician, make sure he or she is younger than you are -- a lot younger. You want that long-term relationship. You want to get onto the list of existing patients.

My wife's physician offers non-conventional care -- alternative therapies. It costs close to $800 for the first two consultations. He uses a high price to screen out middle-class people and poor people. He has got the picture. There is another physician a few miles down the road who uses the same screening technique. Neither of them will be dependent on payments from insurance companies or the Federal government. Their practices will survive. They started out with the correct model: treat people with a lot of discretionary income.

There is a new TV show on this: Royal Pains. It's about a concierge physician who treats the rich in the Hamptons and also the poor. It's therefore about a cartel. Discriminatory pricing -- one price for the rich, another for the less rich -- can only exist in a cartel that is protected by government licensing from competition. That point was made in an article in the first issue of The Journal of Law and Economics in 1958: "Price Discrimination in Medicine." The script writers did not read it.

That show describes what the Democrats' health care plan will create on a massive scale: two-tiered medicine. You had better have money of your own for health care. You want to be in the top tier.

You will pay for your care. You will also pay for everyone else's.

Under the House Democrats' plan, the federal government would be responsible for ensuring that every person, regardless of income or the state of their health, has access to an affordable insurance plan. Individuals and employers would have new obligations to get coverage, or face hefty penalties.

The legislation calls for a 5.4 percent tax increase on individuals making more than $1 million a year, with a gradual tax beginning at $280,000 for individuals. Employers who don't provide coverage would be hit with a penalty equal to 8 percent of workers' wages, with an exemption for small businesses. Individuals who decline an offer of affordable coverage would pay 2.5 percent of their incomes as a penalty, up to the average cost of a health insurance plan.

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