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John Stossel
John Stossel
15 Feb 2012
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Obamacare's Inevitable Logic

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False charges about Obamacare don't help.

Like the end-of-life tempest. Former Alaska Gov. Sarah Palin popularized the term "death panels." She said: "The America I know and love is not one in which my parents or my baby with Down syndrome will have to stand in front of Obama's 'death panel' so his bureaucrats can decide, based on a subjective judgment of their 'level of productivity in society,' whether they are worthy of health care" (http://tinyurl.com/ljjzrl).

The charge that the House and Senate health care bills would mandate end-of-life counseling — hence "death panels" — caught on. Rush Limbaugh, defending Palin's charge, said, "(D)eath panels ... it's a great way to phrase this end-of-life counseling" (http://tinyurl.com/n7uvfp).

Republican Sen. Chuck Grassley of Iowa piled on: "You have every right to fear. ... We should not have a government program that determines if you're going to pull the plug on grandma" (http://tinyurl.com/pdxnq6).

But no bill in Congress mandates (END ITLA) end-of-life counseling, much less "death panels." And there's a deeper problem. When opponents of nationalization make such easily refuted charges, supporters of nationalization gain the upper hand. All criticism is undermined. Neutral observers can easily conclude, "If the death-panel claim is false, why believe anything else the critics say?"

That would be a disaster.

There's is reason to be concerned about end-of-life counseling, but the truth is more complicated. Here's the story.

The House bill does deal with the issue. (The Senate Finance Committee bill did until the provision was removed the other day.) Section 1233 amends the Medicare law to add "advance care planning consultation" (counseling about living wills and the like) to the list of reimbursable services (http://tinyurl.com/myotwp). The provision defines "consultation," but nowhere does it require Medicare beneficiaries to participate or authorize death panels. (Grassley voted for a similar provision in 2003 when his Republican-controlled Congress added drug coverage to Medicare (http://tinyurl.com/oq4jqw).)

But even if some conservative Republican critics are wrong about Section 1233, there is good reason to worry about Obama's nationalization scheme.

The reason can be found in Econ 101.

Medical care doesn't grow on trees. It must be produced by human and physical capital, and those resources are limited. Therefore, if demand for health care services increases — which is Obama's point in extending health insurance — prices must go up. But somehow Obama also promises, "I won't sign a bill that doesn't reduce health care inflation" (http://tinyurl.com/co928w).

This is magical thinking (http://tinyurl.com/5sznet). Obama, talented as he is, can't repeal the laws of supply and demand. Costs are real. If they are incurred, someone has to pay them. But as economist Thomas Sowell points out, politicians can control costs — by refusing to pay for the services (http://tinyurl.com/qe8u9c).

It's called rationing.

Advocates of nationalization hate that word because it forces them to face an ugly truth. If government pays for more people's health care and wants to control costs, it must limit what we buy.

So much for Obama's promise not to interfere with our freedom of choice.

This brings us back to end-of-life consultation. As the government's health care budget becomes strained, as it must — and, as Obama admits (http://tinyurl.com/qtqk6z), already is under Medicare — the government will have to cut back on what it lets people have.

So it is not a leap to foresee government limiting health care, especially to people nearing the end of life. Medical "ethicists" have long lamented that too much money is spent futilely in the last several months of life (http://tinyurl.com/mbq3rc). Are we supposed to believe that the social engineers haven't read their writings?

And given the premise that it's government's job to pay for our heath care, concluding that 80-year-olds should get no hip replacements makes sense. The problem is the premise: that taxpayers should pay. Once you accept that, bad things follow.

In the end, perhaps the biggest objection to nationalized health care is the "principal-agent problem." For whom does the doctor work? Ordinarily, the doctor is the agent of the patient. But when government signs the checks and orders doctors to reduce spending, it is not crazy to think that this won't influence their "advance care planning consultation" (http://tinyurl.com/nv7vje).

Freedom is about self-determination. Obama's health care scheme would undermine both.

John Stossel is co-anchor of ABC News' "20/20" and the author of "Myth, Lies, and Downright Stupidity." He has a new blog at http://blogs.abcnews.com/johnstossel. To find out more about John Stossel and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.

