Yesterday Congress approved a very big piece of legislation: the regulatory overhaul of our countries health systems. The key points of the new legislation are:
- Requiring most Americans to have health insurance or pay a penalty
- Add 16 million people to Medicaid
- Subsidize low & middle income private health care coverage
- The bill will provide 32 million people with health coverage, but leave out 23 million more
- Insurers must provide coverage to old & sick people (effectively forcing young & healthy people to pay for the older peoples care)
- Abortions will not be paid for
- Prescription drugs will receive additional trademark protection from generics
Who are the biggest beneficiaries of healthcare reform?
- Low to middle income people with regular jobs (self employed & entrepreneurs aren’t helped)
- Insurance companies: they are guaranteed millions of new customers by law & spent $100 million lobbying to push through this law
- American Medical Association: this giant trade union just got guaranteed pay for its already very highly priced workers
- Prescription drug companies: their patent period has been extended… meaning they get to make billions more dollars off keeping prices high. They also have had their anticompetitive deals with generic drug companies continued (the FTC has opposed these deals where prescription companies pay generic companies not to compete).
- Government bureaucrats who will find their organizations growing vastly to support all the additional regulations
- Hospital organizations which now will receive payment for almost all patients
Who is most hurt by the new healthcare reform?
- Generic drug companies. They will be unable to bring their low-priced drugs to market to compete with the expensive big boys.
- Middle to upper income people who will pay for the vast majority of low income people’s health care.
- Young & healthy people who will now be forced to pay extra to cover the old & sick.
- Women in need of abortions will get no help.
- Taxpayers who will now see the national deficit balloon further (Congressional budget office doesn’t take into account the first four years of costs)
- The free market which now sees even more regulation & less individual choice & freedom.
- The 23 million who don’t get health insurance, including illegal immigrants.
- Self employed workers who must pay an extra tax on health insurance premiums.