NYT: Obama’s Healthcare Financing Goals Are Lofty

[Business of Healthcare, Corporate Issues, Election 2008, Managed Care] — Posted by Michael Douglas, MD, MBA on 23 July 2008 at 1:48 PM

There’s no easy money.  That’s the mantra echoed in an interesting piece today in the NYT.  Critics of Barack Obama’s healthcare financing plan are beginning to question the senator’s rationale for major policy points behind his pledge to “bring down premiums by $2,500 for the typical family”.  They also contend that the presidential candidate has no essential timeline with which to carry out his audacious initiatives.  Potential roadblocks:

  • How does one begin to consider cost of healthcare savings if upfront costs for policy changes are daunting?  For example, take his pledge to spend $50 billion over five years to speed the computerization of health records,  or what about $6 billion a year on tax credits to small businesses that provide coverage to workers?
  • When could one actually begin to realize the $2500 savings? Obama’s camp says by the end of the first term, but that’s not entirely a sure thing.
  • Getting around the fact that Obama’s projecting that a robust overhaul consisting of 15 broad initiatives would generate savings of only 6 percent after 10 years (according to the Commonwealth Fund).

The heatlhcare debate just got a little more interesting. | LINK

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