Ron Paul: We Need True Competition in Medical Care

Venue: House of Representatives
Date: 9/23/2009


Government has been mismanaging medical care for more than 45 years; for every problem it has created it has responded by exponentially expanding the role of government.

Points to consider:

  1. No one has a right to medical care. If one assumes such a right, it endorses the notion that some individuals have a right to someone else’s life and property. This totally contradicts the principles of liberty.
  2. If medical care is provided by government, this can only be achieved by an authoritarian government unconcerned about the rights of the individual.
  3. Economic fallacies accepted for more than 100 years in the United States has deceived policy makers into believing that quality medical care can only be achieved by government force, taxation, regulations, and bowing to a system of special interests that creates a system of corporatism.
  4. More dollars into any monopoly run by government never increases quality but it always results in higher costs and prices.
  5. Government does have an important role to play in facilitating the delivery of all goods and services in an ethical and efficient manner.
  6. First, government should do no harm. It should get out of the way and repeal all the laws that have contributed to the mess we have.
  7. The costs are obviously too high but in solving this problem one cannot ignore the debasement of the currency as a major factor.
  8. Bureaucrats and other third parties must never be allowed to interfere in the doctor/patient relationship.
  9. The tax code, including the ERISA laws, must be changed to give everyone equal treatment by allowing a 100% tax credit for all medical expenses.
    Laws dealing with bad outcomes and prohibiting doctors from entering into voluntary agreements with their patients must be repealed. Tort laws play a significant role in pushing costs higher, prompting unnecessary treatment and excessive testing. Patients deserve the compensation; the attorneys do not.
  10. Insurance sales should be legalized nationally across state lines to increase competition among the insurance companies.
  11. Long-term insurance policies should be available to young people similar to term-life insurances that offer fixed prices for long periods of time.
  12. The principle of insurance should be remembered. Its purpose in a free market is to measure risk, not to be used synonymously with social welfare programs. Any program that provides for first-dollar payment is no longer insurance. This would be similar to giving coverage for gasoline and repair bills to those who buy car insurance or providing food insurance for people to go to the grocery store. Obviously, that could not work.
  13. The cozy relationship between organized medicine and government must be reversed.
    Early on medical insurance was promoted by the medical community in order to boost re-imbursements to doctors and hospitals. That partnership has morphed into the government/insurance industry still being promoted by the current administration.
  14. Threatening individuals with huge fines by forcing them to buy insurance is a boon to the insurance companies.
  15. There must be more competition for individuals entering into the medical field. Licensing strictly limits the number of individuals who can provide patient care. A lot of problems were created in 20th century as a consequence the Flexner Report (1910), which was financed by the Carnegie Foundation and strongly supported by the AMA. Many medical schools were closed and the number of doctors was drastically reduced. The motivation was to close down medical schools that catered to women, minorities and especially homeopathy. We continue to suffer from these changes which were designed to protect physician’s income and promote allopathic medicine over the more natural cures and prevention of homeopathic medicine.
  16. We must remove any obstacles for people seeking holistic and nutritional alternatives to current medical care. We must remove the threat of further regulations pushed by the drug companies now working worldwide to limit these alternatives.

True competition in the delivery of medical care is what is needed, not more government meddling.

  • Marc Kruza

    Will someone PLEASE tell me what you’re supposed to do if you lose your job, your insurance, get sick or have a chronic disease, and cannot get treatment OR afford coverage? This happens to people who have been frugal and saved their entire lives. What about the rights of those individuals? What if someday it’s you???

