Yeah, About Those Lower Healthcare Costs

The cornerstone of the Dems' Obamacare scam is the tired old line about how it will reduce costs, increase access and put a unicorn in everyone's front yard. Well, here is an example of what happens when the government decides to pick winners and losers, and the loser in most cases winds up being the citizens. Now this is not a direct result of Obamacare, but rather an example of what happens when there is too much over-regulation from the federal government. By making this drug the exclusive property of one company--who I am sure if somebody checks some campaign finance records, will find that somewhere they made some good friends in the administration--they have now made it impractical and unaffordable for most people.

However, the FDA is empowered to monitor only the safety and effectiveness of drugs; it does not have the power to control how much KV Pharmaceutical charges for the compound. And KV Pharmaceutical has now announced that a drug compound that has typically cost $10 to $20 an injection will now cost $1,500 an injection. Over the course of a pregnancy, treatment that once cost as much as $400 will now cost $30,000.

In this case, a drug made in various ways was pulled back and forced to comply with a set standard and the contract was awarded to one company. The results are precisely what would be expected when you have only one source for a product. I did not see anything noted citing any ill effects from the other compounds, and since doctors were using them I could assume there weren't. So why did the FDA feel it was necessary to make KV Pharmaceutical the winner? Like they say, follow the money.

I differ with the writer of this article only in the last line of his piece.

In most other countries, KV Pharmaceutical would never be allowed to get away with such a thing.

The implied solution in his opinion is to have the government punish the very company they set up to be a monopoly. Wrong. The solution is to allow the free markets to once again work. Regulate the drug as far as safety, but get the hell out of the way as far as deciding how it gets into the hands of the consumer.

Hmmm: Obama Suddenly Willing to Give States 'Flexibility' to Opt Out of Individual Mandate

Never mind the fact that Obamacare's individual mandate was ruled unconstitutional several weeks ago by not one but two federal district court judges. That hasn't stopped the administration from proceeding apace with implementing the law, in clear contempt of court. Appeals are for suckers, anyway. Why bother, right?

But wait! King Obama is now generously considering allowing states to have the 'flexibility' to opt out of Obamacare's bipartisanly loathed individual mandate. The only catch: They must hop on the fast track to single-payer, the Socialist Holy Grail that Obama wanted all along but never had the votes in Congress to pass, despite huge Democrat supermajorities in both Houses.

Oh, goodie.

Seeking to appease disgruntled governors, President Obama announced Monday that he supported amending the 2010 health care law to allow states to opt out of its most burdensome requirements three years earlier than currently permitted.

In remarks to the National Governors Association, Mr. Obama said he backed legislation that would enable states to request federal permission to withdraw from the law’s mandates in 2014 rather than in 2017 as long as they could prove that they could find other ways to cover as many people as the original law would and at the same cost. The earlier date is when many of the act’s central provisions take effect, including requirements that most individuals obtain health insurance and that employers of a certain size offer coverage to workers or pay a penalty.

“I think that’s a reasonable proposal; I support it,” Mr. Obama told the governors, who were gathered in the State Dining Room of the White House.

“It will give you flexibility more quickly while still guaranteeing the American people reform.”

The announcement is the first time Mr. Obama has called for changing a central component of his signature health care law, although he has backed removing a specific tax provision that both parties regard as onerous on business. The shift comes as the law is under fierce attack in the courts and from Republicans on Capitol Hill and in statehouses around the country.

The bipartisan amendment that Mr. Obama is now embracing was first proposed in November, eight months after enactment of the Affordable Care Act, by Senators Ron Wyden, Democrat of Oregon, and Scott Brown, Republican of Massachusetts. Senator Mary L. Landrieu of Louisiana, a Democrat, is now a co-sponsor.

Quick side note to Scott Brown: I'd like my stinkin' twenty bucks back now, Senator. With interest.

Continuing...

The legislation would allow states to opt out earlier from various requirements if they could demonstrate that other methods would allow them to cover as many people, with insurance that is as comprehensive and affordable, as provided by the new law. The changes also must not increase the federal deficit.

Well, of course - Obama is a real stickler when it comes to the deficit.

h/t: Weasel Zippers. Cross-posted.

UPDATE: Ack, the dreaded inadvertent double-post. Oh, well. Does JAG's post feature a well-placed Snobby Obama photo?

