Congressional Democrats and Obama Meet on Healthcare

Obama and Senate Democrats met to talk over their health care agenda strategy. In The New York Times article (June 2) by Stolberg and Pear, we learn what the current thought are. The pressure is on to get things done this year as Chris Roomer (Chair of the White House Council of Economic Advisors) reports that we will have a mess on our hands if we don’t move. Where has she been for the last decade? That’s news? Healthcare costs, by government estimates, will grow to 28% of our GDP by 2030 from the current 18%.

The assurances by insurance companies, hospitals, doctors and pharmacies to trim almost two trillion dollars over the next decade are hitting snags. These principals have withdrawn from saying they really promised to do this, or can do it. In fact, it is highly unlikely to be effective. Republicans don’t believe it will save and money and that it is all a smoke screen. How can doctors eliminate “unnecessary tests” in the face of no change in medical malpractice? The reason for such testing is for self protection by the doctor. The AMA said they will try to get doctors to reduce CT and MRI scans, lower back pain treatments (injection therapy), cut the number of C-Sections and angioplasties. Ok, I just don’t believe it will happen because patient’s want treated for back pain, chest pain and so on.

Insurance companies will introduce a standard health form and make communication between health care parties easier. This makes sense. Let’s do it. Others suggest paying more for home health care than for nursing home care. This will need some thinking. My mother is in a nursing home because I can’t provide the care she needs. She needs nursing care, not babysitting. Is this what Congress and Obama are going to interfere with?

Obama and the Democrats point out from their studies that it is necessary to stop growth in health care spending to avoid horrendous damage from future deficits. They also suggest that family income will increase over the next decade or two if spending is controlled. These are good things. Can we do it?

Obama, and Congressional Democrats, are open to taxing health care benefits. He bashed McCain for this during the campaign. The health care tax exclusion will go by the wayside now to get at the 250 to 300 billion in tax revenues to pay for this health plan. Such benefits would be treated like wages and taxed. Obama also want to cut Medicare payments and exclude some tax write offs for high income earners. Again, it is not enough to fund his plan and brings in only some 600 plus billion. Not enough. In addition, many in Congress don’t go along with the cuts.

The debate continues and will start to get hotter as we get to the middle of June when Congress takes it up in earnest on their agenda. Stay tuned.