Thursday, July 30, 2009

Best Damn Editorial in a long time.

Those of you that faithfully follow this blog know a few things, number one, I am not a fan of the DNP degree mandate for several workforce supply issues and reasons that I have expanded on in the past. Secondly, I have been saying for months, that trying to simply expand coverage, and NOT implement or attempt to reign in the substantial increases in healthcare spending that occur annually, will NOT WORK. It's that simple.

YOU CANNOT ESCAPE THE RULE OF 6.9%. In a year, FY2008, which saw the worst economic collapse in five decades, and saw the year finish with NEGATIVE GDP growth. Yep,
-5.8%, healthcare spending still increased by 6.9%. Businesses which saw record losses, and had to cut staff, production, and benefits, saw health premiums increase by 5% on average. The current iterations put forth by the house, and the HELP version from the Senate DO NOT DO THIS. SO, we will simply be spending ourselves further and further into oblivion.

Right now, by 2050, Medicare and Medicaid spending alone will consume almost all federal taxes levied, and by 2080, Medicare will consume MORE than all federal taxes collected. This year, 2009, the predicted increase in healthcare spending will be close to 7.4%, and for every year now for decades, healthcare spending increases have outpaced GDP growth. It cannot continue.

This idea, of taxing healthcare, may help. It is one of the few ideas coming out of congress that actually has merit, but it is politically unpopular, cause most americans don't really understand macroeconomics, or the real, REAL need for restraint in healthcare spending.

If the economy could stay elastic and continually expand, we wouldn't even have any of this conversation, but it cannot. In fact, right now, it is still contracting, although the latest economic indicators show that this had slowed substantially, healthcare does not respond like a typical commodities market. Cause it's not. Right now, as most of you know, we have a mixed payor system. Unfortunately, this is the worst of both worlds. Anyway, please read:


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