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Comments

2 Comments | Post Comment
Dear John Stossel, Good Article. For the life of me, and many others I know, we'll never understand why they think any one person would be responsible for what's happening in America! As for Ms. Palin and John McGain, this is for another day! Serious, Chilling and very Scary is Obama Healthcare, Medicare, Medicaid, and todays' news 'Millions face shrinking Social Security Payments, after they've worked all their lives, paid Taxes, and are to be weeded out so politicians can gain more power and more money! These 'blood-sucking tics' have bankrupted America, through their social and welfare programs, and now they want to starve the Taxpayers who have paid into this system, and is now their only income, since the belly-ups by stockbrokers, like Madoff (just to name one)! Taxpayers, that have a job at present, had better get off their duffs, and sell politicians a 'one-way ticket' to GITMO, after taking their assets to pay off trillions they've borrowed without Taxpayers consent. Send with these 'tics', the local, state, federal prisoners, social and welfare recipients, so they can make or break themselves, and this is, truly, too good for any of them! America and ‘Heartbeat of America' - textile and furniture manufacturing businesses making and selling their goods; therefore, being able to buy homes, cars, and food for their families. Politicians took this away from hard-working Taxpaying Americans with their ‘Free Trade', stating America would become a service country. Really, the only servicing being done now is unemployment, social and welfare offices! Are Taxpayers getting any benefits from this type governing? “We need affordable, accessible healthcare for all!” and “Do something for people who are uninsured” make Taxpayers wonder why these people, writing these articles, don't get together and charge everyone $100.00 to attend a meeting and do something constructive; that is, you could take out a good health insurance plan and look after yourselves, as this is the only way it's going to happen, because America is bankrupt or haven't you noticed! Politicians “Do as we say, not as we do” is quite evident in townhall meetings! They're not interested in me, you nor our comments! I, personally, was “forced” to take Medicare and their drug plan' (real jokes). I was happy with my private insurance plan and the deductible. Prior to politicians' mess, doctor visits were less. The politicians stated “I had to do it their way or else!” Needless to say, I wasn't a happy camper! Medicare, Medicaid, Healthcare disaster, and anything else the politicians can drum up to take your money is very scary! 'Explanation of Benefit' a recent statement I received regarding this government rip off! My Doctor billed for $233.00, Medicare paid $76.20, private carrier paid $19.05! Can you see the problem here? Office visits, paid for by me, the patient, at $50.00, the doctors would be getting a lot more money, less papework, and government wouldn't have access to all your records, which, incidentally, can be used against you - in case you didn't know! In plain English, Taxpayers would be better off with their own insurance and their own money! If I were a doctor, I'd be sitting on the front steps of all politicians until they went back to ‘pay as you go', thus saving trillions of dollars! Better yet, Taxpayers should set up, with a good, honest insurance company, and manage a Insurance Trust for doctors and hospitals, interest bearing Fund (at a bank that didn't take TARP money), have all Americans pay $100.00 each month for each person, and this way, everyone can be insured, pay their ‘fair share', and cut out the stealing by the ‘blood-sucking ticks'. In the old days, when integrity, honesty and respest stood for something people paid their own way, paid their own doctors and hospitals, and America wasn't bankrupt then! I wonder why? “Millions face shrinking Social Security Payments” todays' headlines! Politicians robbed the system to pay for all social and welfare programs, which, of course, these people weren't entitled. Folks, can't you see that Taxpayers are paying for all the extra offices, the trips, the lunches, the fine healthcare, etc. for politicians, while we're doing without? America is now an enslaved nation with trillions of dollars in debt and all because of deceit and greed. I'm quoting John Adams - “There are two ways to conquer and enslave a nation. One is by the sword, the other is by debt.” Surely, you remember history and the Dictator that said “We'll destroy America and never lift a finger!” If this doesn't wake you up, nothing will! At no time have Taxpayers heard the words “We, the politicians, in order to pay off trillions we borrowed without Taxpayers consent, are going to reduce our benefits, salaries and retirements to $12,000.00




Comment: #1
Posted by: Shirley deLong
Sun Aug 23, 2009 11:23 AM
John - I hope this post makes it to you because I want to point out a couple of things that you and your conservative anti-reform cohorts seem to miss, one is that your argument 'that because there are not enough providers and services, we should not give everyone access to healthcare because it would harm those of us who have access already' is mercenary, heartless, and anti-christian. The other point that anti-reformers seem to be avoiding in their fervor to lambast a government mandated insurance requirement, causing fear and panic in the populace of the government making health care choices for them, is that currently those choices are being made by profiteering insurance giants that do not seem to be suffering in this economic downturn. I am a public school teacher and pay $416/month for a health plan that has a $3000 annual deductible for myself. Fortunately my children are insured through their father's work for a lower cost, but with the same high deductible. I cannot afford to go to the doctor because of the insurance companies' need to make a profit. Furthermore, when we do go to the doctor, it is not my health care providers who make the decisions about my care, it is the insurance company functionaries. My daughter's doctor has been told what she can prescribe for my daughter's allergies and asthma, my children's clinic has informed me that if I wanted to have my daughters immunized against certain illnesses and infections that I might have to pay for it because my insurance might not. Why do I support reform, well because as an American who has health insurance, I strongly object to allowing a for-profit industry staffed by functionaries who are not medical professionals and who do not see patients make the health care decisions for us. Quit turning a blind eye, turn around and look at the problem rather than only seeing red that someone is finally doing something about health care. It may not be a perfect solution, but it is a good place to start and start we must!
Comment: #2
Posted by: NB
Mon Jan 4, 2010 8:35 PM
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