    • I have a plan – a complete plan – would you like to see it?
      [email protected] (sample)
      Promote each doctor to have his own “Doctorcare” Ins. for his own patients.
      Any Health ins. pays the patient and the patient pays the bill.
      If you are too poor to pay medical bills – BORROW the money from the government and repay it through payroll deductions like you pay SS now. IF you never are able to payback gov. – we then take it on the chin – which won’t happen much if the IRS is let in.
      Why do Doctor visits cost so much? There was a time when you went to the doctor and paid the doctor $10. You then got a job that supplied you with health Ins. You then went to the doctor and the visit cost was $20 – Ins. paid – you paid nothing. The next time you had a doctor visit it cost the Ins. Co. $30 – you said nothing. Next time the visit cost was $50 paid for by ins. – you said nothing. The next time the cost was $75 – Ins. paid $70 and you had to pay $5 – now you show a little concern but you say nothing. Next time the visit cost was $100 – Ins. paid $75 – you had to pay $25 – now you are furious. The next time the visit cost $125 – ins. paid $95 – you had to pay $30. Now you rant and rave – the greedy insurance co. bla, bla bla. You place the blame on the ins. co. – not the doctor. The truth is the ins. co was very generous their cost went from $20 to $95 – that a huge increase – a 475% increase. The doctor’s income went from $10 to $125 – a 1250% increase – wow – that’s obscene. Who’s the culprit – the doctor. You’ve been duped. Government and other unscrupulous people wrongly convinced you to place the blame on ins. cos. But, wait a minute – a big reason why the doctor charges so much is because healthcare is over regulated by government. Government forces the doctor and ins. co to file this paper and that paper – keep tact of this and that. Government has their hands in all medical requirements and payments – they strangle the healthcare industry – it’s not over the care – it’sover the money. Government is the reason healthcare is so messed up and why it costs so much. Government is the reason there is fraud misuse and overpayment in medical care. But, hold on again – it’s your fault too. You got the medical care but because you didn’t directly pay you weren’t concerned with how much it cost (until you found you had to pay too). Fact is if you always directly paid the whole bill you would have complained long ago and the cost would not have gotten so high – yup – it’s your fault too. Truth is – if there were never insurance and you always paid the whole bill the cost of your doctor visit would have risen. It probably would have risen 300% (that’s a triple in cost) from $10 to $30 – but there is no way it would have went up 1250% or beyond where it is now.

      No one is pleased we’re just being squeezed; stop this disease before we get seized.
      American Citizens – write the right plan!!!!
      Has it even been done – the citizens write the law – government enacts that law? It will be one of America’s greatest moments. You can write history. America can make history. We can Show the world that America IS “We The People” and that Greatness abounds within America’s people. This will be; “The Pen Stroke Heard Round The World”

  • SW

    “If you want free healthcare go to Cuba where it’s totally accepted for a man to sell his daughter to buy himself a beer.”

    Al Beal What the hell are you talking about? First of all I’ve been to Cuba and that’s complete nonsense. You live in a fantasy world filled with right wing talking points and gibberish. But why go to Cuba? Why not France, Italy, England, Germany, Japan or anywhere in THE REST OF THE CIVILIZED WORLD?
    If you don’t want all these evil government entitlements why not move to a nice place where they don’t have them. We call them third-world countries. Have fun in Haiti or Singapore. But you should do fine because you’re such a great provider and do it all on your own. Be sure you don’t use our socialist roads, our communist police and fire protection and if someone doesn’t pay you, don’t use our big government run courts to enforce your contracts.

    If we don’t have a right to health care why do we have a right to free police protection? Why do we have a right to have our food inspected? Why do we get free military protection for all. That has to end too I guess.

    Morons like you are why we are paying twice as much as anyone else to have the 37th rated health care system in the world. Go find a nice island and see if you can succeed by yourself. Just think no evil taxes!


  • christine

    We as Americans should be the ones voting on this health care issue with our own personal vote, not by a democrat or a republican politician. They have too many conflicts of interests with big pharma lobbyists and the profits that the UNITED STATES OF AMERICA, a federal corporation will make off any government-controlled health care plan. Any plan they come up with will be for THE CORPORATION’S benefits, not ours.

    Insurance is an extra health care expense.

    Insurance does not reduce the cost of drugs and health care services. It can only restrict care and reduce their payouts for their own profit to benefit themselves and their shareholders. These same people are not on THE PLAN. They have their own for a good reason.

    • sean

      No we shouldn’t vote on health care as people. That is called a democracy, we have a republic government.

      They are making a co-op program. No corporation will benefit from that. Co-op’s are a non-profit businesses owned and ran by the people.

