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Roberts Saves Obamacare: Now the Real Work of Reform Begins

Posted: 07/03/2012 2:14 pm

The narrow survival of the Affordable Care Act last week was certainly cause for celebration. But as the jubilation subsides, it's important to realize that having avoided what would have been a giant step backward doesn't mean we've taken a giant step forward. Because the law as it now stands is only the first step toward health care reform.

On Sunday's This Week, Vicki Kennedy (Ted Kennedy's widow) spoke movingly of how "health care reform was the cause" of her husband's life. "He believed that it was a moral issue," she said, "that it defined the character of who we were as a society, who we were as a country, and that decent, quality, affordable health care should be a fundamental right and not a privilege." She went on to say, "Families can go to sleep relaxed and happy knowing that their children who have asthma or diabetes or allergies are covered by insurance and aren't barred because they have a pre-existing condition."

But in fact we are a long way from that rosy description. Beyond the problems of implementation and whether this state or that governor will set up the required exchanges by 2014 or accept money for Medicaid expansion, the Act mostly extends a flawed system to more people. And while this is certainly a very good first step -- leaving 50 million people without insurance is unconscionable -- we quickly need to get to work improving it.

"All but lost in the commentary" about the decision, writes Eugene Robinson, "is that the Affordable Care Act was intended as just a beginning." Or, as Cornell's Robert H. Frank put it, "The point worth celebrating is that last week's ruling will at last enable our distinctly dysfunctional health care system to evolve into something better."

Primary among the next steps to continue that evolution is the need to focus on cost containment and prevention -- neither of which the Act adequately addresses.

"With or without Obamacare, the American health system will continue to unravel -- quickly if Romney is elected, slowly if Obama is re-elected," writes Dr. Marcia Angell of Harvard Medical School. And this is because the law doesn't actually reverse the unsustainable trend line of skyrocketing health care costs. "[Obama] also did nothing to rein in the profit-oriented delivery system that rewards providers on a piecework basis for doing tests and procedures," writes Angell. "So with all the new dollars flowing into the system and no restraints on the way medicine is practiced, the law is inherently inflationary."

As one health care lobbyist told Angell, if the Act cuts into the industry's profits, they'll just raise premiums -- something the new law doesn't prevent. When this happens, more and more people will opt out of the system, choosing to pay the meager penalty -- sorry, Chief Justice Roberts, I mean tax. This will lead to even higher premiums, and the vicious cycle will continue, albeit a tad more slowly than before.

This is because, writes Angell, "Obama gutted the law before it even passed." Aside from keeping most of the current system in place and simply extending it, there were the deals to not allow drug reimportation and the deals that prevent the government from negotiating for lower drug prices. In 2008, then-candidate Obama took on the latter provision being left out of the Medicare Part D bill: "That's an example of the same old game playing in Washington," he said. "You know, I don't want to learn how to play the game better. I want to put an end to the game playing." He clearly didn't.

Beyond the continuing problems of how to cover treatment once people are sick is the escalating problem that comes one step before that: dealing with efforts to prevent people from getting sick in the first place. Given current obesity and diabetes trends -- and the myriad medical problems associated with them -- it's not enough to focus on coverage. Any plan that doesn't aggressively tackle preventive care can't contain enough costs to be sustainable.

And though the Act has modest preventive care provisions, they're mostly about screenings for various conditions -- which is great, but not nearly enough to reverse the alarming trend lines. And even among those provisions, there are, as many patients -- and insurers -- have already found out, numerous loopholes.

"Perhaps the most pressing public health challenge for the United States today is the epidemic of... obesity," writes Ross A. Hammond of the Center on Social Dynamics and Policy, "which is linked to an array of costly and debilitating health consequences." Since 1960, obesity has risen nearly 35 percent. Looking just at children, nearly one-third of whom are obese or overweight, obesity is associated with over $14 billion in direct medical spending; overall, more than 20 percent of U.S. medical costs are now attributable in some way to obesity.

