As many of you know, I have over 30 years experience in the health insurance industry.  I was responsible for managing two 501C9 Employee Health Care Trusts for several years and also purchased the health insurance for a large employer.  For the next few days I will try to provide some insight into the Health Care Reform Legislation passed by the House on Sunday, March 21, 2010.

It is impossible to understate the significance of this legislation.  The goal of Pelosi, Obama and Reid (POR) is to lull us into sleep, so that we will not realize what is happening until it is too late.  In effect, they want to put us in a STU POR. 

Perhaps the best way to understand this legislation is to reflect on the statement by Speaker of the House, Nancy Pelosi:

 “After a year of debate and hearing the calls of millions of Americans, we have come to this historic moment. Today we have the opportunity to complete the great unfinished business of our society and pass health insurance reform for all Americans that is a right and not a privilege.”

The real significance of this statement is her pronouncement that this is the government establishing a right.  Our Declaration of Independence referred to rights that were given by our Creator.  These were “life, liberty and the pursuit of happiness.”   The role of government was not to give these rights, but rather to preserve them.  In this case, Democrats have stated that we now have an additional right, the right to health care.  But the problem is that this right is dependent upon the government.  It is a right, not given by our Creator, but rather by our government.  Most importantly, since the government gave you this right, the government can take this right away.

What every senior citizen needs to understand is that there is a major price for this new “right.”  This gives the government the authority to determine who gets what health care coverage.  It also gives the government the authority to determine who does not get health care coverage.

The following article published by the Cato Institute in 2002 documents the problem.

http://www.socialsecurity.org/pubs/ssps/ssp26.pdf

Here is my summary:  During the 1990’s, there were a lot of baby boomers working, while the new beneficiaries of Social Security were at a low point, because of low birth rates during the late 1920’s and 1930’s.  The result was a lot more new workers to tax and fewer people getting benefits.  When you combine this with the huge Social Security tax increase that started in 1983, this additional tax revenue produced huge surpluses each year.  But, the government did not save any of this money; instead, it used it to fund budget deficits from general fund obligations.   In other words, the government increased taxes on baby boomers, to fund our Social Security.  Then, they squandered the money over two decades.  Now, baby boomers are retiring and the government is broke.  In addition, the problem is going to get much worse.  In 2002 there were 3.3 workers for every retiree, but by 2030 there will only be 2 workers for each retiree.

The bottom line is that the government taxed us, threw away our money and now wants to cut our benefits to solve the problem they created by their irresponsible behavior.  Both political parties are equally responsible for this.

I personally think that one goal of health care reform is to cut benefits for baby boomers.  Notice that President Obama admits that a significant portion of “savings” will come from reductions in Medicare payments to doctors and hospitals.  The government would have us believe this will result from more efficiency by government management.  Really?   Does anyone actually believe that management by the federal government will reduce cost?  When has that ever happened?  The sad reality is that even now, Medicare does not pay the full cost for services provided by doctors and hospitals.   This is the real reason why insurance premiums are increasing.   Doctors and hospitals are not receiving adequate compensation from Medicare, so, they must charge more for patients covered by insurance.  Now that same government, who caused the problem, is blaming the cost increase on…you guessed it…insurance companies.  Please!

My advice to anyone who is now, or hopes to be a senior citizen, is to understand one thing.   If we do not stop this now, the entire cost of the financial mismanagement by the federal government over the last 20 years will be heaped on our shoulders.  Do not fail to understand these simple realities.

There is not enough money.

There are too many baby boomers.

The cost of health care for seniors is very high.

The cost of health care for younger people is very low.

The most expensive health care occurs during the last 18 months of life.

The government now has the authority to decide who gets health care.  Do you really think the government, when it runs out of money, will willingly spend more money on senior citizens rather than on younger, more productive people?

In an interview with George Stephanopoulos, on January 29, 2009, Nancy Pelosi was asked why she asked President Obama for millions of dollars to fund abortions. 

Her response:

“Well the the family planning services reduce cost. It reduce cost. The states are in terrible ffff uh fiscal budget uh crisis now and and part of it what we do for uh children’s health for education and some of those elements that are to help the states meet their financial needs.

One of those one of them ahh initiatives you mentioned ah ah contraception is well reduced cost to the state and to the federal government.”

In other words, contraception and abortions save money, because they conveniently reduce the number of people who receive benefits.  This is the person who just may decide how much cost we are willing to spend on senior citizens in the future. 

Seniors need to unite now and get this bill overturned.  Right now we have the political clout to stop this disaster.  We owe it to ourselves.  We owe it to our children.  We owe it to our grandchildren.  It will not stop with this generation, if we do not act.  But, if we act, we can stop it with this generation.

“Do not go gentle into that good night,

Old age should burn and rave at the close of day;

 Rage, rage against the dying of the light.

Dylon Thomas [Do Not Go Gentle into That Good Night]

Pelosi, Obama and Reid (POR) are giddy with the sweet smell of victory.  But, sometimes a big win is the precursor to disaster.  In 1990, Cosmo World Corporation bought the Pebble Beach, Spyglass Hill, Spanish Bay and Del Monte Golf Courses, along with the Lodge at Pebble Beach and the Inn at Spanish Bay.  Recall that Japanese interests has also recently taken control of New York’s Rockefeller Center, Columbia Pictures, CBS Records and several other prestigious U.S. hotels.  Many Americans were concerned that the United States economy was about to become a subsidiary of Japan.