      “A cooperative (also co-operativeor coöperative; often referred to as a co-op or coop) is defined by the International Co-operative Alliance’s Statement on the Co-operative Identity as an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.[1] It is a business organization owned and operated by a group of individuals for their mutual benefit.[2] A cooperative may also be defined as a business owned and controlled equally by the people who use its services or who work at it. Cooperative enterprises are the focus of study in the field of cooperative economics.” – wiki

      We have the same thing for car insurance..

      • Al Bel

        the republic is broke they don’t represent the people they are ruling the people.
        An old joke says
        Democracy is three wolves and a sheep voting on dinner.
        In a republic, the sheep get to vote for which wolves will vote for dinner. But in a constitutional republic, mutton is outlawed and the sheep are armed.
        [America has now put mutton back on the menu].

        We’re looking for good people with more than concern about our community’s conditions. Current organizations talk but don’t (can’t) act. If you are willing to do more – let’s hear your ideas.

    • Forest

      “We as Americans should be the ones voting on this health care issue with our own personal vote, not by a democrat or a republican politician. They have too many conflicts of interests with big pharma lobbyists and the profits”

      Riiiight. And ‘the people’ always make the best decisions when it comes to fiscal restraint – why don’t you see how that is working out for California?

  • Terry

    Only thing I want is a plan that eliminates the middleman ( insurers)..There are employers who negotiate directly with providers and have been doing this for over a decade and save tons of bucks. I do not understand this line..I don’t want to pay for someone elses insurance…Uh..whats the difference if you pay a premium to a insurer or a tax to the goverment for coverage? You pay the insurer a premium, a copay and a deductible..then they have this nasty habit of dropping you when you start to cost them money. Single payer you pay a tax and nothing else. Dr Paul, Dick Army? Who pays for your insurance???

    • Al Bel

      Health insurance companies, weather they are furnished by employers or not, do not save you money. their future profits are based on how much they payout in the prior times. Their incentive is to pay providers more to make more profit. this is the way your government has set the rules. Why have doctor visits gone up so much?

      You may want socialized healthcare but you can’t possibly believe it will cost less.

      I have written “The American Citizens Healthcare Plan” I posted it September 28, 2009 at 7:22 pm. It is very long so you and others haven’t taken the time to read it. It is a complete new approach and new model. Please take time to read it (the entire plan) before you poo poo it.America is in serious trouble please put aside self-interest and read it with an open mind. If you (or anyone) wants see it or discuss it please let me know.
      [email protected]

      • John

        That’s not true. Insurance companies figure out how to pay the doctors the least amount possible in order for services rendered. This is magnified by the government run insurance plans. That is the reason (and insane malpractice suits) why doctors have to charge more and more just to get paid the same. From working in several doctor’s offices myself (and studying to be a doctor as well), you have to charge Medicaid/Medicare twice as much to get the appropriate amount back.

        For example, for a simple eye exam (I am in optometry school), you would charge a cash paying patient $60, but you must bill Medicare/Medicaid at least $120 to receive $50 in compensation.

        • Al Bel

          the government regulations say that the insurance co. premiums are set by past payouts. That IS the truth. the corruption we are seeing is because so many hands are in the pot and the insured has no say in who pays what. some form of patient direct payment for healthcare WOULD bring costs down.
          It’s funny that you know the problem with gov. having their hands in the process when you wrote “you have to charge Medicaid/Medicare twice as much to get the appropriate amount back. The doctors are corrupted – they cheat by over billing AND the gov. allows it….. and you want more of the same?
          I posted a common sense plan on these boards that changes everything and puts the patient in control. please read it
          If you want – I’ll send you a copy direct [email protected]

  • Wrong on this one too, Mr. Paul. Everyone today has a right to medical care. If you had said this 300 years ago I might have agreed. However, in today’s world, there is so much air pollution, polluted water, bad living conditions, genetically modified food, destructive competition, etc; all contributing to the dangers an individual faces in terms of maintaining good health.

    How can anyone be free without good health? Healthcare is one of the basic needs of the individual. I see you are from Texas? Hmm, this explains most of your whacky ideas. It will be a sorry day if you ever reach any office of considerable importance. Frankly, Mr. Paul, you are a fool.

