Get Liberated ! - not regulated 

Government Health Programs

Federal health insurance programs have a significant effect on the total health care industry which is fast becoming unaffordable to almost everyone except the poor. 

Congress passed legislation in 1965 establishing the Medicare and the Medicaid programs as Title XVIII and Title XIX of the Social Security Act. On July 30, 1965, as part of his 'War On Poverty',  President Lyndon Johnson signed this expansion into law. Said President Johnson, " During your working years, the people of America--you--will contribute through the social security program a small amount each payday for hospital insurance protection. For example, the average worker in 1966 will contribute about $1.50 per month. The employer will contribute a similar amount. And this will provide the funds to pay up to 90 days of hospital care for each illness, plus diagnostic care, and up to 100 home health visits after you are 65. And beginning in 1967, you will also be covered for up to 100 days of care in a skilled nursing home after a period of hospital care.

And under a separate plan, when you are 65--that the Congress originated itself, in its own good judgment--you may be covered for medical and surgical fees whether you are in or out of the hospital. You will pay $3 per month after you are 65 and your Government will contribute an equal amount."

Medicare for the poor aged is an extension of the original Social Security Act and financed much like the Trust Fund. Like the Trust Fund it has no surplus, no savings, no assets, only federal IOUs.

Medicaid expenditures for poor adults and children, financed directly by the treasury, are largely out of control and demand an ever expanding part of government budgets and the economy.

Medicare and Medicaid are administered by the Health Care Financing Administration.Like the Social Security retirement program, both medical programs are flirting with financial catastrophe.   

Trends 1965 - 2000

The United States population increased by about 40% to 280 million.

The value of the dollar decreased. What you could buy for $1 in 1965 would have cost $5.37 in 2000 due to inflation Stated another way, if you had saved $5.37 in 1965 it would have been worth only $1 in 2000. Your savings would have lost more than 80% of  their value. 

During the same period health care expenditures increased from $41 billion to about $1,300 billion. On a per capita basis, it went from $205 to $4637. Health care, as a percent of the Gross Domestic Product, went from 5.2 to 13.3. The U.S. spent $2.0 trillion on health care, or $6,697 per person, in 2005.

Forecast Summary

National health expenditures are projected to reach over $4 trillion in 2015 when it will constitute approximately 20.0 percent of GDP compared to its 2000 level of 13.8 percent.

Yet, what do we get from our politicians while Rome burns? More regulation of the industry and more mandates to include more care and benefits for more people under more circumstances. In other words, the health care industry increasingly resembles universal government health insurance which itself resembles universal government old age insurance - Social Security after which it is modeled. 

Government regulated health care is just another promise that can not come true. The costs are not sustainable. Instead of fewer people with no health insurance, we are left with many more with no health insurance. What is the value of regulating towards financial and health care disaster? Who gets the benefits if more is spent but less can be purchased?  And ultimately, who gets the benefits and who will pay the price when markets are manipulated with government controls?

How can more expensive health care be in the public interest? 

 Whose interests are served instead of the public interest?  






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