Health Care Reform to Make You Ill

A loyal reader asked me to comment on the dramatic rise in health-care premiums highlighted in an article, Soaring Health Premium Just Makes Me Feel Sick, from the Irish Independent. The author, Martina Devlin, writes of an individual in Ireland who just received her new health-care premium. Devlin offers:

I SERIOUSLY debated cancelling my private health insurance recently. When the renewal notice arrived in the post I did a double-take at the size of the bill, cross-checked the increase — which was almost 20pc — and gulped.

Value for money it wasn’t. In fact, it struck me as a hefty charge to cover what I regarded as an insubstantial risk. You can never discount the danger, but I’m still reasonably young and healthy (touch wood).

Reviewing the article immediately reminded me of a conversation that I had with my wife’s cousin, a doctor in a community hospital. I spoke with him over the holidays and asked him his take on the prospects for health care reform and legislation here in our country.

His take was as follows:

1. Insurance companies were bought off by the administration to support legislation without a public option.

2. Pharmaceutical companies were bought off by the administration.

3. 15 million uninsured (5 % of the American population) will clearly benefit.

4.  Those with pre-existing conditions will benefit.

5. The elderly will suffer as health care is rationed.

6. Doctors and others in the health field will pay in terms of lower compensation (bending the cost curve).

7. The American Medical Association (AMA), which came out in support of Obamacare, only represents approximately 17% of the physicians in this country.

8. Who really pays for the costs associated with the health reform plan? Largely, middle income American taxpayers who will be forced to pay higher premiums as highlighted in Ms. Devlin’s article.

Ultimately, the reform as drafted is a massive redistribution program.

In summary, he said that for this legislation to work it must have a public option to force the insurance companies to lower costs. Without that, it does not work. But to get the insurance companies to call off their lobby, the administration has to accede to legislation without the public option.

I am much more comfortable and familiar with Wall Street than I am the world of health care. That said, my wife’s cousin is a great guy and extremely trustworthy. I’ll tell you what. I felt ill about the proposed health care reform after speaking with him. I am not surprised that the American populace at large is also overwhelmingly opposed to this so-called reform.

All opinions, especially from those in the health care industry, encouraged and appreciated.

About Larry Doyle 522 Articles

Larry Doyle embarked on his Wall Street career in 1983 as a mortgage-backed securities trader for The First Boston Corporation. He was involved in the growth and development of the secondary mortgage market from its near infancy.

After close to 7 years at First Boston, Larry joined Bear Stearns in early 1990 as a mortgage trader. In 1993, Larry was named a Senior Managing Director at the firm. He left Bear to join Union Bank of Switzerland in late 1996 as Head of Mortgage Trading.

In 1998, after 15 years of trading and precipitated by Swiss Bank’s takeover of UBS, Larry moved from trading to sales as a senior salesperson at Bank of America. His move into sales led him to the role as National Sales Manager for Securitized Products at JP Morgan Chase in 2000. He was integrally involved in developing the department, hiring 40 salespeople, and generating $300 million in sales revenue. He left JP Morgan in 2006.

Throughout his career, Larry eagerly engaged clients and colleagues. He has mentored dozens of junior colleagues, recruited at a number of colleges and universities, and interviewed hundreds. He has also had extensive public speaking experience. Additionally, Larry served as Chair of the Mortgage Trading Committee for the Public Securities Association (PSA) in the mid-90s.

Larry graduated Cum Laude, Phi Beta Kappa in 1983 from the College of the Holy Cross.

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1 Comment on Health Care Reform to Make You Ill

  1. The MIDDLE CLASS should NOT be paying for this – more money needs to STAY in OUR paychecks so we can save, invest or spend to help bring the economy back. If these political weaklings tax our employee based healthcare to pay for this bill – that means a tax on the Middle Class and I will be furious.

    Allegations of price-fixing, bid-rigging, exclusive sales contracts, local price cutting to freeze out competitors, and the dividing up of markets need to be fully explored through subpoenas and depositions (a law suit by all 50 States and joined by the Feds) so we can get rid of our dysfunctional corporate health care system that’s choking the economy to death.

    Federal workers and retirees can select plans at a cost range from $100 dollars a month for the cheapest individual coverage to $500 dollars for the most expensive family plan. That plan should be available to EVERYONE.

    I’m voting “MY” pocket book – I want lower premiums and less money taken out of my paycheck – if they want to help spur on the economy they will make sure this happens for the majority.

    The bottom line is that 90% of the wealth concentrated in 1% of the population is no way to run a country, but a heck of a way to establish a royalty ruling class. Yacht sales can not sustain 350 million people.

    I’m for the public option, competition and a level playing field or break up the big insurers like we did AT&T.

    A slavish focus on profit margin might be good for the individual or a business, but it is one helluva lousy way to “govern” a Country. The GOP being a wholly owned subsidiary of Corporate America has a hard time with that concept.

    Paul Burke
    Author-Journey Home

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