This obesity epidemic is also helping to fuel the diabetes epidemic (in addition to heart disease, cancer, asthma and a host of other conditions). As Hammond notes, a shocking one-third of all children born in America will develop type 2 diabetes at some point. "Even if the epidemic does not worsen," he writes, "these costs are likely to prove an unsustainable burden on the health system given the long-term growth of the federal debt." On the other hand, just a five percent decrease in diabetes could save an estimated $25 billion every year.

In response to the Supreme Court ruling, President Obama said that "with today's announcement, it's time for us to move forward -- to implement and, where necessary, improve on this law." The "where necessary" implies that it's just a matter of tweaking a few things here and there. But it's not about tweaks. We need to continue to think big. Among the many important aspects of passing the Act was simply putting to rest the notion that nothing can be done. Well, something was done -- but much more, especially on preventive care, still needs to be done.

In the weeks leading up to the ruling, we read a lot about the sense of urgency and alarm and resolve that health care advocates would have if the Affordable Care Act were struck down. Now that it's been largely upheld, we need to keep -- and build upon -- that sense of urgency.

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The narrow survival of the Affordable Care Act last week was certainly cause for celebration. But as the jubilation subsides, it's important to realize that having avoided what would have been a giant...
The narrow survival of the Affordable Care Act last week was certainly cause for celebration. But as the jubilation subsides, it's important to realize that having avoided what would have been a giant...
 
 
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HUFFPOST SUPER USER
Shaun Hensley
The American Experiment has failed
09:14 PM on 07/08/2012
Every dollar of insurance industry or health care service provider PROFIT is a dollar which has been WASTED. Period.
07:23 PM on 07/08/2012
"This obesity epidemic is also helping to fuel the diabetes epidemic (in addition to heart disease, cancer, asthma and a host of other conditions)"

I was told our lower life expectancy was a result of our HC system during the HC debate, I claimed our low life expectancy was a result of our lifestyle choices.

People think that mandating everyone pay the same creates equality in the system when in reality it creates a path for continued irresponsibility from the abusers of our system.
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HUFFPOST SUPER USER
ekim gnitlon
06:46 PM on 07/08/2012
I feel this article tells like it is. Obama started compromising to get something. What we get is weak but a move in the right direction. Excuse me while I tell a story.

I just got my bill from Kaiser Physical Therapy. My bill was 100.00 dollars for 15 minutes. That equates to 400.00 per hour so someone could flex my shoulder. I did not receive any ice or electric stimulation just some flexing and stretching. 400.00 per hour for physical therapy. True.
07:36 PM on 07/08/2012
Because the service provider is not accountable to you - the consumer. They work things out with the insurance company. It won't get any better with ObamaCare because they still won't be accountable to you. Going forward they will accountable to the government. This won't get better until service providers - whether a doctor, phys therapy clinic, pharmacy - whomever - if they only have to negotiate with an insurance company or the government, healthcare will continue to get worse. Put the consumer in charge and it will change. That means current insurance structure won't work and the new ObamaCare structure won't work.
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HUFFPOST SUPER USER
Shaun Hensley
The American Experiment has failed
09:05 PM on 07/08/2012
yes, true health care reform will cap costs.
05:57 PM on 07/08/2012
Government run healthcare legalizes the corruption in the current bureaucracy. It establishes rationing and government as the final arbiter in deciding when your life is no longer valuable. HHS doesn't like the name "death panels', but that's exactly what they are. And the taxes - not just one, but tons of new taxes - on everybody. Doesn't the addition of 16,000 new IRS agents get anyone's attention? Take a simple one - the 2.3% medical device tax. Real life example - small business - $10.0mm sales per year. Has 65 employees. That tax comes right off the top - $230k! Tell me the guy either moves the manufacturing offshore or lays off people to keep the business going. Starts Jan 1, 2013. Multiply that throughout the economy. Multiply that across the government run, 2,000 page law we still don't fully understand. And they are still writing regulations. But don't worry - government bureaucrats are exempt from Obamacare. They will still have their Platinum coverages while the rest of us deal with rationing, long lines and denial of procedures because some gov't wonk decides we don't need it. The answer is to take control away from the insurance companies and the government. But that means they lose power. Can't have that in the new world of Obama - where its all about him dictating laws, what is right and wrong according to him, what he believes is best for all of us.
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06:22 PM on 07/08/2012
Relax. Eventually we will just expand Medicare and get rid of the parasitic middlemen. Without an insurance lobby to preserve and exacerbate them the artificial problems will quickly be resolved.
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lemealone
It will take more than condiments to foil my brill
09:31 PM on 07/08/2012
Is it the middle man or the medical groups that are abusing the prices to go up? Look at education, the more goverment money there is the higher the tuition.
06:32 PM on 07/08/2012
Let's see, we have the choice of government deciding when our lives are no longer valuable or CEO's of insurance companies deciding on when stock holder's dividends are more important than our lives....

