Healthcare Costs Going Up even During Economic Recession

In the time of recession, people are struggling and trying to just maintain a normal life. Seeing the job loss data does not make anyone happy or does not bring any hope or assurance in the mind of ordinary people. You have perhaps already noticed that the price of oil has decreased substantially in the last one year not only in the US but also in whole world. So, the price of many things has decreased. However, the only thing that is still rising is the cost of healthcare in America. Because of high cost, now, almost 50 million Americans do not have health insurance.

Obama government has taken this issue seriously and they could get the industry on board too. However, there is no sign of hope because there is danger that unless something substantial and effectives steps are taken, the number of uninsured people in this sector may increase to nearly 65 million within 10 years. What is very confusing to me is that during time of economic recession how healthcare cost go up. It shows that there is some problem in this sector and US government needs to address it seriously. A new bill is on the card from the Democratic party but it will not receive support from the industry and the Republicans.

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Healthcare is less Important than Global Warming

One of the perhaps major problem about US economy is that misplaced attention and focus are given in some basic things. Many people, business leaders and political leaders give a lot of importance to healthcare issues. Still millions of people in the country cannot afford to have insurance. Obama has got the private sector with him but I do not think that any significant change will happen in this regard in the next 4 years. I have this kind of idea because the decision makers do not want to accept some real facts. Just look at the fast food and junk food industries. What benefit does a soft drink bring? What benefit does a burgher or pizza bring?

On the other hand, global warming is something that is really affecting the world but many people in the country want to close their eyes. They forget that being healthy means living in a good and clean environment. If the environment gets polluted then it will bring hazard for every American and the financial cost will be huge. So, they must focus on the environment more. If they want to avoid this problem then in future it will become bigger and will bring disaster. More than everything else, environment is directly related to health.

So, instead of arguing about the global warming and climate change, the decision makers should sit to find to minimize the negative impacts.

Can Health Care industry Save $2 Trillion for Obama?

It is big news now in USA that health care industry is going to join US government’s effort to ensure a better form by saving a lot of money. Barack Obama has got the support of almost all the stakeholders of this industry and they have informed him with collective effort, in the next 10 years, $2 trillion will be saved. This news will surely make many people in USA very happy. America may be the richest country on earth but the reality is that nearly 50 million people still do not have health insurance.

We have to wait for the next few days about the detailed plan. It is still not clear how this huge amount of money will be saved. The basic idea is cutting cost and using the resources more efficiently. It is still not clear that what extra ordinary things will be done now that could not be done until now by the same industry.

Health Care: Paul Krugman, Government Bureaucrats and Private Sector

New York Times has an excellent Op-ed by the famous economist Paul Krugman with the title: Harry, Louise and Barack. He has talked about the new proposals of the private industry players about healthcare system in USA. It is needless to say that healthcare is one of the top issues in the country today. President Barack Obama promised that he would carry out some major changes in this sector and he would make things easier for the American ordinary people to have better medical facilities paying less. Of course, it sounds attractive but providing it is a huge challenge for any government.

Paul Krugman has discussed all sides of the coin in the column. He talked about some mistrust that he has about the industry players. He has mentioned that in the past, these big companies created obstacle for people to get better insurance deals. So, he is surprised that now, these companies are trying to do the opposite thing. Naturally, some decision makers are excited and happy that they will not face any big difficulty from the industry in implementing the vision of President Obama about healthcare reforms. Mr. Krugman has also expressed his satisfaction over the matter but at the same time, he has urged the government bureaucrats on one thing:

I would strongly urge the Obama administration to hang tough in the bargaining ahead. In particular, AHIP will surely try to use the good will created by its stance on cost control to kill an important part of health reform: giving Americans the choice of buying into a public insurance plan as an alternative to private insurers. The administration should not give in on this point.

He is right. Obama government should never agree to any proposal that would limit the American people about their medical options.