    • Al Bel

      Mr. Gabrial – you are the perfect example of using the pen as a sword. You have twisted your socialist desire to make your wish for something for nothing sound like compassion and a right. you can’t compete so take what you want from others. but who’s the fool? you are because once you take all the producers are willing to give you’ll be left alone to parish – you will parish because you just can’t do anything but steal.If you want free healthcare go to Cuba where it’s totally accepted for a man to sell his daughter to buy himself a beer.

      open your eyes and look far down the road government healthcare road end up in Cuba. go there and see – weather you work or not you get $8 aday – ain’t that wonderful!

      America we need to write the healthcare bill or these goofballs will seal our fait

      We all know what healthcare should be. We know HMO’s suck – We know why it costs so much – we know government and insurance messed everything up – we know we should not be forced to buy insurance – we know healthcare providers spend more time on paperwork and money collection than they do treating us – we know what all the problems are. We know that within our minds we know how to fit these problems. All we don’t know YET is how to write it all down. Each one of us can draw out our pens. Together we can put it on paper – together we can decide on each clause – together we can make our thoughts stand.

      It was said long ago that “The Pen Is Mightier Than The Sword”. We now know this to be true. Over decades of time the pen has influenced and persuaded us into thinking without logic. The pen has written speech after speech – law after law that slowly and steadily convinced us to listen instead of act. The pen has enslaved our American minds into accepting an ideology that is at the opposite spectrum from where it began. America – open your eyes – open your mouth – pick up your pen. We can get them to stop the vote – we can write a good healthcare plan – we can get this done. Healthcare – you must understand; 2+2 MUST MAKE 4 We can do it when no one else can. I have picked up my pen – will you pick up your pen? Together our sword (pen) is mightier than theirs.
      [email protected] – glad to hear from you for more info

    • Lindsey

      John: I suggest you go back to the Daily Koz or Huffington Post where your belief in communism is shared by the rest of the readership. Our Declaration of Independence says we have a right to life, liberty and the pursuit of happiness. There is no right to health care mentioned! The document applies as much today as it did then. (That is if you want the USA to remain the same country) Do you? I also see that you have something against Texans. Why?

  • Al Bel

    The American Citizen’s Healthcare Payment Plan

    Phase 1:

    1. – Allow all Ins. Cos. to sell nationwide to any and all people groups or organizations.
    Why are there only a few ins. cos. to choose from within each state? Whatever the reason is or was it has no merit. We don’t weather it is corruption, lobbyists or past reasons – it doesn’t matter. Our citizens want (need) more choices and be free to choose any insurance company in business. Any debate against cross state insurance purchases is bogus. People having more places to shop creates competition – competition lowers prices for the consumer – there is no debate about that – it’s a no brainer.

    2. – Health Ins. premiums are to be equal for all people – no discounts for groups or organization. All health ins. plans cost the same for everybody.
    Why should your insurance be cheaper if you work at X company than if you work for Z company? Why should your insurance cost more if you don’t belong to a certain group? Each insurance policy covers individuals within the group called America. We are not talking about shoes here – we’re talking about medical costs. All Americans should be entitled to the price for the same product in a market as big as America. We can put that another way – we want a group policy that offers the best price possible – our group is America – every American is a member of the group called America. Those that get the cheaper price now will bitch about this – they will bitch until they are faced with the situation as others are now – unaffordable medical costs. For those that have no representation – the poorer amongst us – those that aren’t in a union – those that aren’t fortunate enough to have a mouthpiece speaking for us have been at a disadvantage. It’s time we level this playing field and allow every American equal opportunity for medical care. This may result in more cost for some in the beginning (while others get their price lowered) but over time this equal pricing will lower the cost for all Americans. It will also enable all Americans an opportunity to change jobs or any social circumstance without the fear of encountering unaffordable medical treatment. Only the elite that want to suppress others will quarrel with this. Corrupt thinking is the only explanation for disagreeing with fair pricing for all for a product as crucial as healthcare.