I'll take the government....thanks
sternn
Oh no! My micro-bio is empty!
09:08 PM on 07/08/2012
I agree, at least you can fire members of the government. Corporate heads have no restraints and only pay lip service to the subject of morality.
HUFFPOST PUNDIT
Beatriz09
04:48 PM on 07/08/2012
"As one health care lobbyist told Angell, if the Act cuts into the industry's profits, they'll just raise premiums -- something the new law doesn't prevent."

And why should we spontaneously believe HC lobbyists .... ?

First of all, a CBO report has shown that the profits of health insurance companies will neither go up nor go down.

Secondly, Obamacare CLEARLY contains EXPLICIT mechanisms to prevent costs from rising. An example: from now on companies are mandates to spend 80% of what their receive in premiums on reimbursements.

If you know that many companies today are engaged in a "race to the bottom", with some of them spending only 70% on care, AND if you know that the main driver of this process was the fact that Wall Street  gives them a LOT of money when they can show that they lowered the % of care, then you'll easily understand that MANDATING them to pay 80% ENDS it. They will no longer be able to increase their profits simply by increasing premiums or trying to get rid of even more sick Americans.

More broadly, imo the biggest mistake we can make is to imagine that REAL reform still has to begin. What the entire Obamacare battle has shown - and continues to show - is why it has taken us more than half a century to obtain a bill that keeps a 100% private sector system but that optimizes it in such a way that hundreds of thousands of lives will be saved during the next decade alone, all while creating almost universal HC: it's because a LOT of extremely powerful HC lobbyists STRONGLY oppose the smallest change to the status quo.

Today, Romney has become the champion of defending the status quo. The most important question during the next months will be whether we as a people can succeed to keep Obamacare, or whether we'll lose it even before having experienced its benefits.

I absolutely want single payer, but we will never get there if we don't take EVERY single battle that we have to fight in order to get there seriously.

Electing a supermajority that wants single payer already in Nov. is totally IMPOSSIBLE.

That means that we URGENTLY need more articles explaining what Obamacare will do and debunking the many Myths the GOP is spreading about it.

The same goes for jobs.

By focusing on our ultimate goals on, we risk to lose the most important battles of our generation.
09:07 PM on 07/29/2012
I would much prefer my State to set up exchanges and legislate in referendum. Make it real simple. 1) Everyone is covered, free at the point of delivery; 2) 20% of your wage goes towards it, split between you and your employer; 3) if you are poor then the HMO must cover you regardless - subsidy comes from other people or 1% of every sales tax purchase. 4) Stop charging individuals when they earn over $100,000 per year, but keep on charging employers 5) Purchases made centrally to bring down costs - like a central house clearing center. Simple, nothing hidden, vote to raise or lower the tax depending on the doctors need.

So a person on $20,000 would contribute $4,000 per year; a person on $40,000 would contribute $8,000 per year and a person on $100,000 would contribute $20,000 per year. Finally a person making $200,000 would pay $30,000 and a person making $1million would pay $110,000.

