iPhone app iPad app Android phone app Android tablet app More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Rosemary Gibson

GET UPDATES FROM Rosemary Gibson
 

The Individual Mandate Isn't the Problem: Wall Street In Your Health Care Is the Problem

Posted: 03/28/2012 4:49 pm

If the individual mandate cost $25 a month, would the Patient Protection and Affordable Care Act be debated in the U.S. Supreme Court this week? Perhaps not.

The individual mandate is a distraction from the real issue that the health care reform law didn't fix: health care is too expensive and unaffordable.

See what Secretary of Health and Human Services Kathleen Sebelius said on ABC News last January when she was asked what people should do when their health insurance premiums increase too much.

She replied, "They should contact the governor of their state and state legislature demanding that those laws be changed."

The health care reform law didn't really make health care affordable. It papered over the real cost with subsidies.

Why isn't health care affordable? Health care has caught the Wall Street fever and become just like the banks. See how health care and the banks operate the same way, documented in The Battle Over Health Care: What Obama's Reform Means for America's Future.

Just like the banks, health care has its own price bubbles, toxic assets, too-big-to-fail syndrome, conflicts of interest, the ratings game, and the tendency to privatize gains and socialize losses.

The result? Even with the reform law and subsidies, the cost will still be high for many Americans.

A single 60-year old woman earning $48,000 won't be eligible for subsidies and will pay more than $10,000 a year for health insurance, in addition to out-of-pocket expenses.

A family of four with a 40-year old head of household earning $48,000 will pay more than $3,000 a year even with subsidies.

Health care reform merely transferred the risk of bankruptcy of individuals to the risk of bankruptcy of the federal government. And there is nothing in the health care reform law to stop the bleeding.

This is what Americans should be protesting about -- call it Occupy Wall Street Health Care.

Rosemary Gibson led national quality and safety initiatives at the Robert Wood Johnson Foundation in Princeton, NJ for 16 years. She is the author of The Wall of Silence and The Treatment Trap: How the Overuse of Medical Care is Wrecking Your Health and What You Can Do To Prevent It.

 
 
 
If the individual mandate cost $25 a month, would the Patient Protection and Affordable Care Act be debated in the U.S. Supreme Court this week? Perhaps not. The individual mandate is a distracti...
If the individual mandate cost $25 a month, would the Patient Protection and Affordable Care Act be debated in the U.S. Supreme Court this week? Perhaps not. The individual mandate is a distracti...
 
 
  • Comments
  • 20
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
03:51 PM on 03/30/2012
16 Things We Must Admit If We Really Want To Fix The US Health Care System
http://vthirdp.blogspot.com/2012/03/16-things-we-must-admit-if-we-really.html
photo
HUFFPOST SUPER USER
jdjay
08:17 AM on 03/30/2012
I agree. It is wall steet's reckless behavior that is the primary virus sucking the efficacy out of the healthcare system and every other system.
05:29 PM on 03/29/2012
If you want to talk about Wall Street and health care, make sure you know where the bulk of the money goes: pharma and device/supply makers. Even hospitals are making more than health plans (and that's the for-profits, nonprofits make even less) - scroll over to the "net profit" column: http://biz.yahoo.com/p/5conameu.html
photo
BBackSoon
Hello, I must be going.
11:14 AM on 03/29/2012
Why that's Socialism!

And I like it!
09:52 AM on 03/30/2012
Me, too! It's cheaper.
photo
HUFFPOST SUPER USER
notdarkyet
End the Drug War.
08:50 AM on 03/29/2012
It will all come to a head soon because it is unsustainable:

Health care spending is rising faster than economic growth in leading industrialised countries, with higher expected medical costs set to impose tough choices on governments, the OECD said Tuesday.

Health spending in the 31-member Organisation for Economic Cooperation and Development jumped from 7.8 percent of gross domestic product in 2000 to 9.0 percent in 2008.

The OECD attributed the upward pressure to technological changes, population growth and ageing.
The study found that the United States spent 7,538 dollars per person on health care in 2008, more than double the average 3,000 dollars for all OECD countries.

The next biggest spenders were Norway and Switzerland, spending about 50 percent more than the OECD average.

"Given the urgent need to reduce their budget deficits, many OECD governments will have to make difficult choices to sustain their health care systems: curb the growth of spending on health, cut spending in other areas or raise taxes," the OECD said.
http://health.yahoo.net/news/s/afp/oecdeconomyfinancehealth
photo
HUFFPOST SUPER USER
notdarkyet
End the Drug War.
08:37 AM on 03/29/2012
This has always been my argument from day one. We need to deal with costs, but we worship the free market even if that means people are denied or are priced out of HC. Money rules in this country. Until we rethink this ideology we go on being gouged.
08:16 AM on 03/29/2012
US pays 2-3 times more/each citizen for health care than ANY other country in which there is Universal Health care for ALL the citizens! Why? The complicated and convoluted health "care" system is designed to obfuscate facts and siphon money from CARE by parasitic intermediaries with high salaries who work for insurance and pharma companies and hospital industrial complex.

Diseases and suffering are source of large incomes and bonuses for people who are gaming the system and costing US citizens in money and health! The health outcome from this super-expensive NON-care is 37th in the world right behind Cuba, which spends on hundredth of what we pay in USA.

Universal health care with NO intermediaries, but single payer government to chosen direct providers (doctors and hospitals) of care is the only way to simplify and improve the system. The complicated and convoluted Obama Health Care, for which you need several lawyers to interpret what is covered. More work for lawyers is not a solution!.

