by Sheldon Richman

If the politicians who are bent on redesigning the medical and medical-insurance industries really wanted only to curb rising prices and help the uninsured get coverage, they would have zeroed in on the previous government interventions that created those problems. Instead, they are pushing grand schemes to turn our medical decision-making over to bureaucrats. That indicates that the so-called reform campaign is about power.

Medical care is too expensive. Prices for services rise faster than other prices, and there’s reason to believe much of the money is wasted. Expensive medical care equates to expensive insurance, which prices some people out of the market.

This has been called a failure of the free market, but that can’t be: There is no free market. I defy the advocates of government control to name one aspect of medicine or insurance that government doesn’t dominate.

The anti-market system politicians have put in place — as pleasing as it is for the insurance and pharmaceutical industries and organized medicine — harms the public. Yet it would be easy for them to remove the harmful interventions.

For example, they could end the adverse tax treatment of people who buy their own insurance. If your employer buys insurance for you, it’s paid for with pretax dollars. If you buy your own, you pay with after-tax dollars. That’s a hefty penalty. But the price of avoiding that penalty is high: You must cede control over thousands of dollars in cash wages as well as your medical coverage to your employer. You can’t tailor coverage to your own needs. To get a better plan you have to change jobs. That’s just stupid.

The system creates the incentive to overspend on medical services. Since insurance premiums appear to be paid by your employer and since the policy covers routine elective services and tests, you have no reason to shop wisely in the medical marketplace. That’s one reason for the price inflation. Why ask about the price or the necessity of a test if someone else seems to be footing the bill? Doctors know that and will err on the side of more rather than fewer services.

If the politicians really cared about high prices and lack of choice, they would remove the tax penalty. Do those in power even talk about it? No.

State governments make a bad system worse by mandating that “basic” policies cover many services for which most people would not buy insurance if they were explicitly paying the bill, such as acupuncture, hair transplants, contraceptives, and more. These mandates are state-granted privileges for the providers, who would rather lobby for their profits than have to attract willing customers. Every mandate raises the price of insurance and pushes young and low-income people out of the market. Without those mandates, many people would buy low-priced, high-deductible catastrophic insurance. Government creates many of those uninsured the politicians cry their crocodile tears over.

If politicians really cared about high costs and lack of choice, they would neutralize coverage mandates by removing the federal ban on interstate insurance sales. Then a resident of a high-mandate state, such as California, could buy a policy offered in a low-mandate, such as Arizona.

The government forces prices higher in many other ways. Medicare, for example, gives a virtual blank check to its beneficiaries, who have no reason to be cost-conscious about the services they buy. Retirees have gotten far more in benefits than they ever paid in taxes while working. As long as Medicare exists, everyone’s medical services will be artificially expensive. Medicare is doubly offensive: The money is taken from current workers, and when it is spent it bids up the price of medical services for those workers. Considering its $37 trillion unfunded liability, Medicare is the disaster some people predicted when it was set up in 1965. As long as it exists the medical system will be awry and government will exert control.

Government also raises medical prices by sponsoring a protectionist medical guild in each state, keeping the number of doctors low and prices and incomes high. Occupational licensing is a conspiracy against the public masquerading as consumer protection.

Yes, we suffer from monopoly and high prices. Government is the reason.

by Michelle Maulkin, OneNewsNow.com

The White House, Democrats and MoveOn liberals are spreading healthcare sob stories to sell a government takeover. But there’s one healthcare policy nightmare you won’t hear the Obamas hyping. It’s a tale of poor minority patient-dumping in Chicago — with first lady Michelle Obama’s fingerprints all over it.

Both Republican Sen. Charles Grassley of Iowa and Democratic Rep. Bobby Rush of Illinois have raised red flags about the outsourcing program run by the University of Chicago Medical Center. The hospital has nonprofit status and receives lucrative tax breaks in exchange for providing charity care.

Yet, in fiscal year 2007, when Mrs. Obama was employed there, it spent a measly $10 million on charity care for the poor — 1.3 percent of its total hospital expenses, according to an analysis performed for The Washington Post by the nonpartisan Center for Tax and Budget Accountability. The figure is below the 2.1 percent average for nonprofit hospitals in surrounding Cook County.

Rep. Rush called for a House investigation last week in response to months of patient-dumping complaints, noting: “Congress has a duty to expend its power to mitigate and prevent this despicable practice from continuing in centers that receive federal funds.”

Don’t expect the president to support a probe. While a top executive at the hospital, Mrs. Obama helped engineer the plan to offload low-income patients with non-urgent health needs. Under the Orwellian banner of an “Urban Health Initiative,” Mrs. Obama sold the scheme to outsource low-income care to other facilities as a way to “dramatically improve healthcare for thousands of South Side residents.”

In truth, it was old-fashioned cost-cutting and favor-trading repackaged as minority aid. Clearing out the poor freed up room for insured (i.e., more lucrative) patients. If a Republican had proposed the very same program and recruited black civic leaders to front it, Michelle Obama and her grievance-mongering friends would be screaming “RAAAAAAAAACISM!” at the top of their lungs.

Joe Stephens of The Washington Post wrote, “To ensure community support, Michelle Obama and others in late 2006 recommended that the hospital hire the firm of David Axelrod, who a few months later became the chief strategist for Barack Obama’s presidential campaign. Axelrod’s firm (ASK Public Strategies) recommended an aggressive promotional effort modeled on a political campaign — appoint a campaign manager, conduct focus groups, target messages to specific constituencies, then recruit religious leaders and other third-party ‘validators.’ They, in turn, would write and submit opinion pieces to Chicago publications.”

Some healthcare experts saw through Mrs. Obama and PR man Axelrod — yes, the same Axelrod who is now President Obama’s senior adviser. But the University of Chicago Medical Center hired ASK Public Strategies to promote Mrs. Obama’s initiative. Axelrod had the blessing of Chicago political guru Valerie Jarrett — now a White House senior adviser.

Axelrod’s great contribution: re-branding! His firm recommended renaming the initiative after “internal and external respondents expressed the opinion that the word ‘urban’ is code for ‘black’ or ‘black and poor.’ …Based on the research, consideration should be given to re-branding the initiative.” Axelrod and the Obama campaign refused to disclose how much his firm received for its genius re-branding services.

In February 2009, outrage in the Obamas’ community exploded upon learning that a young boy covered by Medicaid had been turned away from the University of Chicago Medical Center. Dontae Adams’ mother, Angela, had sought emergency treatment for him after a pit bull tore off his upper lip. Mrs. Obama’s hospital gave the boy a tetanus shot, antibiotics and Tylenol, and shoved him out the door. The mother and son took an hour-long bus ride to another hospital for surgery.

I’ll guarantee you this: You’ll never see the Adams family featured at an Obama policy summit or seated next to the first lady at a joint session of Congress to illustrate the failures of the healthcare system.

Following the Adams incident, the American College of Emergency Physicians (ACEP) blasted Mrs. Obama and Axelrod’s grand plan. The group released a statement expressing “grave concerns that the University of Chicago’s policy toward emergency patients is dangerously close to ‘patient dumping,’ a practice made illegal by the Emergency Medical Treatment and Active Labor Act (EMTALA)” — signed by President Reagan, by the way — “and reflected an effort to ‘cherry pick’ wealthy patients over poor.”

Rewarding political cronies at the expense of the poor while posing as guardians of the downtrodden? Welcome to Obamacare.