If you ask people to do it when they are younger they will usually sign up to it and be less resistant as they are not wealthy AND they are usually healthy. As they get older and earn more the reward to the HMO is counterweighted by their higher income.

If you consider your average premium is $8,000 and you have 240 million people living in the States. Then that makes $2 trillion. Wow isn't that what the US spends already!!! Crazy and everyone gets insured!!
04:37 PM on 07/08/2012
we've had one of the biggest political death struggles that i've ever witnessed just to get the ACA and there is a small but real chance the whole thing could be repealed. so, even though i understand the system is dysfunctional and possibly unsustainable, i just don't know how people who have witnessed the battle to pass the ACA would think that single payer or medicare for all would be passed into law anytime in the next 25 years. the ACA is the base of operations to make healthcare in this country better, warts and all. i think advocates need to deal with this reality and focus on improving on what we have. at this point, single payer, etc. is just a distraction.
10:39 PM on 07/08/2012
So if single payer can't be passed, why pass something that worsens the system and makes in more expensive, like Obamacare?
04:13 PM on 07/08/2012
That the allegedly corporate owned Supreme Court has upheld Obamacare, one must immediately question who really wins with Obamacare. Is it the public, or is it the insurance industry? When auto insurance was mandated, costs of coverage skyrocketed. Expect the same to happen with health insurance, as if it isn't grossly expensive as it is.
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Beatriz09
05:00 PM on 07/08/2012
That question has been answered two years ago already: the CBO has calculated that insurance industry's benefits won't be bigger nor smaller because of Obamacare, premiums will go up MUCH slower than what has been the case for years, and costs for ordinary Americans go down. Overall, hundreds of thousands of American lives will be saved during the next decade alone.

And if you take a look at Romney's superPACs, you'll see that HC lobbyists are paying him MILLIONS in order to repeal Obamacare.

Why? 

Precisely BECAUSE the new law makes it impossible to suddenly arbitrarily raise premiums by 40%, only because that allows the insurer to lower the % of care reimbursed compared to what he receives in premiums, and when he does that, he wins a LOT of money on Wall Street. 

From now on, insurers HAVE to spend 80% of premiums on care. As a consequence, premiums can still rise, but only if insurers reimburse MORE. And if you can't afford the new premiums, the biggest HC tax credits in history are there to help you.

I'm not saying that Obamacare is perfect. It isn't, of course, and sweeping overhauls like that always will have to adjust to changing realities during and after their implementation. Moreover, I'm a strong single payer supporter.

But we shouldn't criticize the bill based on rumors only. A lot of studies have ALREADY been done. To know what effect Obamacare will have, you first have to READ those studies. You can't just isolate one fact and then draw conclusions about the entire bill.
01:44 AM on 07/09/2012
I too support single payer, I kind of find the whole concept of profiteering off health insurance rather unethical. I think that reading studies doesn't really tell us anything, studies often tend to find the results they go looking to find. Only time will tell what the true fallout from Obamacare will be. I'm not trying to declare one way or the other who is going to be the big winner from this legislation, just questioning it. Everybody seems to be quite certain of what it will mean, people on both sides of the debate, but IO don't think either side is justified in their certainty.

There was one other point I was trying to express. That IF Obamacare is NOT a plus for the corporate sector, then the claims that the Supreme Court is owned by those corporate interests is simply false. How many people have you seen express the opinion that they are bought and paid for by corporations? I've seen it thousands of times and this decision flies in the face of that belief.... unless it actually does benefit the corporate sector.

