Monday, December 14, 2009

Obamacare's ability to lower costs is a chimera and fraud

http://tinyurl.com/y8fuz28
The 'Cost Control' Bill of Goods How Peter Orszag and the White House sold a health-care illusion.
ObamaCare's core promise—better quality care for everyone at lower costs—is being exposed as an illusion as it degenerates into the raw exercise of political power. Naturally, the White House and its media booster club are working furiously to prop up this fiasco, especially on cost control. As Obama budget director Peter Orszag put it at a revealing media breakfast earlier this month, the Senate bill does everything the experts recommend to "get at the underlying drivers of health-care costs." While he admitted that "we don't know enough" to produce results right away, the key is to encourage "continuous improvement" through pilot programs and demonstration projects. Cost containment will actually take "years to decades," Mr. Orszag conceded....
****A salient illogicality is reliance on "Waste,Fraud & Abuse" as a source for funds. While it is possible to identify WF&A through statistical sampling and detailed audit, that methodology cannot be extended actually to root out such since the detailed audit's cost exceeds the savings. This is a truism characteristic of almost all bureaucratic programs ( e.g. the IRS, government procurement, entitlement programs and subsidies of all kinds ): they have W,F&A but are inextricable and irremediable features of large, governmental systems pretty much as an overhead cost of doing business. This is not to say that loopholes and specific instances of W,F&A should not be identified and rooted out but it is hardly a reliable source of funds to finance other things.Anyone who says it is is either a fool or thinks we are.****

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