Neff Zone Column -- June 27, 2009

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Print Edition: June 27, 2009

HEALTH CARE A HOT TOPIC

Health care is one of the hottest topics of the summer and that’s a good thing.

Right now there’s a lot of "us versus them" rhetoric flying about, but for the first time in my memory there’s at least a sense that people from all across the political spectrum realize that the health system is broken and needs fixing.

Oddly enough, one of the "new players in the game" this time around is the realization that providing reasonably priced health care insurance is more than a moral or philosophical question. Simply put, providing health care insurance for each American is a straight business decision. Every country with which we compete in the global economy provides universal health care for its workers and citizens. In order to play in the globalization game the United States must do the same or it will inevitably finish in last place. American businesses and companies cannot compete on a global scale under this country’s current health care model – end of story.

So, step one is to realize that the only pro-business stance is to back some sort of universal health care insurance. We’re doing that right now with ideas coming from the left and right. These ideas seem at odds most of the time but the point is that every idea put forth broadens the discussion. Consider that compared to other (competing) nations the United States spends as much as 16 times more on per capita health care and you can see the potential for finding a solution. There’s a lot of room between the numbers 1 and 16. Barack, Newt and the rest of the major players ought to be able to figure out something that works; hey guys, how about meeting at 8?

Of course, step two is the elephant in the room, which is how to pay for universal health care insurance. The figures tossed around keep using the "trillions" word, but here’s a kicker. Some experts think that could eventually be a savings, not an expenditure. A study by the Commonwealth Fund, a foundation that supports health care practice and policy research, says to think of health care reform in the same way as an Energy Star appliance. It costs more to replace your old refrigerator with an energy efficient one, but you save big time in the long run. Similarly, the study estimates that a $600 billion investment in health care reform right now will save us $3 trillion by 2020.

When it comes to cost, here’s what I keep coming back to. Right now (as of August 2009) $8300 health care dollars are spent per year on behalf of every single person in the United States. That’s $33,200 for a family of four. Right here, right now in Cadillac, Michigan do you feel like your family is getting $33 grand worth of health care benefits? And if we’re spending all this money, why are 47 million Americans still without health care insurance?

According to a report this week by the Kaiser Family Foundation, the average yearly premium for a health care insurance policy just like the one members of Congress and the Senate have for themselves is $4,802 for an individual and $12,937 for a family.

Wouldn’t it be cheaper to just buy everyone a private sector insurance policy? At the going rate you’d save $20,263 per family. I know this is simplistic, but you get my drift. Surely, since we’re already spending $33,200 per family, there must be a way to repurpose that money in a more efficient way.

Finally, the argument has been made that what’s really needed is to get government completely out of the health care discussion and leave it all to market forces. The logic, mainly being proffered by far right radio talk show hosts, is that health care is costs so much because people with insurance don’t pay attention to how much is being spent on their behalf. If no one had health care insurance, it’s postulated, then individuals would shop around for the lowest prices and providers (like hospitals and doctors) would lower their prices and fight each other for customers.

I’m not going to debate that point because luckily we here in Michigan have Flint. In Flint, virtually all the union jobs have left which means the majority of the population no longer has health insurance. With seven hospitals, including massive health provider systems aligned with Genysys and McLaren, Flint certainly has all the ingredients for a huge price war.

I’ve often said in this column that for the United States, Flint is the "canary in the coal mine." So, if the radio hosts are right, Flint should very soon have the lowest health care rates in the entire country. It will be interesting to watch what happens.

Jim Neff is a local columnist. Comments to neffzone@gmail.com. Read Neff Zone columns online at www.neffzone.com/cadillacnews.