But my main point was not so much
05:52 PM on 07/08/2012
The insurance industry wins, and the rest of us have a few crumbs to pick up, but it's better than nothing, and the start of the long road to single-payer.
12:06 AM on 07/09/2012
It is the end of single payer. Making private industry more entwined with the government gives it more reason to fight, not less.
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HUFFPOST COMMUNITY MODERATOR
Stephen Stafford
Be the answer to somebody's prayer!
03:24 PM on 07/08/2012
Has ever been seen a column by such as this one that did not bash, bemoan, or demean the Obama Administration?
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Mgmulet
Beware of people with only one book
03:17 PM on 07/08/2012
I lived in California when auto insurance was made compulsory. One of the main arguments for this was that it would lower auto insurance costs for individual car owners. Once the law passed and was enacted, my insurance went from about $675 to almost $1300, overnight. Unless we adopt a single payer system, this is what we can expect from the insurance industry.
01:49 PM on 07/08/2012
Roberts did not save Obamacare, Roberts made a decision based on his paternalistic conservative approach to government.

Though I'm a Democrat, and I accept the Patient Protection and Affordable Care Act as a better way than we currently have of approaching the health care problem, I do also feel that it was not the right solution to the problem. Forcing Americans to purchase health care from corporations is simply unconscionable. It will, I think, in the LONG run, increase insurance costs.

The only morally correct way of approaching health care is on a non-profit system. Companies that provide health care insurance must not be owned by shareholders (public nor private) seeking to maximise profits.

The highly trained doctors and nurses, and overburdened hospitals (that currently rely so greatly on large donations from high profile individuals with oversized egos) are the ones that should benefit from every single penny of Americans hard-earned money -- not insurance companies who spend so much of that money seeking to circumvent the care they are contractually obligated to pay for for the sake of higher ROI for investors.
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HUFFPOST SUPER USER
kmeccat
life is just a series of adaptations
03:55 PM on 07/08/2012
totally agree!
We needed single payer- not forced large monthly health insurance premiums to cut throat ins co's.
F&F!
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jshop
Come together right now over them.
03:57 PM on 07/08/2012
F&F'ed!
12:50 PM on 07/08/2012
"As one health care lobbyist told Angell, if the Act cuts into the industry's profits, they'll just raise premiums -- something the new law doesn't prevent. When this happens, more and more people will opt out of the system . . ."

Which is why, ultimately, we need to adopt a single-payer system--Medicare for all--in this country. The wider the pool, the greater the benefits for all and the more power for all. Let's strive to get for-profit insurers out of the health care business, period.
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HUFFPOST SUPER USER
LibertyRoy
Listen up! I am a Libertarian, not a Republican!
03:23 PM on 07/08/2012
Yeah, good luck with that.
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Merseysidefella
I read the news today oh, boy
10:58 PM on 07/08/2012
Listen! a Libertarian is a less embarrasing way to say that you are a Republican.
You LOVE the existing system in the US!
What do you propose then? have you been to Europe and seen with your own eyes how public health costs and how it works?
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HUFFPOST SUPER USER
kmeccat
life is just a series of adaptations
03:56 PM on 07/08/2012
agreed-f&f!
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HUFFPOST SUPER USER
DougDeWitt
progressive social-capitalist
12:30 PM on 07/08/2012
I've never been one to accept the pundits' interpretations of pretty much anything, especially when it comes to hot-button issues like health care reform and the Affordable Care Act. I don't like reading "official" summaries either; more often than not the experiences and prejudices of those summarizing an Act as complex as the ACA cloud their objectivity.

So even though the complete text of the Patient Protection and Affordable Care Act is 974 pages long, I was compelled to read it in its entirety in order to find out for myself what it Really says and does. The reader can find it in .pdf format here: http://housedocs.house.gov/energycommerce/ppacacon.pdf

Insurance companies' profits are now limited under the law to 15-20% of total premiums; the balance must be paid out in benefits, or the company will be obligated to send out rebate checks to everyone. As a result, the business model for maximizing the bottom line is simple: Pay out as much as possible in benefits. This is a radical departure from the pre-ACA business model of "Pay out as little as possible, because what you don't pay out in benefits is profit."

