Dear Editor:
This week healthcare, representing one fifth of the American economy, will start being debated by Congress. Although 85 per cent of Americans have healthcare insurance and a vast majority are satisfied with their coverage, our Congressmen are poised to enact an expensive big government overhaul.
One item receiving attention is the “state opt out” clause, which exists in Medicaid. How many states opt out? Zero. Why? Who wants to pay into a system and receive no benefits, even if paltry? Cut $500 billion from Medicaid? Bush tried for $5 billion and got zero.
Other gimmicks abound. We will start paying next year but begin receiving benefits in four years, fully phasing in 10 years later. Taking the first full 10 years instead of this Hoboken style smoke and mirrors causes costs to jump to $2.5 trillion! If you’re 20-40 years old, congratulations, you are in the healthiest demographic. Unfortunately you’ll have to pay full freight although a more cost effective approach is a catastrophic health care plan.
My father succumbed to Alzheimer’s several years ago after two years in a nursing home. He was lucky that he had a long term care policy (if you can afford it please get one). The ward was half empty. Why? The home refused to take in new patients on Medicaid. It was more profitable to leave rooms empty. Why? Medicaid pays 70 cents on the dollar. That makes it “cost effective”.
This legislation will harm hospitals and medical providers financially. What can we do to improve and expand healthcare insurance? Allow everyone to put up to $7,500 per year ($15,000 for a family) into a pre-tax health savings account that can be used towards medical expenses or insurance. I agree with Dr. Bassam Haddad of HUMC that the high cost of malpractice insurance must be addressed though tort reform. Did you ever notice how few choices you have in NJ for car insurance? I’m lucky that I work in the securities field and have a cost effective health plan in my industry. Too bad I live in NJ. Unlike most states it’s unavailable here. Why can’t I make my own decision on what type of insurance I’m comfortable with? If we could buy insurance from any company across America we would have many more choices available, lowering our costs.
In Hoboken, we will soon come face to face with one of the poorest decisions ever made by our politicians – HUMC. Our hospital needs $10.7million by December 1st or they can’t pay their bills. As taxpayers we will be on the hook for $4-5 million per year when HUMC fails. Even more if taxpayer dollars are needed to keep it open. Hopefully, someday taxpayers in Hoboken and the USA will realize that there is no free lunch, taxpayer dollars are precious and should not be squandered by elected officials. Have you gotten your Hoboken H1N1 flu shot yet? Normally it’s done by private industry, this time it’s government controlled.
Scott Siegel