Obama’s Health Care Speech

Okay, I wasn’t able to hear much of the speech because stupid me forgot my headphones and I’m in a public place where no one will shut up.  With that said, I’d like to comment on a few of the points I WAS able to hear:

1)      The Obama plan will make it illegal for insurance companies to deny based on pre-existing conditions.

Imagine you have a long balloon like you would make a balloon animal with.  The air in that balloon represents the costs of healthcare.  On the left side, you have the cost to the customers and on the right you have the cost to the companies.  If you want to reduce the air (money) in one side, you would have to squeeze that side, thus making it fill the other side.  The same is true visa versa.

The problem is that people aren’t remembering why insurance companies deny based on pre-existing conditions in the first place.  If you could get medical insurance at any point in your life guaranteed no matter what ailments you had, everyone would simply not buy coverage until they got sick and needed it.  You know how Obama says that insurance companies are always ready and willing to take on all those healthy customers, well, those healthy customers are fronting the bill for the unhealthy ones.  If no one had to already have insurance before they got sick then no one would.  Insurance can’t exist without the majority of its payees not using it.

Now, Obama made another point that we need to make sure insurance companies aren’t dropping people when they get sick or watering down their coverage.  That’s the right thing to do.  Medical insurance is a contract between the business and the consumer just like any other service transaction and contract obligations should be upheld.  On that one I say good call.

2)      The public option would only be an option and would not be a government takeover of the health care industry.

I’m going to give the President the benefit of the doubt on this one and assume he really doesn’t want the government to take over the industry and socialize it (it’s a stretch, I know).  Assuming that, his intentions might be sound, but what about the next president?

Medicare and Medicaid may have started out as well meaning policies but they have turned into bankrupt and wasteful expenditures as the President himself pointed out in this address.  Who’s to say that the next administration won’t take that “public option” and push it just a little bit further?  The president brought up social security tonight as well.  Social security began as a government sponsored savings program for people to retire on.  The money went into an interest bearing account in the payee’s name and was not touched by the government at all.  A few decades later, social security became a tax.  The money is used to fund government projects in HOPES that in will be returned by the time the payee needs to retire.  Not surprisingly, that hasn’t happened and the system is not bankrupt.  If you are going to be retiring some time beyond the next couple of decades then guess what, you’re not going to see a dime of all that money you paid into a system that was supposed to be “for you.”

Bottom line here is that people aren’t worried about the government taking over health care this year, but what about the future?  Conservatives are simply trying to stop that foot-in-the-door that WILL lead to a loss of freedom for Americans.

3)      Tax credits so that those who can’t afford coverage will be able to.

This is a good idea but he’s thinking too small with it.  Like I said in my last post, if you give tax breaks and credits to ALL Americans and tell them that it has to go to health care coverage, the insurance providers will naturally try to compete to get those dollars.  Imagine if I gave you a $100 Visa gift card and told you that you could only use it to buy a T.V.  You take that gift card to Walmart, Best Buy, Target, Radio Shack and K-Mart and tell them that you want money to spend on a T.V. and you want the best deal.  I can guarantee you that those companies would be coming up with all kinds of ways to get you to spend that money with them.  They’d offer price matches, they’d throw in bonuses or anything else to make sure you do business with them.  Now, imagine if I gave that gift card to EVERYONE!  Imagine the marketing deals these companies would come up with to lower costs and get you the most quality for that money.

This is what a voucher or credit system would do to help out Americans.  Do you know what would aid in that competition to win those credit dollars—remove the regulations that restrict companies from competing across state lines!  President Obama never once mentioned that (at least not that I could hear).

4)      Crack down on frivolous malpractice lawsuits that make health care more expensive.

No problems here.  I couldn’t agree more.  Moving on.

5)      Imposing a fine on those who choose not to have coverage.

I find it preposterous that President Obama can say such a thing and then go on to say that he is not for limiting people’s freedoms.  He also made the same car insurance connection that Senator Baucus made, but, like I said, you can opt to not have a car.  It’s rather hard to opt not to live.

The only reason he wants to impose such a fine is because of what I mentioned in the first point.  If people can get coverage anytime with any pre-existing conditions then they will simply wait until they are sick.  President Obama knows that this is an unsustainable method so he would FORCE people to get coverage.  I’m sorry, but in America we aren’t FORCED to do anything; that’s just the bottom line on that.

It was a pretty speech, but then, so are all of Obama’s speeches.  Pretty words can distract and subdue and that’s what we can’t afford right now.  These are my points and I know I’ve probably left out a bunch of stuff (I swear I’ll keep headphones on me from now on).

I welcome your comments with your own findings, thoughts and concerns.


2 Responses to “Obama’s Health Care Speech”

  1. 1 Cayci September 14, 2009 at 12:41 am

    Great wrap up! No arguments here!

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