The following story from the September 17, 1990 edition of the New York Times describes the glee displayed by the Japanese at bagging this trophy.

http://www.nytimes.com/1990/09/17/business/pebble-beach-glee-is-hard-to-hide.html?pagewanted=all

But, the problem was that, prior to purchasing Pebble Beach, Cosmo World Corporation had grossly underestimated the cost.  This purchase was based on projections that were impossible to achieve.  On February 22, 1992, the following headline appeared in the Washington Post

Struggling With Debt, Japanese Developer Sells Pebble Beach Golf Links

The Washington Post | February 22, 1992 | Martha Groves

POR pushed through this bill with the belief that ultimately, Americans would be grateful.  However, I honestly think they failed to consider the cost.  They were so anxious to get this passed, that they never considered the possibility that those opposing the bill might be right.  No plan or strategy, based on something that is untrue, is likely to succeed.  This entire bill is based on the false premise that we can provide free health care to an additional 31 million people at no cost. 

Perhaps the following quote from Winston Churchill [White House luncheon, June 26, 1954] says it best:

The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtual of socialism is the equal sharing of miseries.

Tonight Al Sharpton said that when American’s voted for Obama they were voting for socialism.  Actually, that may be true, but they didn’t knowingly vote for socialism.  The Democrats have written a check, with our money, that they cannot cash.  They cannot possibly raise taxes enough to pay for this. 

On February 5, 1976, Prime Minister Thatcher, during an interview by Llew Garner on the Thames Television show This Week, said that:  Socialist governments traditionally make a financial mess.  They [socialists] always run out of other people’s money. 

If POR are right, and this is a great idea, the economy will rebound, everyone will have free health insurance forever,  and people will look back upon tonight as a cause for celebration.  But, if their critics are right, and this is a complete disaster, then their future is a POR GONE CONCLUSION.

Nancy Pelosi obviously felt that this bill would pass.  Therefore she decided to prance across the Washington Mall, surrounded by protestors.  She was, in effect, flipping the bird to the American people. 

The following picture is from the Drudge Report.

Right now, Nancy Pelosi is feeling on top of the world.  Odds are that Democratic congressional representatives running for re-election this fall will come to hate this picture. 

The Democratic party has thumbed its nose at the American people.  They believe that when people learn more about this bill they will be happy.  They believe that the American people are stupid and only opposed this bill because they did not know what was good for them.   I wonder if they realize the genuine anger this will ignite.

If you watched the protests, one thing became very obvious.  The pro-health care protestors all had lovely, professional designed signs.  Example:  Catholics for Health Care Reform.  The anti-health care protestors on the other hand had mostly hand written signs.  

Democrats believe they have won a major victory.  They certainly appear to have successfully jammed universal health care down the throats of an unwilling American public.

I have decided to give a name to the Pelosi, Obama, Reid gange of three.  The perfect descript is “POR”, because that is what we will all be if this bill passes.

Democrats are convinced they have the votes, but this article was only released a few minutes ago.  I wonder who is doing the counting.  Oh, I know, the same people who are telling us that this will somehow miraculously reduce the deficit.

http://thehill.com/homenews/house/88045-stupak-dozen-is-now-a-half-dozen

Nancy Pelosi, Harry Reid and Barack Obama are acting like they have the votes for health care reform.  If they don’t, this is going to be very embarrassing.  At this point, we will assume that they do have the votes, but the question remains:  for what?  No one seems to know.  One option is that the House will vote to approve the Senate bill, as is.  If they do that, Obama will quickly sign it, and it will become law.  I find it hard to believe that House Democrats will actually vote for the Senate bill, as currently written.  My guess is that they are going to vote on a reconciliation bill first, for which they may be able to get the votes.  Then, the will vote on the Senate bill, with the understanding that the reconciliation bill will change the bill.

The belief is that this reconciliation bill will be passed by the Senate, with a simple majority and the law will be singed into action.  Even if this passes the House tomorrow, this is far from a done deal.  The Republicans in the Senate appear to be very united and they are going to work very hard to stop this legislation.

In the theme of the day is, Trust Me, I’m Lying.  Pro-life democrats are being told that federal funding of abortions will be banned in the final bill.  Pro-choice democrats are being told that federal funding of abortions will not be banned in the final bill.  Obviously, someone is going to make this vote based on a bald-faced lie.  House members are being told that the Senate will be able to pass this bill. 

In my opinion, the Democrats are big losers either way.  Some people think they are better off passing this than not, but I strongly disagree.  There is unprecedented anger and disgust for this congress and this administration.  While a handful of people on the extreme far left will be ecstatic, a high percentage of Americans will be more than dismayed, they will be frightened.  More importantly, they will be furious.  At this point we better hope, if it passes in the House, that people will have faith that the Senate or the Supreme Court will be able to stop it.

Glenn Beck often has his finger on the pulse of America better than just about anyone else.  If you noticed lately he is practically begging people to remain calm and to avoid violence.  There is a reason for that.  When a government ignores public opinion to the extent it is being ignored by this government, there is a significant potential for wide spread public outrage.  It would not take much of a spark to ignite a revolution.

There is a lot going on, and don’t be surprised to see the vote postponed once again.  The worst case scenario for Obama, Pelosi and Reid is a straight up and down vote that fails.  Such a defeat would literally end the Obama Presidency for all practical purposes. 

Right now, the Republicans look gloomy and Nancy Pelosi looks giggly.  That is usually a bad sign.  We will know tomorrow.