Health Care Reform Vs Health Insurance Reform
Health Care Reform involved bringing down the escalating health care costs and reforming the dysfunctional health care system. One major reason for the difficulty in bringing down costs is that Congress is reluctant to change the fee for the service method that is currently being used. This method pays doctors and hospitals for quantity of care not quality of care. The more tests that are ordered and done the more they get paid. Nearly two thirds of health care spending goes to physicians and hospitals. If nothing is done, then by 2017 health care costs will be 20% of the GDP (Gross Domestic Product).
The 2008 presidential campaign was full of promises for Health Care Reform. It was one of President Obama’s platforms. The rhetoric was strong and the promises large but it doesn’t appear that the President can bring the huge healthcare costs under control. David Knott, head of Booz & Co’s global health practice states, “The debate started out as a fulsome discussion of all the issues, but now we’ve just punted on the affordability issue. They are kicking that can down the road.”
On March 5, 2010 at the health reform summit, President Obama stated, “If we want to create jobs and rebuild our economy, then we must address the crushing cost of health care this year, in this administration.” Just recently in August the focus changed. At a town hall meeting in Portsmouth, NH President Obama said,
“Health insurance reform is one of those pillars that we need to build up that new foundation. I don’t have to explain to you that nearly 46 million Americans don’t have health insurance coverage today…But it’s just as important that we accomplish health insurance reform for the Americans who do have health insurance, because right now we have a health care system that too often works better for the insurance industry than it does for the American people.”
Health Care Reform has now become Health Insurance Reform. This change in verbage worries some people. It appears that President Obama has changed his focus from containing health care costs to expanding coverage to those without it. Adding health coverage for more people without containing costs will lead to an even bigger mess than we have now. We may need to decide between higher health insurance premiums or higher taxes to cover health subsidies. Some believe that any failure in this endeavor will lead to being forced into a nationalized health care system.
Health insurance consultant Robert Laszewski wrote in his blog Health Care Policy and Market Review:
“For months I have been saying that the health care bills in the Congress have not been health care reform bills but expansions of the health insurance entitlement with some cost containment “lite”…I believe we need a lot more than health insurance reform-we desperately need health care reform-for all the reasons the President said we did when he first opened this debate. But at least he’s now calling it what it is.”
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