As most investors are aware, President Obama and the U.S. Congress are nearing agreement on a health care reform package that will provide universal health care coverage in the world's strongest economy and richest nation. The legislation's features will most likely include: 1) a public health care insurance plan to compete with private insurers -- in order to increase sector competition and to encourage private insurance companies to cut costs and improve service to the American public; 2) a series of cost cuts by insurers, hospitals, physicians, other service providers, and by the federal government to wring waste out the system and lower the per person cost of health care in the U.S. -- the nation with the highest per capita health care costs in the developed world; and 3) a tax increase, most likely on upper income groups or corporations, to help fund the new health care plan.
Moreover, while some may fear universal health care as 'creeping socialism,' nothing could be further from the truth. The United States' health care system will remain private sector-based, and know that the American culture that frames those solutions is ingrained in the American psyche, is strong, and it's very hard to alter.
To show you how ingrained the above is in the American psyche, Americans can't imagine life functioning in an economy with a government-led, bureaucratic, bungling system, one rife with chronic inefficiency, zany political swings from left to right and back, and forth etc. Americans could not imagine living in a country like that! How could a people function in such an environment? But Italy has been this way for decades, and yet in spite of all of the above, the Italian people live on!
Yours truly may be a little biased here, but can one argue that Italy's quality of life does not compare well with the U.S., at least in certain categories? (Trust me: don't start with cuisine, or history/culture, or vistas, or sea-side villages, or... well, you get the point.)
Underscoring, we are in the United States, so expect American-style solutions to health care, and to other problems.
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Financial Editor Joseph Lazzaro is based in New York.











Reader Comments (Page 1 of 1)
7-08-2009 @ 5:00PM
Iridium said...
The only solution is to pass major lawsuit reforms to cut malpractice insurance by a few hundred percent, eliminate all health insurance to force doctors and hospitals to charge only what people can afford, and change the status off all non-profit hospitals (we don't need 3 $250 million medical centers in every damn suburb).
Any solution that shifts the burden of payment away from the individual will only increase the cost of healthcare. Helthcare was far cheaper when people did not have health insurance.
Once the government mandates that everyone must have health isurance the average person will spend more than 80% of thier income on government mandated insurances (homeowner, auto, and health) and taxes. How are we supposed to live on what is left.
7-08-2009 @ 8:51PM
Gerrit said...
http://www.boston.com/bostonglobe/ideas/articles/2009/07/05/healthy_examples_plenty_of_countries_get_healthcare_right/?page=full
What on earth is the problem with Americans and more influence of the goverment? I read this 'creepign socialism' / 'communism' talk so often. It is nothing but putting fear in the minds of Americans. I think it would be a good thing to actually look at how other countries are handling things. You don't have to copy everything, but you can learn from it.
7-08-2009 @ 9:15PM
Camille said...
Part of the problem with the system is the fee-for-service nature of the American Health system as whole. Providers are compensated for more imaging, diagnostics, testing,etc. It is now clear from several studies that more healthcare is not necessarily better healthcare Aligning incentives with quality care and prevention instead of just more care is critical to containing costs
7-09-2009 @ 9:40AM
Mike said...
Yeah we know, the Italian people are still living under a government-run health care system. But then again they had 10% unemployment before this whole economic collapse happened last year.
Granted the left loves universal/single payer health care; this has been their holy grail for well over 70 years. Then again they can't see the long term picture, which is the incredible job loss that will occur if we have a "public option." When you're taking a sector out of the economy and transferring it over to the government, that essentially shoots any growth and innovation right between the eyes. Medical research would come to a screeching halt if this happened.
I've read Lazzaro in the past, and he's championed for public health care. Heck most people who write for NYtimes.com and CBS agree as well (especially when they always refer to UHC as the "ONLY solution.") Keep health care private, my great-great-great-...-great grandchildren cannot afford another government entitlement.
7-09-2009 @ 12:17PM
beanspants said...
My (large corporate employer-provided) heathcare has a $1200 deductible *per person in the family* before it covers anything.
Don't make no difference to me if i pay that directly to a doctor or to the gov't. It's the same cost either way.
8-17-2009 @ 3:04PM
Arlanjio said...
With due respect, but the "Italian people lives on" argument is awful. The reason? You can apply this to just about any group, even those who suffered and are suffering greatly.
Let's see, the Ukrainians live on, despite tens of millions of them were starved to death by Stalin. You can say the same about the Chinese, they even flourish, at least in terms of population. The Jews live on, despite being slaughtered in gas chambers. I can go on, but you've probably gotten the idea.
American's do not want to live like the Italian, that's the whole point. Sure, the Italians live on, but we want to live better.
BTW, there was a comment linked to a Boston Globe article praising the merit of the French health care system. The author had probably forgotten about this episode:
http://www.usatoday.com/weather/news/2003-09-25-france-heat_x.htm
and especially this paragraph in the article:
The new estimate comes a day after the French Parliament released a harshly worded report blaming the deaths on a complex health system, widespread failure among agencies and health services to coordinate efforts, and chronically insufficient care for the elderly.