    3.- All Employer Healthcare Plans are to be converted to employer healthcare cash payments to employees to enable employees to buy individual health ins. plan.
    All employers that pay for its employee’s health insurance will continue paying for their health insurance. The difference is they won’t pick the insurance company for the employee – the employee will get the money to buy his own insurance from any company he chooses. If the employee chooses not to buy insurance he looses the money – same way an employee that is offered money to enroll in a retirement program now. If an employee joins the retirement plan he gets the money – if he doesn’t enroll he gets no money. Our new healthcare plan calls for ALL people to pay the same price for the same insurance so the change from employer health insurance to employer health payments will have no change – no added expense – no change in coverage. The change will be that the employee will now be able to shop for better cheaper insurance policies than he has now. This will result in cheaper better healthcare for himself and all fellow Americans.

    4. – Employers get tax deduction for providing money to employees for health ins.
    This will encourage employers to continue providing money for health costs. It also provides other employers to provide employees with money for health costs. It is fair and equal – no employers excluded or favored.

    5. – Employees get tax deduction for buying health ins.
    Any and all American citizens shall receive a tax deduction for healthcare costs. A 100% deduction for health insurance and health accounts. There shall be no “special treatment” “special incentives” or any other “special situations or circumstance” for any American citizen no matter what.

    6. – Doctor Care Insurance is legal and encouraged. This is a new type of healthcare ins. for primary doctor visits and doctor treatments. Each doctor may operate their own plan for his own patients. Doctor care insurance is a plan where patients pay regular premiums to their own doctor and receives free visit and treatment – same as current health ins. Doctors will be encouraged to operate these insurance plans. All doctors shall be eligible and no doctor shall have preference in any way or for any reason whatsoever The rules and guidelines shall be written by a team of doctors and insurance executives with no interference or input from congress government officials or government agencies.
    These plans will have many benefits. Among the benefits are the strengthening of doctor patient relates. It will make the doctors payment collections more secure and less stressful. The doctor will have more time for patients and spend less time on complicated book keeping. The excessive paperwork and requirements by government and insurance companies will be gone. These plans will remove fraud and misuse. This means the patient will be making payments directly to the doctor and not to a third party. This will control doctor visit costs and eventually decrease the cost of visits. It will encourage patients to see the doctor more regularly and not wait until an illness festers and worsens and becomes more costly. This will cause many people to maintain 2 insurances – health and doctorcare. This will not be redundant or more costly. Health insurance companies will now be able to offer policies where doctor visit are an option (like dental and vision are now) thus reducing the cost of the normal health insurance policy.

    7. – Doctors will receive tax incentives and tax deduction to establish Doctor Care Ins. Plans.
    This will reduce the price a doctor must charge for Doctor Care Insurance. It will also provide the incentive for doctors to operate ins. plans.

    8. – Give people tax deduction for doctor payment plans and all health ins. premiums.
    There shall be a 100% tax deduction for health insurance and health accounts. There shall be no “special treatment” “special incentives” or any other “special situations or circumstance” for any American citizen no matter what.

    9. – All people below the poverty level receive medicade/medicare – the same as the elderly receive (elderly will have no change from the present.
    This is included here to insure these people will not loss the benefit they have now. Those that don’t have ins. and those that can’t afford to buy ins. are currently a big problem – they are draining our resources. But now each of these people that work would have health accounts and would potentially repay part or all Medicaid/ medicare payments. As worker’s healthcare account balances rise the number of uninsured and those unable pay will shrink. All the improvements contained in this healthcare plan will also dive down medical costs both enabling more people to be able to pay and when the government has to pay the cost will be less.
    Fact; no person in America today is refused medical care. If you don’t have ins. and/or can’t pay your medical bills ALL people are covered by Medicaid/ medicare and/or other government agencies. That’s the current law. All the talk about poor people not having medical coverage is propaganda – no person in America has to go untreated. All the “powers that be” are playing on your sympathy – it’s a real con job by ALL government people.

    10. – No illegal residents shall receive government paid healthcare. Only American Citizens receive any medical payments – without exception.
    No explanation required.

