Thursday, August 16, 2012

Medicare and Left Wing Economists

Economics is not a science, it is a form of political speech. I have spent the last four years trying to justify it. Astrology has more basis in reality than macroeconomics. In my opinion, one of the mouths of the movement on the left states:

...... Affordable Care Act cuts payments to Medicare providers by $716 billion in total over the next ten years and redirects the money to cover seniors' prescription drugs, public health, and to pay for coverage for the currently uninsured. Ryan's plan cuts payments to Medicare providers by $716 billion in total over the next ten years, uses the savings to fund tax cuts for rich, and then cuts payments to Medicare beneficiaries by $3 trillion in years 11 through 20. 

Not quite, in fact not even close.

If you spent a modicum of time dealing with facts and numbers, not something these folks seem to do, one would see the current Administration's plan would drive Medicare reimbursements to the level of Medicaid. That means no physician could afford to treat the patient, they would lose money on every one, not that they make anything on the current reimbursements.

In fact Medicare and Medicaid created the bizarre markets we see in Health Care all by themselves! In fact the Ryan proposal may really allow markets and market prices to function. One must look a bit more but what is clear is that a $716B cut, reallocating the funds elsewhere, will result in a reduction of care, not of price.

The real problem is we allow as a society these people to teach in our state funded schools. Perhaps that is why California is a disaster!