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WH: Insuring Uninsured Will Save $100B

From the unicorn believers at Reuters:

Healthcare overhaul seen boosting U.S. economy

Mon Jun 1

WASHINGTON (Reuters) – Overhauling the U.S. healthcare system to contain soaring costs and expand medical coverage to the uninsured would help boost U.S. economic output, lower budget deficits and raise workers’ incomes, a White House report said on Tuesday

Most working Americans with health insurance get it through their employers and the study said that rising costs increase insurance premiums and cut into workers’ wages. A reform that reins in costs would improve economic efficiency and increase economic output by more than 2 percent in 2020 and by 8 percent in 2030, the report concluded.

That would translate into $2,600 in higher income for a family of four in 2020 and $10,000 by 2030, the report said. Since about half of healthcare costs are paid by federal, state and local governments, their budgets also would benefit greatly by reform, it said.

Providing medical coverage to the uninsured will also help the economy by improving the overall well-being of the work force, [White House spokesperson] Romer said.

"The net benefit minus the cost (of insuring the uninsured) is about $100 billion a year," she said.

Without the overhaul, the number of uninsured Americans would rise to about 72 million in 2040, the report said

The White House is stepping up its efforts to build support for the overhaul as key committees in the Senate and House of Representatives begin drafting legislation.

The report, which is expected to be highlighted at a White House event on Tuesday, will help Obama make the case that the healthcare overhaul will help the overall U.S. economy and make U.S. companies more competitive in global markets.

What a hilarious article.

Overhauling the U.S. healthcare system to contain soaring costs and expand medical coverage to the uninsured would help boost U.S. economic output, lower budget deficits and raise workers’ incomes, a White House report said on Tuesday.

It will make us all taller, too.

Even so, this tossed off sentence jumps out:

Since about half of healthcare costs are paid by federal, state and local governments, their budgets also would benefit greatly by reform, it said.

Perhaps the fact that government is paying for half of the healthcare costs in this country is a major part of the problem.

If so, having the government pay for all of the costs won’t do much to solve it.

Still, this claim takes the biscuit:

"The net benefit minus the cost (of insuring the uninsured) is about $100 billion a year," she said.

Sure it is. Who can doubt it?

And why have past administrations been so blind to this amazing opportunity to save a hundred billion dollars?

The report, which is expected to be highlighted at a White House event on Tuesday, will help Obama make the case that the healthcare overhaul will help the overall U.S. economy and make U.S. companies more competitive in global markets.

Who can doubt that this is a completely objective, fact-based report?

Certainly the White House Council of Economic Advisers were not trying to report exactly what Mr. Obama told them to report wanted to hear.

That would never happen.

This article was posted by Steve Gilbert on Tuesday, June 2nd, 2009. Comments are currently closed.

28 Responses to “WH: Insuring Uninsured Will Save $100B”

  1. catie

    We’re going to save soooo much money by spending so much money. How in the hell does that make any sense?

    • Confucius

      Yesterday, a salesperson told me a $300 stockpot was an “investment.”

      I almost hit her.

    • catie

      Confucius, were you at Williams-Sonoma? Someone there once told me that almost 3K worth of knives were an investment as well. I asked her if they ever needed to be sharpened and she said “of course”. I told her I would stick with my Crate & Barrel knives I inherited from a friend when she got married again (these were remnants of the first marriage).

  2. proreason

    Here’s a plan to save 1 trillion annually on Health Cost.

    Allow anybody over 60 to die.

    Don’t laugh….

  3. pdsand

    Who knows a person right now who is working solely because they need income for medical costs or to generate savings for medical costs in retirement? And how many of those would gladly sit at the house if their medical costs were paid for? How is this an equation that boosts economic output?

    • proreason

      The ecomic output will drop for that and other reasons.

      Many doctors will quit practicing. Many older doctors no longer have to work and will not submit to additional government control. They are already disgusted with the insurance beaurocracy and medicare beaurocracy. Formal rationing won’t be necessary for a while, a) because of retirements and b) because fewer people will choose to become doctors. Just the threat of nationalized health care is making both happen right now. People who want to make money are finding other things to do.

      The wages earned by all health workers will decline, across the board. That would offset any lower costs that could be achieved. A dollar in the pocket of a patient will be a dollar out of the pocket of a medical professional.

