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Monday, May 11, 2009

The Flaw in Halthcare Reform

There is a basic flaw in almost all arguments regarding the delivery of health care in the US. Nearly every proposal involves insuring the "uninsured."

But is the goal to have people insured, or to receive healthcare?

By any application of logic, the problem with rising healthcare costs is the insurance itself. For example, health insurance is a separate monetary-based industry riding on the back of healthcare, adding additional costs. And it's a profitable venture - have a look at the annual profits of all the healthcare insurers. You won't see them asking for a bailout.

If politicians really want to do something about heath costs, then start doing something to increase efficiency in the delivery of healthcare to all Americans - which means removing unnecessary costs. That means insurance.

Obama says healthcare overhaul could save trillions | Reuters:
"Revamping the healthcare system and expanding coverage for an estimated 46 million uninsured Americans is one of Obama's top domestic priorities. He is pushing his allies in the Democratic-led Congress to pass an overhaul of the $2.5 trillion healthcare industry by the end of the year.

There is broad agreement within the industry and among lawmakers that the health system needs to be improved but big differences of opinion exist on how to go about it.

A centerpiece of Obama's health proposal would be a new government health insurance plan that would compete with private insurers. The administration says the public plan would help cut costs by introducing competition and cover the uninsured."

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