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Healthcare Reform Is a Lump of Coal

Sunday, December 27, 2009 – by Ron Paul

Dr. Ron Paul

Last week on Christmas Eve, after many backroom deals were made, the Senate passed the healthcare reform bill with a strictly partisan vote. I was pleased that my colleagues in the GOP are on the right side of this bill. Although this vote was a major step in healthcare reform becoming reality, they still have to reconcile the Senate bill with the House-passed version in conference committee. This could prove even more difficult and costly than the Senate vote.

There was a little bit of controversy surrounding one particular Senator who was initially against the bill, but then, coincidentally, a large amount of Medicare funding specifically for his state was tucked inside and he ended up voting for it. One wonders how much more of that will have to go on to achieve final passage.

But this is how politicians in Washington deal with problems: they throw your money at them. Healthcare reform is no different. The Senate version of the bill, at last count, will cost $871 billion. The House version tops $1 trillion. But they tell us this is for the health of Americans, and how dare we count the cost?

Such is the arrogance of politicians. There seems to be no end to the problems they feel capable and duty-bound to solve through legislative proclamation and plenty of your money. To hear them talk, one might think that a few words spoken on Capitol Hill would make problems just disappear. All it takes it good intentions.

But no good can come from 2400 pages of Washington's good intentions.

I have observed quite the opposite throughout my political career in the House of Representatives, and fear that with this immense legislation, our healthcare problems are only just beginning. Over the last few decades, I have seen healthcare subjected to more and more creeping red tape that only creates bottlenecks and increases costs as new bureaucratic hurdles are put in place.

Politicians cannot solve the problems created by ever-increasing intervention by exponentially increasing their intervention. Similarly, they cannot improve the quality of healthcare and expand access to it for all Americans simply by legislative decree. If only it were that simple! The reality is the free market, when allowed to function, naturally increases access and drives prices down through competition. The free market keeps service providers accountable by allowing people to take their business elsewhere.

This government intervention will eventually create a near monopoly of providers in health insurance as smaller companies are squeezed out and innovation comes to a grinding halt due to formidable barriers to entry. The government will determine prices and levels of service that will apply to everyone, regardless of want or individual circumstances. The true insurance model of healthcare cost management, meaning major medical coverage only, will basically become illegal. Opting out of the system will incur heavy tax penalties.

Expanding government reach so deeply into this very sensitive area of our personal lives and such a major part of our economy means more opportunities for waste, fraud and abuse of the system. One need only remember the recent bailouts for an example of how government handles systemic waste, fraud and abuse.

So while the Senate patted itself on the back last week for delivering a Christmas gift to Americans, time will prove it was instead a great big lump of coal.




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Effective April 25, 2012, the Daily Bell will discontinue allowing feedback comments. We have left in place the large body of responses posted in the past, as we appreciate the valuable contributions made by some of our readers.
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  Posted by Daniel F. Bonner on 12/30/09 05:16 PM

The old Soviet five-year plan comes to mind. But picture the Federal Register tonnage this will generate. Like Lilliputian strands the regs will bind us back more and more and leave us with badly damaged liberty. Keep up the good fight.

Reply from The Daily Bell

How much more damaged can liberty become?

  Posted by Marten on 12/28/09 11:03 PM

Healthcare Reform, what a scam... Government is not the Solution to our problem. Governement is the problem...period, but tough Times breed a bigger (Gov.) so we get what we have, regulations on top of Regulations.....

Reply from The Daily Bell

Good points, thanks for writing.

  Posted by Marten on 12/28/09 10:47 PM

In my view, Ron Paul represents some sort of Consciousness Shifting Event that will, unfortunately, never occur...

Reply from The Daily Bell

Well, we believe it IS occurring...

  Posted by Bonnie Donaldson on 12/28/09 09:57 PM

As a R.N. for 40 years, the past 15 years in the ER, I can agree with the feedback about the AMA. Most of the public is so overawed by the medical system, and so hesitant to question the actual need or rationale for most of the medical services available, that they make easy pickings.

Any honest M.D. will have to admit that most acute illnesses resolve on their own, without any intervention. Consumers increasingly demand information, research, and performance ratings on products they might purchase. Not so with medical services and products.