      But if any savings are actually achieved, the bulk will result from services no longer performed. People will die. It’s that simple.

      In theory, there are potential cost savings because of inefficiencies in the current system. But any rational person knows that government ADDS additional inefficiencies, not the reverse.

      Health care will be much much more costly and the service will decline sharply.

      Millions of people will die before their time.

    • BannedbytheTaliban

      “Millions of people will die before their time.”

      Only the ones who vote republican.

  4. BannedbytheTaliban

    Is this the ninth or tenth time this administration has used unsubstantiated facts to help buttress their socialist ambitions. Millions of jobs saved….Billions of dollars not spent….Will save each household hundreds of pennies….100 million dollars is a lot of money….Health care reform is being swift boated….

    They are starting to sound like a desperate kid on a high school debate team. The only difference is the average American’s I.Q. has been so blunted by public education that people actually listen to this non-sense.

    • Liberals Demise

      We are talking about the same government that administers Social Security, right?
      This is the same government that administers Medicare and Medicaid, right?

      These political hack lawyers couldn’t run a summer lawn mowing business. But they are doing a damn good job ruining the Greatest Nation in the world all over the almighty $$$$$$.
      These people have NO…….NO business running this country!!

      Lawyers are the very reason the health care system is tanking.
      (greedy sons a britches)
      GRRRRRRRRRRRRRRRRRRRRRRRRRRRRR

    • BannedbytheTaliban

      I blame lawyers for most of the worlds problems. Especially those in congress.

    • Liberals Demise

      One in the same “BEAST”!

  5. Reality Bytes

    I guess smoking crack in the Oval Office is off limits since Hillary banned smoking. They must be snorting it instead.

  6. wardmama4

    First question – where is the free in this equation – go to Medicare – first line is PREMIUM & COINSURANCE RATES. Plus then you go into the Parts B etc – and that ain’t free in my book.

    Go to SS – most of the people getting that for free are illegals, you have to work and have paid into it to get it. (Granted most don’t pay into it any where near what they will suck out – however not as bad as one of the first women to receive it – made two payments and lived to be 100).

    What is the number of uninsured up to now 40 to 47 million? Most of those are the 12 to 20 million illegal aliens. So that would be 28 million left uninsured after not giving non-citizens who are in the US illegally healthcare. Of that 28 million – what percentage is of it is people 1) who can afford it but chose not too? I’m sure that is about 25% (that is another 7 million gone – down to 21 million) or 2) self employed, under employed who can’t afford it because of some of the states stupid laws covering health insurance – may be another 10% – down to 19 million. – that ladies and gentlemen is 0.06% of the population.

    Big woo, cry me a river.

    Next – we have had the wonderful and fantastic government healthcare for years:
    1) it is not free – to my hubby yes, but to the rest of us, no.
    2) yes, we got most everything ‘free’ while he was on active duty – now not so much at all, co-pays, deductibles on top of what comes out of our pension every month
    3) and guess what – the new, innovative stuff – ain’t happening in governmental hospitals. It takes years before medical innovations, surgeries and medications aren’t considered ‘experimental’ – so the care lags behind the general population. And certain ‘groups’ have a real hard time getting any kind of care – I’ve waited for months for certain tests, now it’s years – such great healthcare.

    And remember the stink about Walter Reed? That was Congress’s fault – they put WR on the BRAC (base closing) list in 2005 (in the midst of a war) and since it was on the list insisted that the maintenance was privatized (I wonder which Congresscritter(s) benefited from that contract).

    Now close your eyes and think if you want your care, your spouses care, your childrens care, your grandchildrens care in the financing, decision making and oversight of Congress.

    I sure don’t.

    • canary

      Ward Mama, the real health plan is planned to be designed like military hospitals. The worse thing was how they did procedures with no anesthesia, that would not be done in civilian hospitals. For all I know the VA is better. So, what they mean by facilities comparable to the military, not sure which, but both are below standards.

  7. U NO HOO

    Ted Kennedy makes me sick.

  8. proreason

    “and guess what – the new, innovative stuff – ain’t happening in governmental hospitals”

    and if Universal Health Care is passed, innovation won’t happen anywhere.

    The pace of medical innovation will stop dead in its tracks.