    11. – Guidelines shall be established for doctors tests – no unneeded testing – no “defensive tests”.
    This will give the medical and legal system rigid rules about what negligence is and what is not considered negligence. This will give juries a rigid standard to go by in deciding lawsuits.

    12, – Reform lawsuit laws to discourage excessive lawsuits
    The cost of a frivolous lawsuit will become the cost of the lawyer that initiated the suit.

    13, – Develop guidelines and parameters for doctor negligence dollar settlements.
    Juries and non-affected parties now use emotion when determining awards. This eliminates excessive awards.

    14. – Develop punitive damages guidelines – no settlements to be super-excessive.
    Juries and non-affected parties now use emotion when determining awards. This eliminates excessive awards.

    15. – Phase all healthcare changes over a 2 year time frame.
    This will make the transition possible.

    Phase 2:

    A). – Individual healthcare accounts are now established – these are individual accounts similar to current retirement accounts (same basic rules) except it is mandatory (like social security). The deduction shall be 3% of the gross of employee’s paycheck. This shall be tax deductible. All employers will make proper deductions from paychecks and forward the money to the employee’s health care administrator (bank mutual fund etc.). The account is in the individual’s name and NOT held or administrated by government. The money in these accounts is used only for medical costs and nothing else. In the end, all remaining money in an individual’s account goes to heirs or elsewhere as directed by the individual – this money shall not be taxed. The individual owns the account, the only involvement of government is to insure proper administration and that the money is used for the owner’s medical expenses to the end. From time to time an individual’s account may have a negative balance (see other clauses) in that event there shall be no penalty or interest charge to the account owner. If at the age of 60 or at a later age any individual account balance exceeds a minimum amount – set by figuring the average medical cost expectation for the individual – the individual may withdraw the excess (tax free). If and when an individual’s healthcare account totals an amount equal to the average medical cost spent yearly then all money above that figure shall be eligible to be invested under the same terms and conditions as retirement

    accounts. If healthcare money is placed in investments and a future illness occurs where the individual’s medical costs exceed the amount of cash contained within the account the investments shall not be deemed necessary to make up the deficit, instead a government loan shall be issued to pay the remainder of the outstanding medical costs. That loan shall then be repaid over time by the individual. Gains from investments shall not be taxed.
    How do we start a direct payment method – there would be no money in health accounts? Anytime a person needs medical treatment but doesn’t have enough money in there health account an automatic (interest free) government loan would enable loan payment to be made from the health account. The patient would then repay the loan when insurance reimburse them and/or regular health account deposits would enable repayment of the government loan. That would mean your health account may sometimes have a deficit. That would be just like a credit card is now except there would be no interest penalties or fees. There will be people that become disabled or die or otherwise can’t repay the loan. In those instances the government would absorb the loss – just like they do now – it’s Medicaid/medicare.
    How would health accounts work? They would work similar to the way social security does – mandatory payroll deductions. The difference is that instead of your money going to the government and the government administering your account the healthcare deduction would go into your own special bank account and you administer it yourself. This money can only be used for medical purposes. Government would not be able to take your money – use it for other purposes or keep your money in the end. Your health account would be yours and in the end you would decide what to do with any excess remaining – give it to your heirs or whatever you want. If you manage your healthcare properly you may have a substantial sum later in life.
    The vast majority of Americans will have health insurance and doctor care insurance. Between these two medical treatment methods of payment a person that manages their healthcare costs properly might never need to use the money that accumulates in their healthcare account. This individual could end up accumulating a substantial sum later in life.
    Healthcare accounts will become thought of as a sort of a nest egg or a rainy day account. This will give additional incentive for individuals to shop carefully and control the cost of medical treatment thus driving down the overall medical costs for all Americans.
    How would banks and administrators handle these health accounts? They would be handled similar to the way retirement accounts are now. All that needs to be done is apply the same rules to health accounts that banks mutual funds and others do for retirement accounts.
    Why confuse things by establishing a new primary doctor care ins.? This would open up a new world of benefits and improved health care. It personalizes and strengthens doctor patient relations. It secures payment without over regulation costs – without excessive booking – without risk of nonpayment. It eliminates fraud and abuse that occurs now. It also strengthens direct payment – that direct interaction between doctor and patient will reduce costs and enable better treatment.

