Monday, August 03, 2009

ObamaCare Should Give up this Savings Fallacy

I think the ObamaCare supporters should give up this line of defense because it makes no sense.

The White House stands by its claims. Its allies claim that CBO forecasts, for instance, don't reflect potential future cost savings that might be expected from the prevention of illness achieved from wider health care coverage.

I think they need to understand that health insurance and health care are two totally different things. When more people sign up for a service that didn't have it before it consumes more of that service. You are increasing the demand side without decreasing the supply side.

Also I'm not convinced that if everyone had health insurance they will all rush out to the doctor. The only way they could get these savings is by the government forcing mandatory checkups. If this money instead went to free or tax subsidized mini clinics then I can see it making a dent. However, obesity will still be rampant and no amount of health insurance will magically cure that.

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