    But Universal Health Care isn’t required to make that happen. Anyone can make it happen and cut medical costs by more than 50% at the same time. Just refuse treatments that have been developed in the last 20 years. Those treatements are the ones that are “too expensive”, so don’t use them.

    But Americans-with-Teddy-Bears absolutely want, no they DEMAND the life-saving advances that cost trillions to develop. They just want somebody else to pay for them

    • Liberals Demise

      I guess it’s back to “bad blood letting” and “leeching” at the barbershops for those of us who can’t afford Universal Health Care.

      Even if it is free!!

    • njyankee

      “no they DEMAND the life-saving advances that cost trillions to develop. They just want somebody else to pay for them”

      This reminds me of a political cartoon I’ve seen:
      —————————————————————————————————————-
      Democrats 1861-“I have a right to force other people to tend my fields! Y’hear me? A right!”
      Democrats 2007-“I got a right to force other people to pay for my healthcare! Y’hear me? A right!”

      “Democrats, seeking an easy life at someone else’s expense for 150 years”
      —————————————————————————————————————-

      I think that about sums up the democrats’ delusion of self-entitlement.

  9. JohnMG

    …..”Who knows a person right now who is working solely because they need income for medical costs or to generate savings for medical costs in retirement?……”

    Well, boys and girls, try this on for size. Those aforementioned who are doing just that–working in order to afford health care insurance–will cease to work once the care is “free”. When they do, they no longer contribute to….a) Social Security, b) Medicare, c) Federal Income Tax, d) State and local income tax, and other sources of revenue needed to meet the obligations of Medicare and SS, just to name two. Who gets to pick up the slack?

    The total naivete of this moron defies description. If the health care we have now costs ‘X’, how can it cost ‘X’ minus ‘Y’ dollars after adding fifty million more people to the patient burden? If this is Obamalogic, then Obama is a dip-shit!

    PS. You’ve got to love this quote.

    …..”That would translate into $2,600 in higher income for a family of four in 2020….”

    By the year 2020, due to Obama’s huge deficit spending, a loaf of bread will cost $2600. We won’t be able to afford lard to spread on it, either.

    • proreason

      John, all kidding aside, i’m convinced the same people who run the climate models are doing the math for the TMCC.

      You can prove anything you want with Excel and a few assumptions.

      300 hundred million people at the mercy of idealogues with spreadsheets. Just as 1 small example….to sell the Depression Stimulus bill, they ran models to estimate unemployment for 3 years. Model A was “do nothing”. Model B was “implement the stimulus package”. Needless to say, with Model A, unemployment went up, but with Model B, wow, unemployment headed down immediately, and like a rock. So what has really happened? You guessed it…..employment is far above the “do nothing” model. But you will never hear that from the msm.

      But I don’t really blame the spreadsheet nitwits. They aren’t the architects of this.

      And neither is Obamastein.

    • JohnMG

      I believe I caught your gist immediately, pro, but the irony of what you wrote fits my situation to a ‘T’.

      My wife has elected to work until full retirement age (66) as long as she can remain employed. She teaches in a small Catholic school and since salaries were frozen this year, she will receive the same pay next year as the one she just completed. We are together on her insurance plan, and this is the reason for her decision. The employee-contribution went up also for the coming year. The school had to eliminate three positions for next year to cut costs in order to remain open. We know she has a job (and a pay check) for the next 12 months. Beyond that, who knows? My construction business has been stalled since last October and I’ve been loaning it money from my personal savings to keep it afloat. I don’t think that’s the way it’s supposed to work. My accountant advised me to file for Social Security early, and that’s what I’ve done, but I have to continue to work to make ends meet. I intend to give it until tax time next year, and if things haven’t improved by then, I intend to liquidate my business assets and cash out. I refuse to continue feeding this “pig” of a government for no benefit to myself or my future.

      What I find most disturbing, though, is that a great many of my countrymen are so devoid of any common sense that they’d put this asswipe in office in the first place. Disgusting whores!

    • proreason

      “My accountant advised me to file for Social Security early, and that’s what I’ve done”

      There’s a little known feature of Social Security called a “do-over” (yes, that’s the name), that you may be able to exercise if you can recover financially in the next few years.