Didn't think so.

The Death of Private Health Insurance

Well, Nancy said they would have to sign it to find out what is in it and now the various newly-minted government administrative agencies are spewing forth their rules and regulations. The bottom line is unless something drastic happens soon you will be witness to the collapse of the private health insurance industry.

New rules have come out dictating how much insurance companies can spend on administrative costs; you know, things like payroll, utilities, and leasing costs.

The healthcare law requires large group health plans to allocate at least 85 cents per premium dollar to medical care, not administrative costs or profit. Plans for individuals or small groups must spend 80 cents per dollar.

If plans do not spend at least that much on care, policy holders get a rebate. HHS said Monday up to 9 million Americans could be eligible for up to $1.4 billion in rebates starting in 2012.

Sounds reasonable and high-minded, doesn't it? Would it surprise you to learn that most charities have administrative costs that are in the 30% range?

This will give you the percentage the charity spends on administration and fund raising. The Better Business Bureau suggests that this percentage should be under 35%. The federal government's charity drive (the Combined Federal Campaign) wants it to be under 25% (though it will allow charities to participate in the CFC with higher expenses as long as they submit a plan for lowering these expenses).

Wait, it gets better. Insurance companies by federal law must have money set aside in the event of a catastrophic event. This money is referred to as a cash reserve. The purpose of this is to ensure that an insurance company has the necessary funds on hand to pay out to all members in the event of some crisis like hurricane Katrina or the recent Gulf Oil spill. Care to guess how much money must be in this reserve?

Generally speaking, life insurance companies must keep reserves in stable investments, for example in cash, or in government bonds (or bond-like investments). This ensures that the reserves are sufficiently protected from loss. While there are usually no specific investment recommendations, insurance companies are generally encouraged to invest in very conservative investments for their cash reserves.

State Requirements

States have individual requirements. For example, in New York, life insurance companies must separate their general account from their sub-account and treat each one differently. The general account is used for fixed investments for life and annuity contracts. The variable sub-account is used for variable life and annuity products.

Mathematical Formula

States will also use a mathematical formula to calculate the reserve requirements of life insurance companies based on the assets that they hold, and a state defined reserve minimum. Any life insurance company that does not meet the state minimum must then sell assets or raise capital to meet the reserve minimum.

The current percentage is 15% of premiums. Now anybody with a 6th grade education can add 85 and 15 and come up with the correct answer. Doesn't leave anything for the company, does it?

I am sure some financial bean counters can set me straight, but from the inside looking out all I can say is I know what type of business model the company I work for is shifting to.

It is no wonder Nancy can gloat. She won, and unless this monstrosity is repealed the rest of us have lost. Of course, with all of the freshly unemployed who formerly used to work for health insurance companies that will be flooding on to the rolls, I'm sure this will work out just great for them.

Home Depot Co-Founder Says No To Government Healthcare

Bernie Marcus is one of the co founders of Home Depot, along with Arthur Blank, and his life's story is the embodiment of the American dream. He is also one helluva humanitarian, something which those on the left would scoff at since he part of the evil rich, but without people like him things like this would not be possible.

Bernie Marcus and health care are synonymous. With donations of more than $44 million for the Marcus Autism Center, and an added $25 million to fund Autism Speaks.

He's added almost $18 million to support the Shepherd Center and major programs to rehabilitate returning military personnel. Almost $4 million to the CDC Foundation, and $20 million to enhance the Trauma Center at Grady Hospital.

Add to that the fact that he almost single-handedly funded the Georgia Aquarium with a donation of $200 million and you don't have the portrait of some black-hearted corporate thug.

Well, Bernie ain't exactly happy about government control of health care.

But when it comes to the government's health care program, Marcus said, "I see a very bleak future for health care in the United States, if we pass government controlled health care. The Congress, the federal workers do not participate. This is for you and for me. I mean come on, give me a break will you, please."

Marcus says the real need is to curb fraud and limit litigation to bring costs into line.

"I don't support the national health care program. I think it's a disaster. I think we should fight it to the death," he said.

Who would you believe, somebody who came from nothing and accomplished so much and knows the business world inside and out, or a bunch of stuffed shirts who for the most part can only claim drawing a taxpayer paycheck for 40 years as an accomplishment?

