Thomas Lee Abshier, ND
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Naturopathic Physician
Political Philosopher & Author
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Consultant, Speaker, Author
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(503) 255-9500
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The Christian Constitutional Republic
One Nation Under God
Government of, by, and for the People
Liberty and Justice for All
by: Thomas Lee Abshier, ND
Government Run Healthcare Cost
& The Welfare State
7/17/2009
From: John
Date: July 17, 2009 11:35:06 AM PDT
To: Thomas Lee Abshier, ND
Subject: Cost of Federal Gov't Run Health Care = $20 trillion in 10 years
Here are a few factoids.
1. We already have government run health care for the poor and the elderly, Medicare and Medicaid. What can we learn from their costs?
2. Q: How much does Medicaid cost? A: FY 2009 = $290 billion
3. Q: How much does Medicare cost? A: FY 2009 = $450 billion, but payroll deductions pay for part so net is about $210 billion
Total for Medicare + Medicaid in 2009 = $500 billion
4. Q: How many people does Medicare cover? A: 35 million elderly
5. Q: How many people does Medicaid cover? A: 40 million poor
Total people covered by Medicare and Medicaid = 75 million
6. Q: What is the current population of the U.S.? A: 307 million legal residents and approx. 12 million illegal residents, so approx. 320 million.
Government run healthcare costs $500 billion per year and covers 23.4% of the population. So by my simple calculation, a government run program that covers all residents should cost about 4 times as much or $2 trillion per year or $20 trillion over ten years, not $1 trillion in 10 years.
Another way to look at the costs is as follows. Medicare is probably high cost care, while Medicaid low cost care. Therefore perhaps looking at the per capita cost of Medicaid would give us an idea of how "cost effective" government health care is:
1. Medicaid costs $290 billion divided by 40 million people or about $7,250 per person.
2. Cost per family assuming an average family has 2 adults and 2 children = 4 x $7,250 = a whopping $30,000 per family.
3. Compare that to the average cost of private insurance for a family of 4 = $6,000 to $12,000 per year.
That's about right. Government run programs always cost 10 times as much and revenues are always about 10 times lower than projected.
Payroll taxes will need to jump from 15% of wages and salaries to probably 30%. Add income taxes, sales taxes, property taxes, etc. and you will be paying 60% to 70% or more of your income in taxes.
If 100% taxation is slavery then 60% is pretty darn close.
Healthcare is NOT a "fundamental right" nor a "national responsibility", neither is a job, nor a house.
My fundamental rights are LIFE, LIBERTY, and TO KEEP THE FRUITS OF MY LABOR to do as I see fit.
Best,
John
From: Madeline
Sent: Monday, July 20, 2009 8:30 AM
To: John
Subject: CBO Analysis
Hi All,
There is absolutely NO PRECEDENT for government providing efficient, low cost, high quality anything. Obamacare is not about cost, this is all about curtailing individual liberty, expanding government, and controlling lives.
But since we were talking about cost and I can't help myself, here is the CBO analysis. It is only 17 pages, but the info you need is on page 4 and 5.
http://www.cbo.gov/ftpdocs/104xx/doc10464/hr3200.pdf
The cost "savings" are coming from "fee for service" cuts of as much as 21% across the board.
So that means, for example, a simple plain vanilla "doctor's visit" which is currently reimbursed at $20, will be reduced to $15 to $16. Since obviously private practice doctors can't make a living at that, they offset the fact that they are losing money seeing Medicare/Medicaid patients by seeing regular patients. Most private practice G.P.s are not living high off the hog, in case you haven't noticed. So under Obamacare their entire practice is $16 patients or maybe $300 to $400 per day for a very long day. But you will need some sort of admin help to fill out all the government paperwork who costs probably half of that plus rent, etc. Say bye-bye to private practice and bye bye to high medical salaries. But it currently costs about $250K to become a doctor. Who is going to want to do that, which means the best and the brightest no longer choose medicine as a career.
But the government argument is by taking "money" out of medicine they will attract only those individuals that want to work for the common good.
Then as I said in my earlier email, all those "risky" things you like to do as an individual are going to go bye bye. I had a long list but in addition to flying an airplane and owning guns. Do you think individuals will be allowed to own horses, nope. Too risky and not necessary. Think the elderly will be allowed knee replacement surgery or hip replacement surgery, nope, think again. Think 65+ year olds will be allowed cancer treatment, think again.
But once again, we are swatting at flies whilst the elephants are running loose.
Say bye bye to individual liberty. Say hello to expanding government, and controlling lives.
Best,
Madeline