      After you have collected SS for any amount of time, up to your age 70, you can pay back what you have received (WITHOUT interest), and then begin collecting payments as if you just filed. The difference between benefits at 62 and benefits at 70 is about 67% before cpi adjustments. With inflation, the difference could be 100%. In addition, if your wife’s payment is less than 50% of your new one, it moves up to be 50%. Overall, it’s an effective return of 9-10%. You aren’t likely to ever be able to get that kind of safe return in your life. Plus the new payment is still inflation-adjusted.

      For those few people with enough assets at the later age (you would need in the neighborhood of 150-200K), this can be a very advantageous thing to do. Only about 1000 people have done it in the history of Social Security, but it is documented and legal.

      Keep it in mind.

      And I know how you feel about your financial situation. I was destroyed financially in October (for the third time in my life), and have been hell-bent since then to recover. Later this year, I’ll know if I my plan can work. If not, it will be onto plan c.

    • JohnMG

      I’ve clawed my way back from near-financial ruin twice myself. It’s just not in me to roll over and play dead. But I’m nearing age 63, and what I’ve tried to provide for my wife and myself in retirement is disappearing in the distance like a pricked balloon. As for Social Security, we’re at the “two-workers-per-one-claimant” threshold right now. I remember GWB tried to do something vis-a-vis SS during his first term, and the ‘usual suspects’ shouted him down saying there was nothing wrong with the program. Now look at it eight short years later. (By the way, another of my friends also told me of the ‘do-over’. He said if I could bank the money and collect interest it would be to my greater benefit. Unfortunately, I’ve had to use the money to stay solvent, but I guess the option is never off the table.) I doubt by the time the Moron gets done “fixing” it by taxing benefits, forcing FICA contributions on it, reducing benefits, and eliminating the COLA, (not to mention raising the contribution rate, the earnings ceiling, and the full-retirement age for present and future contributors) it will be but a shadow of its former self, which ain’t none too pretty, I can assure you. And to think I’ve paid BOTH HALVES of the contributions for the majority of my entire career, yet I get no more than one of my past employees gets back out of it. So much for helping the small businessman, Barry.

      Land of the Free, my ass!

    • proreason

      Luckily, even old farts can be good shots.

  10. BillK

    Heck, once we have Universal Health Care, GM will be able to afford to give cars away for free!

  11. bousquem

    You want to see one of the biggest examples of why goverment run healthcare is a bad idea is to like Wardmama said above and look at medicare. When they rolled part D out for prescription coverage, it was and still is a nightmare as they never seem to cover most of the drugs people need. Of course medicaid usually will pay for just about everything but I really don’t see everyone getting that under universal healthcare. Watch the thugs and supporters of the left get the nice cushy “cover all” plans and the rest of us who actually will be footing the bill get shafted and get plans that won’t cover anything for medications or procedures without a long nasty fight with the goverment who will just decide you living is too expensive.

    • wardmama4

      Oh bousquem you reminded me of the other downside to military governmental healthcare – Medication – yes it is free (to active duty) – however there are huge limits on those medications. I believe, even though I admit I didn’t read much about the Medicare prescription drug bill, it was highlighted there to a degree. If it is a medication removed from the market – bet your bucks it is/was dispensed at the military hospital. And if it is being the subject of lawsuits for reaction/side effects – again it is probably #1 prescribed drug in the military pharmacy. And you can’t say well, can I take that instead – doesn’t happen.

      And no, in case someone asks – certain VA hospitals are ok, some are good in some areas – but like military hospitals on the whole they aren’t that great. At least during elections or when a Republican is in the WH, that’s what I hear.

      A lot of people are going to be shocked if/when it (Messiah Care) happens. Tragically they will take us with them – as they preferred to quibble over American Idol and if Jon & Kate are going to stay together than even look at what their Idol in Chief was doing to their lives.

      Banks, Mortgages, Insurance, car companies, bonus award caps, salary caps, outright disregard for the 10th Amendment and Rule of Law on Contracts, open borders, illegal amnesty, a racist anti-Constitutionalist gun grabber nominated to the Supreme Court, destruction of businesses through c(r)ap and trade(offs), and now attempting to shove Messiah Care down our throats.

      Can We Call Obama a Socialist NOW?

  12. canary

    This is totally different than what the health bill they’ve wrote up. It’s to trick the public. America won’t be the United States anymore. They’ll be know states, no choices.




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