Most people blindly accept whatever is prescribed, never questioning the actual need or possible results. The doctor is still a god for most people. Add to that the public's desire to take away every uncomfortable sensation with a drug and it's no wonder the system is a profit-making dream. Try to navigate the medical system, especially as a lay person, and the dream becomes a nightmare.

There is little point in blaming the Dems for the most recent attempt at legislation. The Republicans managed to ram through their own Medicare Pharma bill on their watch. Seems to me that they are all in the same bed, self-interest being paramount for nearly everyone involved, as usual. Human nature, again...

Thanks for your work!

Reply from The Daily Bell

You are probably right. The Republican bill was bad and so is this one.

  Posted by Bowman W. Davis on 12/28/09 05:05 PM

Ron Paul is the only "TRUE" voice advocating individual liberty and a return to Constitutional governance. It is true other republicans voted as he did {against the health care bill} but except for a very few the votes cast against the bill were attempts to assure re-election, and not because they disagreed with remaking America into a statist nation.

When Mr. Paul speaks of restoring the Constitution to government, there is no republican chorus in the house.
When Mr. Paul stands up for America and demands the fed be held accountable for thier corruption, he stands alone in the republican house.

However, there are millions of "Americans" who do stand with Mr. Paul, and more are standing up every day.

Reply from The Daily Bell

He is heading a movement that is growing ...

  Posted by Kaydell Bowles on 12/28/09 02:24 PM

If one looks at the amount paid just this week end for sports and movies entertainments it is in the hundred of millions dollars. At the same time, there are those who feel it is a right to have health care. Something tells me that priorities for one earnings are misplaced. The mind set is I want someone to pay my health care for the decisions I have made that I can spend on my wants and not needs. Going down this road will desroy one of the best health care systems in the world. Please do not lecture me about the good health care in the European system. I have lived there for over 4 years and I have another opinon of the health care one receives as well as the long waits.

Reply from The Daily Bell

Thanks for the feedback.

  Posted by Bob Brooks on 12/28/09 02:13 PM

I agree with Ron Paul except for one point. There is an assumption that if government were not involved, we would have a free market in health care. This is not true.

The American Medical Association and its various partners has a virtual monopoly on health care in the United States and has used the government to enforce this monopoly. It has used this monopoly power over many decades to keep the market for health care from being anything but free.

How can one have competition, for example, if one doesn't know the price of service prior to buying? Yet, it is virtually impossible to find out this information prior to actually being billed for the service. This is bad enough for doctor visits but is even worse for hospitals or emergency rooms, since one typically doesn't have the time to choose when these services are needed. Without having price transparency, one cannot have a free market in health services.

Health insurance just mucks up the entire matter because one really doesn't know whether one's service is going to be covered or not these days. They have also made it so complex that it is virtually impossible to understand.

A role for government would be to break the AMA's monopoly and to force doctors and hospitals to reveal their pricing structures in a way that they can be compared and understood by the public. If one also had performance statistics on the doctors and hospitals so that one could know the quality one would get for the money one would spend, then we would have something much closer to a free market for health care.

Reply from The Daily Bell

You are correct that the AMA is another bad idea.

  Posted by Dick Cone on 12/28/09 01:04 PM

"To hear them talk, one might think that a few words spoken on Capitol Hill would make problems just disappear."

Ron Paul puts his finger on the problem here. It's not only fiat money that is created, it's also fiat word. Just speak and it is so. That is at the core of Democrat strategy now as in the past: create PERCEPTION as a replacement for truth. Proclaim it as fiat word through an approving media.

I noticed this first in the early 90s when for the first time I had cable TV and time to watch it. So many times I watched journalists say "perception is reality" and nod approvingly at each other as though they have a special knowledge only insiders possesses.

It dawned on me that they really believe this and miss entirely that perception is not truth. No matter. Perception wins in Washington but no party has focused on this. It should be the Republican or Libertarian, but it isn't for truth requires a covenantal world view and both are focused on worthy projects but miss the central point.

False Covenant: Strategies use coercion, manipulation or magic. Always. Creating perception as a strategy is manipulation of the truth.

Reply from The Daily Bell

Fiat money is a kind of dreamtime, as we have pointed out.