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home › monthly mashup › graphiti

Monthly Mashup {graphiti}

Why Is a Public Health Option So Important?

Mon, 02/28/2011 - 20:39 — csmAdmin

This chart from the Government Accountability Office puts the need for a publicly accountable health care system into a clearer perspective. You’ll note that back in 2000 the total percentage of Gross Domestic Product consumed by Social Security, Medicare and Medicaid together was a mere eight percent. Medicare and Medicaid accounted for half of that, or roughly four percent. The projections show a dramatic change in the percentage of GDP taken by these three bedrock national programs – by the year 2080 it is projected that they will consume one fourth of our GDP. That’s a lot of money, and it can slowly choke an economy to death.

So, let’s take a look at this more carefully. First, you’ll note the flat line for Social Security – proof that the system is on a steady course.

But if you look at where the increase occurs you’ll note that nearly all of it comes from increased healthcare costs. In fact, the GAO estimates that health costs will increase four-fold by the time your grandchildren reach retirement age. That huge increase in health care costs is attributable to the profit margin that health providers expect to make as they increase their rates over time. Enormous private profit over enormous public good – that’s not very patriotic.

But imagine if we could lock in 10% of GDP as the price for good social policy?

Well, we can if we allow programs like Medicare and Medicaid to once again negotiate drug prices, so citizens aren’t gouged by private profiteers. There is a point where profit has to take a back seat to common sense national policy. France does it, Germany does it, England and Canada and Spain and a dozen other democracies do it, too. The far-right “super patriots” are always talking about “American exceptionalism” – but when it comes to healthcare America is just the exception to good government.

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