A Tale Of Two Healthcare Forums

Today in Atlanta we had the unique experience of two different gatherings revolving around the current debate on the proposed healthcare legislation. One was a townhall/forum hosted by that irascible scamp Rep. David Scott (D-GA) in Jonesboro at a high school and the other was a rally held in downtown Atlanta at Centennial Olympic Park.

The story can best be told in pictures. By now everyone is aware of the allegations made by the left of those who oppose the legislation are somehow nothing more then stooges and pawns of the some greater conspiracy and what they call "astroturf" protestors, meaning they aren't real but rather on the payroll of somebody.

Well, let's see which side dresses alike and shows up with pre printed slickly produced signs and which group just sort of shows up.













This one puts it in perfect perpective.

About 3000 folks showed up downtown for the rally against Obamacare and Mr. Scott's forum played to a full house also.

The photos were courtesy of the Atlanta Journal Constitution and for more pictures go here.

Two metro Atlanta representatives, Hank Johnson and David Scott, solidly support the Obama, Pelosi, Reid plan and as proof that they are not really representing their constituents in a poll recently conducted by one of our local TV stations, 11 Alive, the results show 56% oppose and only 34% are in favor of the current legislation, but neither of these gentlemen give two flips about their constituents, only about staying in the good graces of Madame Pelosi. David Scott even has the nerve to call himself a Blue Dog. They ought to kick him out if he is an example of a Blue Dog Democrat, since he hasn't got a fiscally conservative bone in his body.

African American Congressman Faces Angry Southern KKK Crowd at Healthcare Townhall

That is the headline the liberal media would love to run with this morning, and were probably anticipating as Georgia congressman Hank Johnson (GA-13) held his healthcare townhall last night in a suburb of Atlanta. Instead over 2,000 people attended and engaged the congressmaen and other members of the panel that were assembled in polite and probing questions regarding the various healthcare bills floating around the halls of the capitol building.

Civil, well-mannered, asking smart questions – that may not sound like one of these town hall meetings on health care reform.
But the nearly 2,000 people who gathered Monday night at George Perimeter College in Clarkston offered a lesson to the rest of the nation on how civil discourse doesn’t have to spiral into civil disobedience.

Our local rag the Atlanta Journal Constitution (AJC), even had to concede that the meeting went well, but they weren't ready to report that most people in attendance expressed displeasure at the proposed government takeover of healthcare in this country. In fact in reading the article you get a sense that most in attendance were in favor. This is a far different perpective then what was shown on the local news channels last night in which at least one reporter on the scene estimated that those who oppose the plan outnumbered those in favor by a margin of 5 or 6 to 1.
So while Yankee boy John Dingell from MI likes to compare those who oppose the government takeover to members of the KKK, we southerners will continue to display our usual southern hospitality and manners. Something those on the left could take some lessons from.

Cash For Clunkers In The Crapper

Well that didn't take long. A program to buy back old energy inefficient vehicles has apparently run out of money 4 days into a program that was supposed to last until October. You got to love government efficiency.

Transportation Department officials called lawmakers' offices earlier Thursday to alert them of plans to suspend the program as early as Friday. But a White House official said later the program had not been suspended and officials there were assessing their options.

These folks want to control your healthcare. This administration is posting one failure after another. The stimulus package that didn't stimulate, a cap and trade policy that right now is capped in congress, and an attempt at card check that got checked at the door.

This morning Libertarian Party former presidential candidate, Wayne Allyn Root, was participating on a panel discussion on Fox and Friends talking about the near beer BS session last night and he brought up the case of the Mustang Ranch in Nevada.

The Mustang Ranch was a highly successful brothel in Nevada, that is until the owner got caught for not paying taxes, and since he wasn't an elected official, got sent to jail. The government took over control of the enterprise and within a year the ranch was out of business. How bad do you have to be to go bankrupt running a whorehouse??

Anyway there are reports all over the place of dealers not being able to get reimbursed from the government for car deals they have already made, that had been approved and now with word that the entire program may be out of money I hope y'all are enjoying all this hope and the change in your pocket.

On A Roll

It's not a trainwreck -- yet, but The Messiah's approval numbers continue their trip South.

Support for the unholy trinity's government healthcare program is evaporating as well.

Not exactly the kind of change he had in mind.