Healthcare – Numbers Matter

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Republican Politicians and Trump are masters at using words to deceive the actual implications of policy actions. No so much with numbers. The house healthcare bill is a good example. In an earlier post I attempted to put in context the pittance of money they were throwing at the problem to justify taking away healthcare for millions of Americans that depend on the ACA – $8 Billion over five years for “High Risk Pools.”

I learned many years ago, while working in the Office of Secretary of Defense for Systems Analysis, that quantifying consequences is critical for laying bare the implications of misleading / self-serving political statements.

Beware of what the Senate Republicans are saying and trying to get through. The Republicans and Trump are attempting to drastically cut Medicaid and make other changes that will take away healthcare for millions of Americans and increase costs for the rest of us. All of this to justify giving a tax break to wealthy people.

Look at the facts and consequences:

  • Roughly 70 million Americans depend on Medicaid.
  • Medicaid’s costs per beneficiary are substantially lower than if covered by private insurance. Specifically, a Kaiser Family Foundation issue brief  sited research results that total healthcare estimated spending would increase nearly 26 percent, from $5,671 per person per year to $7,126, if a typical low-income Medicaid adult were covered by private health insurance for a full year. In addition, total health care spending would increase 37 percent, from $909 per child per year to $1,247, if a low-income Medicaid or CHIP-enrolled child were covered instead by private health insurance for a full year.
  • The Center For Budget And Policy Priorities, in Frequently Asked Questions About Medicaid, reported that “Medicaid’s costs per beneficiary are substantially lower than for private insurance and have been growing more slowly than per-beneficiary costs under private employer coverage.”

Medicaid Spending per Beneficiary Has Grown More Slowly Than Private Insurance

  • We are waiting to hear from the CBO on the latest assessment of the Senate bill, but it is almost certain to report that (1) 20 plus million people will lose healthcare coverage provided through Medicaid and other ACA provisions, (2) The insurance industry will get a pass on providing coverage for people with pre-exsiting conditions, (3) the state insurance markets will fail, (4) insurance rates will increase for everyone except perhaps for young adults, and (5) we will continue to have the most inefficient healthcare system in the western world — one that consumes over 20 percent of our 10 trillion dollar economy.

These are the facts but they will not be in the Republican or Presidential statements and press releases.