Health Wonk Review spotlights the best healthcare posts of the past two weeks. The most recent edition calls attention to Joe Paduda’s two-part post on Managed Care Matters. Part 1 is titled, “Your Life Without Healthcare Reform.” (See http://www.joepaduda.com/archives/001615.html
Paduda begins by observing that reports from consulting firms Segal and Aon reveal that health benefit costs will jump more than ten percent next year—and that this “shows exactly what we’re in for if reform efforts fail.
“And by 'reform'” Paduda adds, “I mean reform with strong cost controls.”
I would add that, for the past 10 years, the amount that private insurers have been spending on health care has been levitating by roughly 8% a year. If we continue on the current track, this means that in nine years, healthcare costs—and your premiums—will double.
“But when something can no longer continue, it won't,” says Paduda. “When enough Americans lose their coverage, when cost-shifting gets to the point where those left with insurance are paying thousands in premiums to cover those without, when local taxes to pay for teachers' and police benefits get so high that folks are losing their houses, when Medicare finally goes insolvent, when hospitals are collapsing due to the cost of indigent care, when big pharma and device companies are no longer making the gazillions they so richly deserve, then, and only then, will the screaming hordes at Town Hall meetings decide that any health care coverage is better than none.
“While the opponents of reform may well win this battle,” he concludes, “in the long run they will lose the war.”
I agree, and like Joe, I can only hope it doesn’t come to that. If it does, by then health care inflation will have driven a spike into the heart of the economy. If that sounds like an overstatement, keep in mind that White House budget director has told us that climbing health care costs represent “the single greatest threat to the U.S. economy.”
In part 2 of Paduda’s post, “Your Life Without Healthcare Reform,” he sketches what a future without reform holds. Here are just a few details (for links to his evidence, go to the post here: http://www.joepaduda.com/archives/001616.html
n 178,000 small business jobs will be lost by 2018 as a result of health care costs
n If employee contributions stay at their current level (about 30% of premiums), workers will be paying $9000 per year, or $750 per month, towards their health coverage – not including deductible, copays, coinsurance, and services not covered
n More Americans will have to rely on the kindness of others for their health care. Because 65 million of us will be without health insurance.
“Unlike the distortions, misrepresentations, and outright lies being spread by McCaughey, Limbaugh, Palin et al, this is the real deal,” Paduda writes. “So fight against reform if you wish, but don't complain later when you can't afford insurance, your employer can't afford insurance, your taxes are going up to pay for teachers' benefits, and our economy is sinking under the weight of health care costs.”
Kudos to Paduda, who understands what is at stake here.
To explore many other excellent health care posts included in the newest Health Wonk Review, check out the Lucidius Report http://lucidicus.org/editorials.php?nav=20090903a which is hosting Health Wonk Review this time around.