Health Care – From the Folks Who Brought You “Cash for Clunkers”
I made a Facebook status update earlier today where I said I hoped that the mismanaged “Cash for Clunkers” program (C4C hereafter) had caused some people to think about whether they wanted the same people in charge of their health care. Of course, with the limited space for status updates, and my double-dose of verbosity (which is genetic, I thnk), I really didn’t have room to flesh out my thoughts on the matter.
A review would be in order here. C4C is a government program that gives incentives for people to trade in cars deemed older and less fuel-efficient on a new car that is more fuel-efficient. A consumer group has a FAQ. A controversial provision of this bill is that these trade-ins must be completely destroyed – no parts can be salvaged at all, no tires, no body parts, nothing. One of my Facebook friends described the process they used – drain the oil, replace it with water, and run the engine until it seizes up. Anyway, this program was funded at $1 billion to go from July 24th to November 1st of this year. Yet, a short week later, the news begins to break that the program is almost out of money. There is talk of adding another $2 billion – that’s $3 billion of our tax dollars to buy and destroy perfectly functional cars, because they don’t fit someone’s idea of a “good car.”
Regarding the way these cars are being destroyed – this is the classic broken window fallacy, the economic theory that says that vandalism is good for the economy. A boy breaks a window; the shopkeeper must get it replaced. This benefits the window maker, which can benefit others in turn. However, the fallacy is that it does not look at what the money that the shopkeeper had to use to fix the window might have otherwise been used to do. For example, while the window maker advances, the shoe maker and baker, who might have received the money the shopkeeper would have spent, are hurt. (As an aside – wouldn’t it be better to keep the window maker in business by providing windows for new business? Oops – that was the greedy capitalist in me.)
Now, let’s look at the health care issue. Nearly every proposal I’ve heard coming from Washington decries the number of uninsured people in this country, how much we pay for health care, and how bad the insurance companies are. There are many ways to go about this; I’ll look at each of these in turn. As we do, keep in mind what happened to the “bad” cars in C4C.
We hear bad, bad things about the number of uninsured Americans – the latest numbers have it about 47 million. That’s a lot, right? Maybe, but maybe not. One thing that these stats do not take into account is the number of people who choose to be uninsured. Many college students are uninsured by choice (or by lack of giving it a thought – that would have been me right after high school!). The census bureau said that the number of college students was 15.9 million in 2004. How about single people? I certainly didn’t worry about health insurance when I was single. The census bureau said in 2007 that of the 92 million single people, 60% had never been married at all, and 15 million were over 65. Certainly not all of these are without insurance, but a good many may very well choose not to have it. That leaves the ones that can’t afford it – we’ll look at ways to make it more affordable in our third point.
Next up is how much we pay for health care. Yes, just like our military prowess, America is #1 in the world at spending per-capita on health care. We are also #1 in the world at medical advances and technology. These things do not come for free – what is the incentive for a company to develop the newest bang-up drug if they aren’t going to be able to make enough money on it to fund the research it took to develop it? Altruism may be nice, but it doesn’t put food on the table. While the exchange of money for services seems to be distasteful to some people, you’ll look long and hard to find a better motivator. Why do doctors put themselves through years and years of education after most people are already out working? For a few, they may just love their fellow man that much, but for the most part, it’s that American dream of making it, and having the things they want. How does one acquire things? Money.
All this talk about money brings us to those evil, horrible insurance companies. I’ve dealt with them just as many of you have, and it’s frustrating to have things denied because a t wasn’t crossed or an i dotted. However, let’s look at what we expect from insurance. Does homeowner’s insurance cover carpet cleaning, painting inside and out, and re-weatherstripping the windows? Does auto insurance cover oil changes, new tires, detailing, and radio upgrades? Then why must any health insurance cover check-ups? The litany of required services on some insurance providers is astounding – and, the consumer has no choice. I don’t think I could go to a state in the Union and get an insurance plan that didn’t cover maternity; as a male, I really don’t think that’s coverage I need. People view health insurance completely different from any other insurance. Why is it that, if something exists, people think that their health insurance should cover it? Some of these treatments or experimental procedures weren’t even in existence when the policy was written, but people think that they’re entitled to them.
