Fixing Health Care?

According to the Associated Press, part of the health care planning of the Obama Administration is concern not to drive the private health insurance industry out of business.

One part of what Obama proposed is to offer government insurance to those who do not have private coverage and want to choose the government plan. It would be modeled on Medicare, but would not simply be an extension of Medicare. Private insurers are concerned that a government plan would present “unfair competition.” The administration responded by suggesting that it would not reduce payments to medical providers.

DeParle suggested one compromise might be that the public plan pays hospitals and doctors rates similar to what private insurers pay. That would address fears that government would use its muscle to pay rock-bottom prices for medical services, allowing the public plan to charge discounted premiums that private insurers couldn't compete with.

Even if the government plan paid private-market rates to doctors and hospitals, it could still cut costs, DeParle said. A government plan wouldn't have to turn a profit, and could also save on administrative expenses.

Noticeably absent from the discussion is reducing cost to the consumer; reducing the cost of medical care to the person receiving that care. And DeParle is an Obama Administration representative.

Also notice that contained in that discussion is an open admission that a factor driving up the cost of our health care right now is “turning a profit” and the administrative costs of the private insurance industry. And I do not hear DeParle making any suggestions for eliminating, or even reducing, those costs.

That’s more support for the insurance industry than it is for the taxpayer.