By Carol Woehrer
Congressional Budget Committee Chairman Paul Ryan (R – Wis) grinned as he announced that giving future seniors vouchers to buy private health insurance would bring costs down by encouraging competition. Ryan wants you to believe the sweeping assumption that competition would bring health care costs down. It is indeed a false one.
For consumer goods and services like autos, appliances, furniture, restaurant meals, roofing, and yard service, where a consumer can compare alternatives, yes, competition is a good idea and does overall result in higher quality goods and services at lower costs. Health care, however is an essential requirement for people’s well being in which choices are heavily influenced by medical professionals and insurers often under conditions when choice is not an option.
Both worldwide costs and those within the U.S. demonstrate that private health insurance is far more costly than government provided insurance. The U.S. is the only country that allows private for profit insurance as a means to provide health care to its population, and its health care costs are on average double those in the rest of the world that mainly provide health care coverage through their governments. The U.S. itself has three health care systems: direct government provision of health care – the health care for Veterans; a mainly single payer insurance system – Medicare; and private health insurance. The system which is least costly and rated as the highest in quality is the Veterans system. Traditional Medicare, a single payer insurance system, costs 14% less than Medicare Advantage that pays private insurance companies to provide Medicare benefits.
The idea that having the government pay for a service harms the economy is based on ideology rather than reality. The total amount of the economy dedicated to health care determines how much health care affects the economy rather than the mechanism for paying for it. The higher cost we currently pay for health care in the U.S. isn’t available for education, research and development, and good transportation systems, all of which contribute to a vibrant economy nor for other consumer goods and services. Government provided insurance greatly reduces administrative costs; increases negotiation for lower cost drugs, supplies, and medical services; and provides opportunities to develop care models that improve quality and reduce costs.
The Medicare Rights Center states that the GOP plan would substantially increase the cost of health care for the nation’s future seniors as well as weaken the program for current recipients. It would deprive tens of millions of Americans of health care coverage, all to provide tax advantages for wealthy Americans. This would increase the disparity between hard working American families and the wealthy now already at a record historical and global high.
For additional details on how the GOP Budget affects Medicare and Medicaid costs and recipients, listen to Democracy Now’s excellent interview of Joe Baker, president of the Medicare Rights Center, and Elizabeth Benjamin of the Community Service Society of New York, recently awarded the Families USA Consumer Health Advocate of the Year Award. It is the first segment of the program, about 12 minutes long.
The Grand Consensus: Overview
The Grand Consensus: Minnesota’s Progressive Legacy – Overview
By Iric Nathanson
“Minnesota nurtures an extraordinary society,” Time told its readers in 1973.
On August 13 of that year, the weekly news magazine showered this state with accolades in a glowing profile, “Minnesota: The State that Works.” As a lead-in to the profile, Time featured a flannel-clad Governor Wendell Anderson on its cover.
“If the American good life has anywhere survived in some intelligent equilibrium, it may be Minnesota,” the magazine noted. “It is a state where a residual American secret still seems to operate. Some of the nation’s more agreeable qualities are evident there: courtesy and fairness, a capacity for innovation, hard work, intellectual adventure, and responsibility.
“Politics is almost unnaturally clean—no patronage, virtually no corruption. The citizens are well-educated and remarkably civil.”
Time went on to comment about a major legislative action two years earlier. In 1971, Anderson and the Minnesota Legislature had agreed to a package of state tax hikes that would boost revenues by more than a half-billion dollars. Those new revenues would be used to increase state spending for public education. At the same time, the 1971 measure would lessen the burden of local property taxes, then the major source of support for local school districts.
“It was a major piece of social legislation,” Time observed. “… [W]ithin a six-year period it will virtually equalize the per-pupil spending for education throughout the state and thus go along way towards equalizing education in the cities, suburbs, and rural areas.” Continue reading →
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