I urge the reader to take the time to read the Act before making judgments, to separate the hype and propaganda from reality. For more information on how the ACA might actually BE tweaked: http://americanprogressive.org/2011/08/28/a-social-capitalist-approach-to-health-care-delivery/
01:51 PM on 07/08/2012
This is a very good point, and moots my earlier criticism of the Affordable Care Act. Thank you Mr. DeWitt!
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jshop
Come together right now over them.
04:13 PM on 07/08/2012
No, it does not quite moot your earlier criticism. The law has yet to be implemented; there are many individual states with Republican governors and legislatures proudly declaring that they will not implement the law; and the devil is in the details. The new business model for health insurance will certainly evolve so that industry meets (if not exceeds) its profit goals. Premiums have been rising significantly since the threat of "Obamacare" arose, and the law does not, can not, address all the ways in which such a powerful industry can create profit. Americans will have to wait and see if the law actually results in cheaper, comprehensive health care -- which is the real goal.
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HUFFPOST SUPER USER
DougDeWitt
progressive social-capitalist
10:47 PM on 07/08/2012
You're welcome!
HUFFPOST PUNDIT
Beatriz09
05:19 PM on 07/08/2012
The link you provided only contains 955 pages. Why are you referring to 974 pages? And I remember having seen a bill of more than 2,000 pages ... do you know what happened to that version ... ?

On substance: I couldn't agree more.
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HUFFPOST PUNDIT
den1953
The National Inquire of Politics the GOP!
11:31 AM on 07/08/2012
If corporate America was truly smart they would push for single payer and end there obligation to even purchase health care at all for employees, it would even eliminate workman comp claims and free up capital for them to expand or invest the money in more jobs. The employees could pay into Medicare and be assured that medical cost can be controlled and every procedure costs the same! I don't think the insurance corporations would starve they still have products to sell and that would eliminate special plans and treatment for some Americans............
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11:47 AM on 07/08/2012
Sorry! I accidently flagged you...my finger slipped when I was trying to fave it! And this is such a great comment!
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Hotspot
Righties, you can't eat or drink money.
11:49 AM on 07/08/2012
Completely agree, and soon business will eliminate all health care. LarryKudlow has been preaching since about 2004, business can no longer afford to provide their employees health care.
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Scientistengineer
Degrees in Physics (BS), Chemistry (MS.), and Mate
10:16 AM on 07/08/2012
"affordable health care should be a fundamental right and not a privilege."

Normally a "fundamental right" would not be paid for by someone else against their will Who will pay for this "fundamental right"? Universal health care is a worthy goal but it is not a right or privilege. It is charity.

Note also: Healthcare costs can be made more efficient but they will continue to go up forever. This is one case where success leads to higher costs. Example: I am cured of cancer and live 20 years longer. That is 20 additional years of yet more expensive healthcare (since I am older) - and - I will still die of something! The "end of life costs" are postponed but not eliminated. Still, the 20 years of extra life are worth it to me - especially if someone else is picking up the tab!
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11:51 AM on 07/08/2012
Yep. As long as you've got yours, why should you care about anyone else? Let the hospitals keep paying the tab for the people you choose not to think about, right?
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Al in Madison
My micro-bio does not describe me.
02:57 PM on 07/08/2012
"Who will pay for this "fundamental right""

Not only that, but health care is a service provided by people. If that health care is deemed a right, that means that others "deserve" the work and services provided by the doctors and nurses, etc.
Freedom of speech is a fundamental right. Demanding the work of another human for your own benefit is not a fundamental right.
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Mary Blickhahn
Is this really the best we can do?
09:49 AM on 07/08/2012
Where are we going as a nation?? Do we have a direction that is forward?? Can we dare to dream?? We once told our kids they are able to anything they want when they grow up. But now the advice given by those who were raised to believe they were special and could dream big and told beyond doubt that they could be anything they wanted to be is to tell our kids NO! NO they can not dream No you are not special, and No you are not important to us as a nation. The message is loud and clear. The accumulation of this philosophy is the deep seeded drive to avoiding the need for health care reform so that people can have the care they need. It is also why there are fewer jobs, lower pay and a lack of accountability...