This is where affordability comes in. Let insurance companies customize plans, so that people can buy just what they want (catastrophic coverage, for example) and exclude what they don’t (TMJ). End the ridiculous “discounted rate” on the billing – doctors have artificially raised their rates because they know that, for the most part, their patients’ insurance will only pay a portion of it. The price should be the same for someone paying out-of-pocket as it is for the insurance companies. (Back to auto insurance, does Ford offer Allstate a discount? Yeah right.)
What happens with this is the regular free-market benefits. First, the availability of health care goes up, because the people who opted out of “hypochondriac” coverage will not take up a doctor’s time for every sneeze and sniffle. Second, there is an incentive for providers to get into the business, as the playing field is more level and less laden with red tape. Third, people will be so happy that we’ll never have to hear about this ridiculous socialized health care mess ever again! (Well, okay, maybe that last one is a stretch.)
Now, let’s look at C4C health care. You’ll have politicians and government paper-pushers determining what’s covered and what isn’t, with their decisions holding the force of law. The thresholds will be hard – the qualifying line is drawn in the cement as it hardens. It will cost 10 times what “they” estimate – at least. Wait times will be through the roof, as anyone who qualifies for something will get in line for it, whether they need it or not. Over five or ten years, there will be a shortage of providers, because doctors will decide that law is a much more lucrative field. And, one of the founding principles of our nation will have been sacrificed on the altar of good intentions.
I know which one I’d prefer.
Add a comment »7 comments to this article
Some Other Places to Find Me
I Support
Tennessee Football
2011 Season — NR
(5-7, 1-7 SEC)
Jeff Gordon®
NASCAR Driver
2011 Season — 8 (-116)
Colorado State Football
2011 Season — NR
(3-9, 1-6 MWC)
August 5, 2009 at 11:34 pm
Let me see if I’ve got this straight. The C4C was amazingly successful. Tens of thousands of people used it, bringing money in to local car dealerships (and junkyards, for that matter). Ford appears to be about to post their highest earnings in years.
And it makes you cranky that it was more successful than imagined? That’s like getting angry because the free coupon for the brothel might cause you to become chafed in a sensitive area.
I’ll assume that you know that the extra money for the C4C program is coming from the stimulus bill, right? So it’s already been allocated. It’s not “extra tax money” or whatever you’re trying to get at.
You are correct in stating that the US spends more on health care. But the US ranks 27th in life expectancy. The next nearest, Switzerland, pays only 70% what we do, and ranks 4th; Cuba has the same life expectancy as the United States, and essentially pays nothing, comparatively. The longest life expectancy can be found in Japan, where they pay less than half what America pays.
So obviously, things could be done more efficiently.
And actually, as far as leadership in medical advances go, again, we’re looking at Japan. Where they already have universal health care, and live longer than we do. Sorry.
Oh, incidentally:
A controversial provision of this bill is that these trade-ins must be completely destroyed – no parts can be salvaged at all, no tires, no body parts, nothing.
But you already provided a link to a FAQ where it explains that only the engine and drive train have to be destroyed. So, you know, try not to fall for the latest GOP talking point, OK? Like this one:
You’ll have politicians and government paper-pushers determining what’s covered and what isn’t
Which goes along with “You don’t want a bureaucrat between you and your doctor!” Of course, you already have insurers standing between you and your doctor, and deciding what’s covered and what isn’t. So your point is kind of moot, isn’t it?
And your conclusions about what will happen to healthcare are a little silly, too, since you can look at other countries to see that your prophesies didn’t come to pass there, did they?
So, overall, documented facts, or GOP talking points? I know which one I’d prefer.
August 6, 2009 at 5:34 pm
Nameless Cynic… heh… nice moniker.
See the broken window fallacy – where else would that money have gone? And, when you’re talking about car purchases, you’re not even talking about real money, you’re talking about credit being extended. Americans are already in debt up to their eyeteeth – let’s encourage them to dig deeper!
