Meanwhile, back at Obamacare. . .

I have been opposed to President Obama's attempt to reform health care in America since the day I first heard about it. Mark Shurtleff, Utah's Attorney General tweeted moments ago, "One year ago today Obamacare passed. Ten minutes later I sued in federal court and won!"

Orrin Hatch (R-UT) weighs in one year later.

Mitt Romney promised what he would do after being elected president:

"If I were president, on Day One I would issue an executive order paving the way for Obamacare waivers to all 50 states. The executive order would direct the Secretary of Health and Human Services and all relevant federal officials to return the maximum possible authority to the states to innovate and design health-care solutions that work best for them.

"As I have stated time and again, a one-size-fits-all national plan that raises taxes is simply not the answer. Under our federalist system, the states are 'laboratories of democracy.' They should be free to experiment. By the way, what works in one state may not be the answer for another. Of course, the ultimate goal is to repeal Obamacare and replace it with free-market reforms that promote competition and lower health-care costs. But since an outright repeal would take time, an executive order is the first step in returning power to the states."

Watch for increasingly common sense statements like these to break out all over. The old management principle is easy to understand: "Sooner or later everybody knows everything."

The ongoing debate continues. Interestingly, the people who stand to benefit most and are by far the biggest segment of the population who access medical care -- the elderly -- are the most opposed to it. Coincidentally, I have been enjoying the rebroadcasts of Les Miserables (the 25th anniversary concerts on public television), and I now see the repeal of Obamacare as a call to action (see below). The objectives of Obamacare may be admirable (helping the poor and the elderly), but the financial reality of the debt burden on America is something completely different than what is possible. Unless Obama is defeated in 2012, there will be no repeal.

There has been a lot of "heat" over this issue in the last two years, but very little "light." Today, I received a concise summary of the financial reality we face in America (thanks, Tim).

I also stumbled over this YouTube video, an interview with a local businessman in Indiana, owner of several IHOP franchises, who explains his dilemma in attempting to come to grips with Obamacare. He leaves little doubt in your mind why Obamacare must be repealed or defunded. It's a mess for him and other business owners like him. All the mandates in the law will do is drive health care costs so high there won't be any room to operate.

The author quoted in the piece Tim sent to me, Lynn Britton the CEO of Sisters of Mercy (St. Louis) speaking to his executive team last week, stated, "On average, revenue as a percent of GDP has remained remarkably constant since World War II. During the post war era (1945 – 2011) there have been four major tax code 'over-hauls' and 13 total changes to the highest marginal tax rates ranging from a high of 94% to a low of 28% for the highest earning Americans. Said differently, the top marginal tax rate has dropped 71% with almost no effect on revenue as a percent of GDP. Clearly, we cannot tax our way out of our deficit." (Emphasis mine). Now there's a man how understands economics!

The problem with Obama and the Democrats is they got it wrong exactly 180 degrees in the wrong direction. Simply stated (I know, you don't get that very often, do you?) they zigged when they should have zagged. In addition to failing to expand access to health care across state lines and unhinging it from employer/employee programs (ever heard of free enterprise?), they also failed to fix the embedded cost structure and miscreant incentives under existing programs like Medicare and Medicaid. More affordable options get created through competition and consumer decisions from an array of cost choices. Note the key word -- choice. 

Now we face the conundrum with a misguided Washington creation. Employers are left to implement in an atmosphere of uncertainty while the courts wait for the SCOTUS opinion to emerge. Providers are also left to figure it all out themselves. Without the ability to eliminate pre-existing conditions, insurance companies will have no choice but to raise premiums. 

I'm with Tim, who wrote today, "Integrated care with evidence-based medicine is how Intermountain [Health Care] is attempting to do it."

Britton continues his analysis: "Since 1980, revenues as a percent of GDP are substantially unchanged.  However, entitlement programs during that same period have increased seven fold. By far, the largest increase in entitlement spending is Healthcare, rising from about $50 billion in 1980 to almost $800 billion in 2010. A whopping 16 fold increase in thirty years! As a percent of GDP, healthcare spending by government has risen from 1.2% to 8.2%. This change alone (7% of GDP) is nearly equal to the entire revenue the government receives from personal taxes. During the same period, out of pocket expenses by healthcare consumers have declined from 47% of total expenses to only 12% today.  This seems to indicate that lower relative out of pocket expense is at least a contributing factor to the problem." 

The author calls these "social taxes." We would call them entitlements. You can call it a calf's tail if you want, but calling it by any other name than what it is -- a sure-fire recipe for bankruptcy -- is lunacy.

Here's his conclusion: "No other cost in the federal budget has risen as much or as dramatically as healthcare costs. In fact, many other costs which have historically dominated the largest percentage of the budget have decreased by comparison. For instance, all military spending represents 19.9% of the federal budget in FY2010. Consider that in 1965 military spending was 65% of the total. In that same year, Medicare and Medicaid did not exist. Since it is not likely that increased taxes would yield sufficient additional revenue, and since we will not grow GDP fast enough to equalize revenue with spending, budget cuts are the only answer. Some economic advisors are urging the president to cut healthcare spending by 53% across the board. Even that draconian amount would only close 25% of the budget gap.

"Whether the president’s healthcare bill stands or not, there will not be enough revenue to sustain the current level of healthcare spending in the future. In fact, expanding coverage to more Americans will only widen the budget gap. Unfortunately, healthcare providers are likely going to bear the brunt of this social problem. There are few options and if these changes drive lower consumption – then so be it."

Who will stand against this ever-flowing and perpetual ocean of red ink? Watch for statesmen to arise and lead others to the barricades. Come join the crusade and let's get our national financial house in order. The world awaits our decision as a nation.

Download this mp3 from Beemp3.com

Do you hear the people sing?
Singing a song of angry men?
It is the music of a people
Who will not be slaves again!
When the beating of your heart
Echoes the beating of the drums
There is a life about to start
When tomorrow comes!

Will you join in our crusade?
Who will be strong and stand with me?
Somewhere beyond the barricade
Is there a world you long to see?

Then join in the fight
That will give you the right to be free!!

Do you hear the people sing?
Singing a song of angry men?
It is the music of a people
Who will not be slaves again!
When the beating of your heart
Echoes the beating of the drums
There is a life about to start
When tomorrow comes!

Will you give all you can give
So that our banner may advance
Some will fall and some will live
Will you stand up and take your chance?
The blood of the martyrs
Will water the meadows of France!

Do you hear the people sing?
Singing a song of angry men?
It is the music of a people
Who will not be slaves again!
When the beating of your heart
Echoes the beating of the drums
There is a life about to start
When tomorrow comes