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]