    B). – All American citizens shall be qualified for government healthcare loans. If any citizen requires medical treatment but doesn’t have healthcare insurance or enough money in their personal healthcare account and can’t afford to pay the cost of the treatment the government shall make an interest free loan to the individual for medical care payment. If, for valid reasons, the loan goes unpaid the government absorbs the loss.

    C) – There shall be no third party healthcare payments. All healthcare payments are made directly from patient to healthcare provider (except Medicaid / medicare and other government subsidy payments). . It is the insured responsibility to pay healthcare bills.
    How can people pay first and then wait to be reimbursed? Each and every person will have a health account where a portion of there pay go directly into (like social security payments are now) They are allowed to draw on this account to pay medicals costs only and when they are reimbursed by ins. that money goes back into the health account. Over time all people would have money to pay first and get reimbursed. If/when there is not enough money to pay first and wait for reimbursement the government shall issue an interest free loan to bridge the payment. Insurance companies should not pay directly to health providers – this makes costs high and enables the potential for fraud and misuse. All people should pay health costs and then be reimbursed by ins. Co. Also; by doing this people would negotiate the fees for medical costs – any savings they negotiate would benefit themselves and this would allow people to keep tract of the costs. If every person were to pays for their own medical costs those costs would be a small fraction of what the costs are now. Patients would negotiate to drive prices down. The competition would demand suppliers take less.
    In every single incidence where a third party pays (Ins. Co., Gov. etc.) the cost is higher. A few examples:
    • Auto accidents; if you pay it’s cheaper than if an Ins. Co. pays
    • Apartment rental; if you pay it’s cheaper than when Gov. welfare pays the bill
    • Business travel; you get it for less if you pay – if the employer pays it costs more.

    • If you have to make a $10,000 down payment to buy a house you buy a $100,000 house – if you don’t have to make any down payment you will buy a $150,000 house.
    • Teeth cleaning; if you pay it’s $30 – if Ins. pays it’s $60
    Why do Doctor visits cost so much? There was a time when you went to the doctor and paid the doctor $10. then doctor visits converted mostly to a third party payer. There is now no direct interest in the amount paid and the cost skyrocketed. Direct payment will dive these costs down.

    If you think medical costs can’t get dramatically cheaper – you’re wrong. My first computer cost me $9000 – my last computer is 100 times better than the first one was and it cost me $1800. I paid for every computer I bought – competition drove those prices down. The key ingredient to a free market is the payer shops and the shopper pays – not someone else with misaligned interests pays. Medical costs are no different than any other exchange of goods. Simple eyeball to eyeball – consumer to supplier works. Receiver is the payer controls fraud – receiver is the payer controls prices.

    D) – Healthcare payment is first paid by the individual’s health ins. If not insured or ins. doesn’t cover the amount owed healthcare account money is used. If both those options are exhausted or do not cover the costs the government will supply an interest free loan to the individual for payment. If the individual can not repay the loan for valid reason the loss reverts to Medicaid / medicare and/or the government.

    E) – Phase 2 will implemented over a time frame that completes phase 1 and 2 into a complete plan.

    F) – Covering Preexisting conditions; Any insurance company may offer insurance that covers preexisting conditions but it will not be mandatory. it would be nice to have it mandatory for ins. to pay for preexisting conditions – but that isn’t a good idea. If ins. cos. have to cover preexisting conditions your premiums would soar. An ins. co. collects premiums and hopes you won’t get sick until you have paid enough in premiums to cover the payout – that’s a gamble – a gamble they are willing to take. If they have a huge payout for a known prior condition before they collect enough premiums to cover the payout where would the money come from? It would have to come from others without a preexisting condition – from huge premium increases for all. Also; if you knew you would be covered for a preexisting condition why would you buy insurance? You wouldn’t – you would wait until you’re sick and then buy insurance to pay the bills (that is currently called fraud – rightfully so). After your illness was cured why would you continue buying insurance – you wouldn’t. The only way covering preexisting conditions would be feasible is if every person were forced to buy ins. from cradle to grave. Now you know why the ins. cos. aren’t screaming against the current healthcare plans – it would be a bonanza for ins. cos.

