Market Economics and Obama – Is He Dumb?

The President is either very, very dumb, or he thinks that regular Americans are very, very dumb. In common fashion for this President, either of his positions is bad. Very bad.

Here is an excerpt from an ABC News story:

On the “Nightline” edition of the health care forum, Gibson read the president a letter from Republicans on the Senate Finance Committee expressing concern about the creation of a government-run health care plan.

“At a time when major government programs like Medicare and Medicaid are already on a path to fiscal insolvency, creating a brand new government program will not only worsen our long-term financial outlook but also negatively impact American families who enjoy the private coverage of their choice,” the senators wrote.

“The end result would be a federal government takeover of our health care system, taking decisions out of the hands of doctors and patients and placing them in the hands of a Washington bureaucracy.”

“They’re wrong,” the president said, arguing that in a Health Insurance Exchange, the public plan would be “one option among multiple options.”

The concern, Gibson articulated, is that such a plan wouldn’t be offered on a level playing field.

The president rebuffed that, arguing that “we can set up a public option where they’re collecting premiums just like any private insurer and doctors can collect rates,” but because the public plan will have lower administrative costs “we can keep them [private insurance companies] honest.”

I wonder if Obama knows that Medicare reimbursements are some 25 to 50 percent LESS than private sector reimbursements? According to a health care study by the Public Policy Institute of New Hampshire:

In 2005, for a market basket of approximately 450 different services, New Hampshire Medicaid paid 65% of the Medicare payment for the same set of services. New Hampshire Medicaid paid only 48% of the equivalent set of services in the private sector.

In a research paper on dental reimbursements, the American Dental Association rips Medicaid as ineffective, unfair and unable to function in a way that compensates dentists in any reasonable way. This paper is a damning indictment of Mediaid reimbursements compared to those from the private sector.

So who cares if doctors collect fees if the fees they are collecting are a fraction of what they should be? If a doctor gets reimbursed 50% of the money he is owed for an MRI from a government run program, what do you think they are likely to do? Stop taking Medicare, or do fewer MRI’s is my guess – both bad for patients.

Surely Obama knows this?

The ABC article continued…

“Obama said he didn’t understand those advocates of the free market who constantly say the private sector can do things better and are yet worried about this plan.

“If that’s the case, no one will choose the public option,” the president said. He also suggested, however, that the private sector might not necessarily be better, point out that users of Medicare and Veterans Administration hospitals constantly rate “pretty high satisfaction.”

If I were a business and some 20% of my operating costs were wrapped up in providing health care, and all of the sudden along comes a “Public Option,” what exactly does Obama think I’ll do? Can he be so stupid to think that businesses will not dump their employees at the first opportunity?

People will choose the public option because it will undercut the price of private insurance – it will be much cheaper. But, as the old saying goes… You get what you pay for. It will be cheaper because the government will use “evidence-based” treatments, which means – if you are 80 and you need a pace maker, Obama and his bureaucrats will use a math model to decide if you should get it. If the model says you get it, you get it. If the model says you don’t, you die.

Here is the crux of the issue: This plan empowers the government to decide who lives and who dies. And in doing so, they will destroy the health care system that three quarters of Americans are happy with.

So is Barack Obama so dumb that he doesn’t see this? I don’t think so. Doe she hold regular Americans in such contempt, and is he so arrogant that he assumes we’re too dumb to see through this – probably.

I think he knows exactly what this will do, and doesn’t care.


  1. Steven Berger says:

    Why not test market Obama & Dems plan in Massachusetts, New York, California and Pennsylvania or 4 years to see how it works and see how the residences of theses states like it.

    No companies institute a nationwide $ Trillion program without a test first.

    Lets first review the results including cost and user satisfaction.

  2. Exactly. Thing is, they’ve already done similar plans in CA and Washington, not to mention Canada and the UK. It fails. Period.

    This is not about health care, it is about power.

  3. stephen pforr says:

    yes he is a dummy

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