What needs to happen, with all the artificial inflation that we’ve seen over the past few years, is some correction. People need to recover, save money, and then begin to spend it again. Destroying perfectly good cars, giving away tax money, and making the people more indebted is not what this country needed.
And are you aware of our ranking when you remove homicide and motor vehicle accidents? No health care bill is going to fix those.
I have personal knowledge of at least two dealerships whose understanding is different from that. Surely that wouldn’t happen with universal health care, now would it? No talking-point falling here, just a dose of real life – something to which most liberals are allergic.
No, it’s not. First off, with a private health insurance plan, you’re a peer, and if you have big problems, you can take them to the government. To whom do you appeal when the government says no? Second, right now I have the choice to obtain coverage or not. Why force someone to take something they’ve decided is economically inexpedient for themselves? “Oh, you think it’s a waste of money, but don’t worry – this is other people’s money!”
The only thing the government does well is defend itself – but every time we do that, the liberals get their knickers in a wad. Canada and Britain both have the sorts of programs that people want to bring here, with long wait times and difficulty getting the procedures they need. I’ll admit I’m not familiar with Japan – but I wouldn’t trust our government to try to set up a system like their, no matter what party is in Congress or the White House. Furthermore, I would bet 100 times out of 100 that the free market will get a better, more cost-effective, and more efficient solution than a government mandate.
It is an area in which our government simply does not have the legal basis in which to meddle. Show me the Constitutional provision that says that it’s the government’s responsibility to insure the health of its citizens. You can’t, because it’s not there. But, we’ve ignored the Constitution for so many years now, why start now?
August 6, 2009 at 7:55 pm
Oh, I don’t know. “Promote the general welfare” is one of the clauses in there. You’re saying that doesn’t count?
On top of which, I thought you claimed to be a Christian? Read Matthew 25:34-46. And then tell me why, if Jesus supported univeral health care, you don’t?
I’m just curious.
August 7, 2009 at 7:52 am
Two points:
1) Jesus was saying that it is our duty to help someone in need — or just plain help. He was not commanding us to tax everyone around us to force my duty on everyone.
2) The big problem that everyone seems to be overlooking is that overall, US citizens are lazy, and have been taught over the years that *nothing* is their fault. We have become a nation of victims with no personal responsibility. Look at the FL voting fiasco: the nation accepted the excuse that people were essentially saying, “I’m too stupid to vote.”
“The ultimate result of shielding men from the effects of folly is to fill the world with fools.”
– Herbert Spencer
August 7, 2009 at 6:39 pm
Really? Is that what He’s saying?
Boy, it must really be hard for you when your government is being a better Christian than you. It messes with that whole “separation of church and state” thing for you, doesn’t it?
(Oh, and you got the whole “Florida voting fiasco” completely backward – if the nation had accepted that, Gore would have been president, and Bush wouldn’t have had a chance to destroy the economy.)
August 7, 2009 at 7:07 pm
You do realize there is a huge difference between “promote” and “provide,” correct? And I’d quibble over interpreting “general welfare” to mean “health care for everyone.” does not equal “Promote the general welfare” “Provide health care for everyone” That’s simply not the way our country was designed, and nothing the founding fathers wrote indicated that they felt this way. In fact, they felt the exact opposite – the less the government intruded in citizens’ lives, the better.
Jesus did not support universal health care. I won’t quote the entire passage (as it looks like you already have), but those are directions to individuals, not entities. Salvation is a personal decision for faith in Jesus Christ, and cannot be done on your behalf – it has to be your decision.
In the same way, these commands are not commands for a government. If you set it up to come from the government, you pay your taxes and forget about it. The problem with this is two-fold. Number one, it’s a cop-out – the direction was to us, not our government. Number two, if everyone is paying their taxes and thinking “someone else” is helping, the help doesn’t get done. No, the mandate from Jesus in that Scripture is for each person, individually, to actually get their hands dirty, and help those who have not been as blessed as we have been.
