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Explore the challenges in healthcare reform, from heated rhetoric to complex issues and diverse political philosophies. Understand why reform is a daunting task despite the pressing need for change. Analyze the history of healthcare reform in the U.S. and the current landscape post-Obamacare, considering various proposed solutions and the future of the healthcare system.
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Why Is Healthcare Reform So Difficult? David Davenport Crystal Serenity February, 2011
Heated Rhetoric, Complex Issues 51 Million Uninsured? • About 11 million are noncitizens • About 16 million adults eligible but not insured • About 7 million kids eligible but not insured • Another 9 million have incomes over $66k So real number closer to 16 million
Heated Rhetoric, Complex Issues WHO says US life expectancy #42 in world? --Remove homicides --Remove traffic fatalities We’re Number One
2008 John F. Cogan Hoover Institution 1/10/09
But Costs Difficult to Manage • #1 cost driver is technology and improved healthcare • There is also waste, perhaps as high as 20-25% but difficult to squeeze out
Waste To Be Eliminated • 3rd party payor problems (moral hazard) • $5 of every $6 paid by “someone else” • Regulatory cost • Malpractice, lawsuits • Tax policy drives employer plans
The Equality vs. Liberty Narratives From the French Revolution: Liberte, egalite et fraternite From the American Revolution: life, liberty and the pursuit of happiness
The Liberty Narrative • Equality of opportunity • Limited role of government • Individual freedom and choice
The Equality Narrative • Equality of outcomes • Government oversight • Limits on free markets and individual freedom to institutionalize equality
What Would Happen In “Ordinary” Times? • American people don’t generally support major overhauls • With 15% uninsured and 80% + happy with their healthcare, felt need for overhaul isn’t widespread • So work on individual pieces of problem
But These Were Not “Ordinary” Times • President Obama wanted to spend his political capital on this • Both Congress and Senate were in his party • Tough economic times create greater support for more safety net
Obamacare: Will It Survive? • Repeal highly unlikely • But Congress may alter it in other ways • Constitutional challenges are real • Public is ambivalent
For individuals National market, portability Preexisting conditions Tax relief and subsidies for uninsured Repeal and Replace
Individual Fixes for System • National market • Information/accountability for choices • Change tax incentives • Reform medical malpractice laws