Talk Of Liberty

The CBO has returned with the estimated cost of the next ten years of health care reform.  A mere $940,000,000,000.00 dollars for ten years.  This is likely to be completely wrong and end up costing far more for Americans since it will destroy even more levels of competition through oppressive new regulations and mandates.

One overlooked fact regarding this comprehensive reform package is how it will basically cost $1 trillion dollars to cover an extra 31 million people.  I question the idea that those 31 million do not have coverage since half of them are young in between jobs youth who probably do not even need coverage.  Regardless, the average cost per person will be a staggering 3000 dollars per year for ten years to cover them for ten years, but the reality is it will cover them for 6 years meaning it is closer to $5,000 per person.  Keep in mind, half of this pool is a low risk pool with little cost to cover.

The second overlooked cost of HC reform is the fact that the trillion is the cost of 31 million extra to be covered.  What about the other 200 million people who already have insurance?  Democrats state that this will lower the cost of insurance for employers to pay for or individuals to buy.  I ask how?  This bill changes nothing regarding competition or reducing regulations which drive up prices.  The only thing in this bill is more coverage mandates.  This will no doubt cost everyone more in the bigger picture over the next ten years.  Let’s be extremely gracious to the democrats plan and only assume this bill adds additional costs of $100 dollars a year to everyone else,  it would add an additional 2 trillion dollars in cost.  This is an additional 2 trillion dollars that will pay for red tape not creating a job or healthier people.

Because there is nothing in this bill that increases competition and it was written by pharmaceutical executives, that means this bill can only lower costs through price controls which have never succeeded and always lead to rationing with less supply than demand.  This bill will most likely suck at least another 3 trillion dollars out of our economy and divert it to unproductive areas, lowering the overall capacity of wealth generation in our economy.  Small businesses will likely be crushed initially since it will takes months to find loopholes around regulations rather than pay for them.