by Blake Seitz
In the words of famous free-market economist Milton Friedman, “there’s no such thing as a free meal.”
It’s time to apply this common-sense logic to health care reform.
The Obama administration claims the final health care package will extend coverage to 32 million formally-uninsured Americans. They also claim the bill will reduce the federal deficit by a significant amount. If we are to take their word for it, they have authored the ultimate health care panacea—a system that greatly expands coverage and remains cost-effective.
I take exception to this second claim.
At face value, it seems substantiated: in March, the Congressional Budget Office (CBO) scored the bill as reducing the deficit by $143 billion over the next decade. A deeper inspection reveals this is not the case.
The problem with the CBO figure comes from the methodology of its creation: namely, the CBO must score the bill on the bill’s terms. This means that, as the bill is written, all manner of accounting trickery can be inserted into its text. The CBO must then score it as truth.
Perhaps the best example of this is the notorious ‘doc fix,’ a provision which would cancel scheduled budget cuts—$208 billion of them—to the Medicare program. Rather than include the fix in the bill, which would add $208 billion to its final price tag, the bills’ authors passed it separately, so that health reform would appear deficit-friendly.
Also included in the bill are multiple instances of ‘double-counting’ (where one sum of money is spent in two places), and an instance where ten years of revenue are used to pay for six years of expenditures.
These dodges, which have been described as everything from “cynical gimmick[s]” (Rep. Paul Ryan [R-WI]) to “the kind of thing Bernie Madoff would be proud of” (Rep. Kent Conrad [D-ND]), really add up in the end.
At the bequest of Republican lawmakers, the CBO scored the health bill a second time, accounting for the inconsistencies within its text. They concluded that the bill will add at least $59 billion (the more likely number is $208 billion) to the deficit over its first decade, and a further $600 billion the decade after that.
Clearly, the authors of Obama’s reform have ‘cooked the books.’ It’s future generations of Americans who will get burned for it.
After all, this is money that must be paid for eventually—if not by us, then by our children in the form of oppressive tax hikes and austerity cuts to the federal budget. Spending now means passing the check to future generations.
Overall, health reform is not a bad thing. The system we had prior to
March 23 inflated premiums to the bursting point and raided the savings accounts of everyday Americans. All Change is not good Change, however.
The change we’re getting puts us on a path to the centrally-planned systems of Europe, which have stifled competition in the E.U. and led to its current budget woes. One example is France, which taxes 20 percent of its citizens’ income to pay for nationalized healthcare; its program still runs huge deficits every year. For the United States, a nation which (rightfully) balks at high levels of taxation, such models are not to be emulated, but avoided.
What change should we be asking for, then? We should ask for a change in expectations. Specifically, we must realize that the two ‘holy grails’ of health reform—expanding coverage and reducing prices—are incompatible ideas.
The Obama administration has chosen to tackle the first objective. This is an admirable goal, but perhaps not a wise one.
As America recovers from a recession, our expectations for reform should have been based on cost, not coverage. Critics may say this is a callous approach, considering the millions of Americans still uninsured, but it is a reality based on common sense: we cannot hope to extend coverage in a lasting, meaningful way if we cannot afford it at its current levels.
It’s time to face the music, CHS. This generation of health care reform is unsustainable. As high school students now and taxpayers later, we must demand financial responsibility from our government, or be stuck with the consequences.