Businesses should not have to pay for their employees health care but it should be paid from savings on killing machines, once we stop insane expenditures on military weapons and contractors. NISS approach is the ONLY way to go: Make It Simple, Stupid!
07:57 AM on 03/29/2012
You are correct that the healthcare debate has only focused on how to raise revenue and has ignored the underlying escalation of costs throughout the medical-industrial-complex, the stakeholders being the drug, insurance, hospital and doctors assns. The Medicare system has some means to control overbilling, overpricing and outright price gouging, and so does the socialized systems in Western Europe and the rest of the first world countries.
HUFFPOST SUPER USER
Seymourhiney
03:09 AM on 03/29/2012
healthcare , something the GOP buries their head in the sand over.
HUFFPOST SUPER USER
Seymourhiney
03:08 AM on 03/29/2012
Healthcare can never work if individuals in the industry reap multi million dollar salaries. Medicare operates at 3% administrative cost, the health care insurance industry operates at 35% administrative cost. Thers goes your transplant to a private jet. Wake up America-single payer is the only way.
11:07 PM on 03/28/2012
Thank you for the insightful article which have more succinctly and clearly stated an inherent discomfort with the arrguements.
As I listened this week these are some of the questions I am struggling to reconcile:
1.how can one industry get the govt to make everyone buy its product?
2. If the govt acknowledges it is important to provide the service to every American so much so that there is a mandate for citizens to buy it and yet the govt doesnt provide the service for everyone??
3. why is the govt demanding we all but a product that is well-evidenced to be an unreliable product at best and unsafe poor quality product at worst?
4. Would it be more helpful to spend this time publicly arguing on how/why the providers are overcharging consumers who do purchase the product?
iflew
Pro Publiae Bonae
07:19 PM on 03/28/2012
Most North European countries have superior care for less. Our expenses are the result of call it what you may, to me a $500 box of facial tissues is price gouging, and that is only a starter..I'm sure other folks have rally nasty stories.

Here's one: "Patient gets medical care. Office of physician bills patient because bill is 'Overdue'. Later insurance company pays Dr's. office. Patient and insurance each pay entire bill. Doctor says 'Don't ask me I don't do the billing.'. No wonder U.S. care is double what every other civilized country pays. Insurance company says,"We must pay Physician, can't pay a patient for prior payments, get it from Dr.". Doctor says, "Don't ask me I don't do the billing.". Single payer system would fix the whole mess. No wonder Medical care has Socialized.
This user has chosen to opt out of the Badges program
07:46 PM on 03/28/2012
So true, the same is true of physicians recommending unnecassary procedures n=because they pay more, yet GOP blame the patient for relying on advice of doctors, who have 8 years of education to give that advice that the average american doesnt have
photo
My Mate Pat
Nobody's Nationalist
08:05 AM on 03/29/2012
In the US, the physicians are still being paid salaries based on a system that is affordable only to the super-rich, just as it was in Europe 100 years ago. For universal healthcare to be affordable, the doctors will have to earn merely great salaries, instead of the excessive remuneration they enjoy now. They know this, and they don't like it, which is somewhat anti-hypocratic of them.
HUFFPOST SUPER USER
calm truth
07:08 PM on 03/28/2012
Excellent reality check from this author who gets it. Obamacare has and will do little to nothing to bend the cost curve on health care. The large health industry cartels are more firmly entrenched than before. Witness the run up in health insurance stocks with the passage of Obamacare and the recent sell off of these same stocks as the Supreme Court questions it's legality. Frankly I hope it will crash and burn so we can get closer to debating what really needs to change with the Nation's health care and it's delivery system. I am afraid there will be no real economic recovery to main street America until we dismantle the corporate cartels that control Washington and reverse the dangerous direction this Country is moving. The status quo "leadership" we have in Washington (Republicans & Democrats) is not up to this task and must be replaced with those that are.
photo
Peter Combs
Amused by the illogical..no, NOT a Republican
05:40 PM on 03/28/2012
We coould easily cut the costs by adopting the same programs in place in the EU..and Great Britain, they pay an average per year of 50% of what we pay....

Sadly with all the lies about the systems used in Europe, dim witted Americans believe it...Those fabricated storys about people waiting for years for treatment etc..pure rubbish, I know I lived over there...Its BETTER than our system from start to finish...its the AMA and Big Pharma..they are terrified of it.
This user has chosen to opt out of the Badges program
07:48 PM on 03/28/2012
Too many americans dont even know where europe is or can name a few of the countries
05:35 PM on 03/29/2012
Some of us can do better than name countries - we can tell you that Americans would never countenance the two-tier systems in England, France, German, Switzerland and others because they aren't "fair." Rationing seen in European countries would cause riots here.

Health care in European countries isn't gold-plated Medicare for all, which is bankrupting us because of unit costs and wasted care. It's basic health care for all, and if you want more coverage, you buy it. And their governments/taxpayers still have a hard time footing the bill.
This user has chosen to opt out of the Badges program
photo
05:34 PM on 03/28/2012
Until our government applies the same price gouging laws in the medical industry that covers many other industries then medicaid, medicare and the entire concept of health insurance is doomed. If hospitals werent allowed to charge dieing patients $650- for a bottle of aspirin or $450- for a box of bandaids then many of us wouldnt even need health insurance.

I had a close family member spend 6 wks in shock trauma for a puncture wound. The total bill was close to $350,000. $80,000-$100,000 of that was for pills. The same pills would have cost $1500- in any other civilized country in the world.

As for the awesome health care law that half of the population praises Your welcome. They doubled my premiums in the past two years apparently to cover the cost of people that are unisured for various reasons. At the same time that my premium doubled my deductible went from $500- per year to $2500- per year.

I know theres probably too much relevant information in my post for an msm site but the way things are going I dont think its really going matter in another year or two.