…jumping ahead to your reply to Eric…
Absolutely! So how come the same people who think it means the end of our country if we pray before a football game (which costs $0) think that, in this case, we need to spend billions to provide something for people who, for the most part, are completely capable of providing for themselves? And, for those that aren’t, that’s where Matthew 25 comes in. (That command tells us to help “the least of these.”) Maybe that’s how we can turn the left away from this awful plan – accuse them of installing a theocracy!
You’re saying that Gore, the person who still wants to kill our economy with “green” regulations based on flimsy science, would have been better on the economy? Believe me, you’ll find no love here for the way Bush handled the economy, particularly in the latter days of his administration. (I can’t speak for Eric, but that’s my feeling on it.)
But, I’ll second Eric’s point – from the time I started voting until the time I started voting absentee, I’ve voted on many a butterfly ballot. They’re not confusing at all. Also, every recount in Florida still has Bush winning, and many people confirmed that the only way they could make a “hanging chad” from a ballot was by putting 3 in the machine at one time. For the record, each person in an election is only supposed to get one vote.
August 11, 2009 at 11:48 am
@Nameless Cynic: Cash For Clunkers… Successful? You mean all of those people that CNN showed as trading in their 1990 Ford F-150s (good) for new trucks (good?). Or was it the Cash For Clunkers program that people on YouTube were showing HOW TO SCAM? Or.. was it some other program? Maybe it should have been called the CAR DEALERSHIP BAILOUT PROGRAM because that is ALL that this, yet again, absurd government idea was about. Because, why not get people who are in desperate need of jobs a new car?? Another recurring payment wont hurt you much! There, there… its OK, its stimulating the economy!
That program, my friends, was brought to you by those who created the following wonderful entities:
-FEMA because when you’re in deep doo-doo you can count on your government eventually showing up weeks later with little to help
-US Postal System because you have nothing better to do but wait in line 30 minutes for the next available rude person, Department of Education – because we would rather spend 90% of our day disciplining the children so you dont have to,
Congress – because who needs to read these bills anyway? We’re going on vacation again – in our private jets no less.. but you citizens discuss this global warming hoax because we need more sham programs to fund more corrupt politicians and this time we’ll USE the science world to achieve it!
-DMV because where else are you going to go while you wait for us to approve your license and registration?
FBI because we dont need to talk to no stinkin CIA people;
CIA – because we dont need to talk to no stinkin FBI types… oops 9/11…. oh well.
And soon to come:
-National health control system. Lord Obama will provide for you because you just got cancer at 65 and he cares enough to tell you that you’ll only be expected to live to about 72 anyway so save the government some money and dont take those medications, just pop these pain pills until you croke.
OH, and dont let me forget (among the plethora of other absurd government disasters) that if you know anyone who doesnt agree with Lord Obama, you are to report them immediately to the new White House email address (yea, the same one thats basically frozen the entire government’s email system now that millions are sending in their snitch mail). He’ll see fit to correct those citizens who arent aligned with him.
Hmmmm… sounds to me that instead of health care reform, banking reform, auto industry reform and the rest, we should be concentrating on GOVERNMENT REFORM. Starting with firing Pelosi next year. Reid and their cronies need to go as well. And following that, evicting Obama on his ass in 2012. I dont really care what “party” the next president is from so long as he/she HAS A BRAIN and a passion for this nation that extends above and beyond their OWN PERSONAL GAIN. Same goes for Congress and the Senate and all of the elected people down the line – right to our local mayors and governors.
The sad state of this nations Governors is yet ANOTHER topic. Who’s flying off to what country to try to get his winkie wet with some reporter or who’s speeding on the state highways flipping and rolling into embankments to who’s diddling around with call girls or who’s traveling around Europe and Asia on taxpayer dollars……….. it doesnt end. But it needs to NOW.
If you dont give a damn about anything, remember one thing: our nations founders and those who we hold dear to giving us the freedoms that we enjoy each and every day also became fed up with the status quo of the government in power at that time. They saw fit to commit acts of treason and knew fully well that the king of England would have their heads for signing that Declaration of Independence and STILL DID SO in order to rip themselves away from that government’s control.
I would not be shocked in the very least that the current environment is the perfect petri dish that is cultivating the evolution of the next set of national saviors. I wouldnt be shocked at all.