    G) – There shall be NO add-ons, NO misdirected funding, No pork-barrel inclusions – NO gimmicks added to this plan.

    Supplemental possibility; Healthcare transition stimulus package to bridge the transition:
    There are 350,000,000 American citizens. There are between 135m and 140m employed people in the U.S.
    (We are going base this on a figure of 140m) 140,000,000 American workers. If each person were given $2,000 to open there own health account the total amount would be 280,000,000,000 (280 billion) – that’s too much.

    Assumption; the average income is $37k. 40% of the workers make over $60k. 40% of the workforce makes under $50k – Assumption; 5,600,000 workers make under $50k
    Assuming there are 5,600,000 American workers that make under $50k. If each person were given $2,000 to open there own health account the total amount would be 11,700,000,000 (11.7 billion) – that seems doable.

    Another idea; It is possible to give the 12,500,000 lowest paid workers $2,000 each for healthcare ins. – the total would be $25b. Can America afford that?
    If some sort of health accounts were established that required immediate funding we could give the 12.5m lowest wage earners $2,000 each to get them started. This would cost us $25b
    If health insurance premiums were drawn from healthcare accounts and if an individual health ins. Premium was a $200 per month “cost gap” the $2,000 would cover a 10 months cost gap.
    If 3% of wages were deducted from pay checks and the wage was $37k = $1,110 deducted per yr. – $92.50 mo.
    If $90mo. were paid the draw on health accounts would be $110mo. – The $2k health stimulus would last 18mo. If we could do this it would bridge the gap from the current payment procedures to the new plan.

    Al Belardinelli 9/20/09

  • JRDunassigned
  • christine

    Many medical schools were closed and the number of doctors was drastically reduced. The motivation was to close down medical schools that catered to women, minorities and especially homeopathy. We continue to suffer from these changes which were designed to protect physician’s income and promote allopathic medicine over the more natural cures and prevention of homeopathic medicine.
    16.We must remove any obstacles for people seeking holistic and nutritional alternatives to current medical care. We must remove the threat of further regulations pushed by the drug companies now working worldwide to limit these alternatives.

    We are not big pharma’s science project!
    This we most definitely need to correct — more naturopathic and what is considered “alternative” yet is the original healthcare (just like they do with organic foods having to label them “organic”. they need to label their carrots “chemical carrots”, organic are just “carrots”), as well as the chemicals in our skies (chemtrails), chemcials in our food supply, stop the progression of GMO foods that will lead to malnutrition, flouride and other drugs and in our water supply. The government has the obligation to protect the welfare of the people. They can start here instead of working their way into every other industry and certain stop their intrustion into the healthcare industry. Up to now they are drug pushers for big pharma!

  • sean

    Republicans(hypocrites) passed a public option on property insurance just so many years ago, because one of their own congressman was denied money from their insurance company after Katrina.

  • james robinson

    Everytime I hear him talk all I can think is, “the truth will set you free”. I almost want to laugh if it weren’t so sad that such truth is spoken in congress, mostly likely understood by most as common sense, and not followed. This is because most people there consciously or subconsciously know of the power obstructing such reform. But he is the voice that most reformers in goverment are listening too. It was heartening today to watch the financial committee today. They discussed HR 1207 today in congress. Most of the politicians seemed to be leaning to Dr. Paul for help or finally asking the right questions to the fed lawyer to inform themselves. The only one who looked perturbed was Barney Frank (besides the fed lawyer) because it wasn’t more about him and his own “insightful wisdom”. Barney Frank seems more worried about his own self image rather than doing the rigt thing.

    • Lindsey

      James R. Jesus Christ is the truth and he will set you free! Ron Paul is a disciple of his and he is also speaking the truth! I like your analysis of the whole hearing and I agree with you 100%.

  • Tracy

    They are going to RAM this healthcare bill through…how can we stop this?