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LAT Misses Facts on Health Costs, Coverage, and Quality

In her August 3rd article entitled “Democrats walk a careful line on health care” LA Times reporter Janet Hook writes that the health care “reform” bill passed by the House Energy and Commerce Committee on July 31st “is designed to expand health coverage for the poor, cut costs, and improve coverage for people who already have insurance.”

A more accurate statement would have been that Democrats are claiming the bill is designed to do those things. The reality, however, is quite different.

Regarding expanded coverage for the poor, the National Institute for Health Care Management Foundation reported last year that one quarter of the nation’s uninsured, around 12 million people, “are eligible for Medicaid and the State Children’s Health Insurance Program (SCHIP) but aren’t enrolled.” This includes 64% of uninsured children. According to the report, there are about 14 million childless adults or parents with incomes below 200% of the federal poverty level who are not eligible for public coverage, but fewer than 5 million of these are below 100% of the federal poverty level.

In other words, reaching the relatively small number of low-income people who are not currently eligible for federal health care assistance does not require the destruction of our health care system as we know it.

Second, the idea that government-run health care will cut costs is belied by reality. Medicare and Medicaid both massively overrun every budget projection ever made about them. When Medicare was begun in 1965-66, it was estimated that the programs cost in 1990 would be $9.1 billion. The actual number turned out to be $67 billion.

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