Forbes is going with Obama on healthcare

Forbes magazine (ya know, that really respected one) is going with Obama on health care in an article called, “Obama Can Cure Health Care’s Ills.”  Here’s what you need:

Democratic presidential nominee Barack Obama wants to address the health care crisis head-on. Like Franklin Roosevelt, who faced equally large challenges, Obama will try many strategies and be guided by results, not predetermined ideological conviction. The strategies he proposes fall into four general areas.

One element of reform is information: Doctors, patients and administrators simply do not know enough about which treatments work and which are ineffective or harmful. An estimated one-third of medical costs go toward care with no value. Obama proposes to jump-start the long-overdue information revolution in health care with $50 billion to computerize the medical system and spread the word about best practice.

A second element is to fix perverse incentives in medical care. Doctors and hospitals today are paid for performing procedures, not for helping patients. Insurers make money by dumping sick patients, not by keeping people healthy. Obama proposes to base Medicare and Medicaid reimbursements on patient outcomes in a coordinated effort to drive the entire payment system toward paying for improved health rather than just more care.

A third element is to help the small players–individuals and small firms–get the same deals as large buyers. Obama proposes purchasing pools where individuals and small firms get the same low rates as large firms and sick people get coverage the same way as the healthy. Our current system of excluding the sick from coverage does not make their costs disappear but rather assume other, less efficient guises.

A fourth element is prevention. In today’s health-care market, less than one dollar in 25 goes for prevention–despite the fact that three-quarters of medical care is for conditions that could be prevented. Guaranteeing access to preventive services will improve health and, in many cases, save money.

As the reforms take hold, costs will drop. As costs drop, insurance will become more affordable. Millions previously priced out of the market will be able to buy insurance. Add on tax credits for those still unable to afford coverage and for small businesses, and everyone will have access to affordable, portable insurance.

By contrast, Republican presidential nominee John McCain believes that the central problem in health care is that people have too much insurance and, because of it, consume too much medical care. McCain seeks to reform the health care system by taxing and punishing businesses that offer employer-sponsored insurance. Once they are forced to drop coverage, he holds, their workers will find themselves in the non-group health insurance market, where they will buy less generous plans and go to the doctor less often. Modest tax credits would help some, but nowhere near all, of the uninsured afford coverage.

We are skeptical of the value of McCain’s plan for three reasons. First, the tax increase McCain proposes and the resulting dislocations it creates are the last thing American business needs now, when it’s in the midst of a severe economic crisis. Second, the non-group market is nowhere near as rosy as McCain makes it out to be. People who buy insurance in that market now are risk rated, see their pre-existing conditions excluded from coverage or priced higher and are never secure in their coverage. The McCain plan would amplify, not fix, these problems.

Third, the McCain health plan has a huge financing hole–between $1 and $2 trillion over the next decade. Only the most draconian Medicare and Medicaid cuts would make the plan work. But such cuts would be devastating for the very providers that are needed to make health reform work.

It is clear to us that Barack Obama’s health care reform plan is much better for the country, and much more likely to be successful, than John McCain’s.

3 Comments

Filed under Barack Obama, John McCain

3 responses to “Forbes is going with Obama on healthcare

  1. Obama’s plan does nothing to help someone who cannot afford insurance or health care. You just have a choice of plans.

  2. JANE SCHNEEMAN

    JUST SO WE ALL VOTE…………………

    Notice to All Employees

    As of November 5, 2008, if President Obama is officially elected into office, our company will instill a few new policies which are in keeping with his new, inspiring issues of change and fairness:

    1. All salespeople will be pooling their sales and bonuses into a common pool that will be divided equally between all of you. This will serve to give those of you who are under-achieving a fair shake.

    2. All low level workers will be pooling their wages, including overtime, into a common pool, dividing it equally amongst yourselves. This will help those who are too busy for overtime to reap the rewards from those who have more spare time and can work extra hours.

    3. All top management will now be referred to as the government. We will not participate in this pooling experience because the law doesn’t apply to us.

    4. The government will give eloquent speeches to all employees every week, encouraging its workers to continue to work hard for the good of all.

    5. The employees will be thrilled with these new policies because it’s
    good to spread the wealth. Those of you who have underachieved will finally get an opportunity; those of you who have worked hard and had success will feel more patriotic.

    6. The last few people who were hired should clean out their desks. Don’t feel bad, though, because President Obama will give you free healthcare, free handouts, free oil for heating your home, free foods stamps and he’ll let you stay in your home for as long as you want even if you can’t pay your mortgage.

    If you appeal directly to our democratic congress, you might even get a free flatscreen TV and a coupon for free haircuts (shouldn’t all Americans be entitled to nice looking hair?)!!!

    If for any reason you are not happy with the new policies take it up with yourself on November 4th while you are still free to do so.

  3. ashpolitics

    Jane: That’s super clever, really. It’s a joke, but it’s super clever. Thanks for sharing.

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