Any large scale organization will have administrative costs. Their absolute costs tend to escalate the larger the organization is. Look at the difference between the administrative costs of your own household versus those of your employer. In fact, the biggest organization in the US, the complicated complex of our federal, state, and local governments is about as laden with administrators and their costs as could be.
Anyone who has worked at Wal-Mart must marvel at how it is able to keep hundreds of employees at any one store administrated, updated, and trained by one HR specialist and an assistant. Truly outstanding and amazing when you consider the millions of people who run through the organization annually. Then consider the billions of tons of product these employees administrate from one end of the company to the other, coast to coast, and around the world, 24-hours a day. Now consider the DOD and how billions are unaccountable and lost forever.
Could Wal-Mart lose billions of tons of product down black holes and survive? On an administrative basis, government cannot compare because it has no genuine accountability to taxpayers, customers, investors, or users.
So, how could it be that if government is traditionally rife with inefficiencies, old computers, and lousy workers could it reduce the administrative costs under any circumstances?
It just doesn’t make sense. How could anyone make that claim and stand a chance of not being laughed out of the room?
Whatever the costs of administrating today’s health care, they cannot be used as a pretext for socialized medicine. People are free to spend their money as they see fit and if they want an array of health care options, services, and the like, there will be administrative costs associated with that level of care. It comes with territory in an advanced health care system.
Administrative costs are a non-issue.
In fact, if the government takes over health care, these costs are not the costs borne by private payers, but rather taxpayers, which then would make it an immoral cost-shifting. So, the notion that single-payer, one nation-one toilet health care can save on administrative costs by firing the insurance companies and replacing them with government bureaucrats is sheer Marxist propaganda.
The real costs of administrative issues is the doctor’s time with patients. That’s the real issue. Time and again we hear how government run health care leads to shortages, waiting lines, murderous delays in care, all due to the single-payer inefficiencies and abject neglect of patients. Imagine how much less time with patients a doctor would have under socialism, where he must spread out his time among twice as many patients in long waiting lines with fewer resources to treat them, more controls on costs, and more restrictions on the information and counseling he can provide.
Obama’s doctor of 22 years, David Scheiner, rejects Obamacare, not for a genuine laissez-faire health market, but because he wants government controls all over the health care system. He is a true Marxist, “If I had to say the single one thing which is the worst part of it, is that private insurers continue to be a part of the health scheme.” How is that for being against private enterprise?
One way to solve the administrative costs of the current approach is to have a voluntary uniform policy code with various exceptions, similar to the Uniform Commercial Code which helps parties to a contract resolve disputes not discussed when they signed their contracts.
Where policies agree, there is uniformity. Differences exist on what insurers do not reimburse, which adds administrative costs as medical people try to recoup their expenses. These added administrative costs could be reflected in premiums. In other words, plans that cover less would be more expense administratively. Using the power of sheer voluntary choice, this would tend to make the best policy, the most uniform and the most widely-used because it is the least administratively expensive, i.e., the easiest to use, just the opposite of what is happening under single-payer or the government restricted care of today. Of course, that is only if people are buying administrative services, which they are not.
Just as good money drives out bad under a system that respects property rights, the best plan will tend to drive out lesser plans when people have liberty of contract and ingenuity. If people want more or less health care, they can pay for it to suit their needs. As we know from other products and services, the mass market pays one thing, and exceptions for premiums plans are more expensive. Nothing new there. In fact, quality tends to trickle down to the mass market, and mass market plans will absorb features of premium plans, just as high quality TV’s go mainstream.
We know that socialized medicine would inflame, infect, and kill American leadership in quality health care. That should be where the debate is taking place, and not on the issue of paperwork. Even here we can see how the paperwork issue is an issue of health care quality, even though socialist must side-step the issue of quality directly. Socialism can never win on the issue of quality.
In essence, if the real issue is opening up time with your doctor by addressing administrative costs, how does that square with the overall dilution of a doctor’s time, as it is spread around onto an extra 40 million uninsured? Obama talked about spreading the wealth around. Now he is spreading time-with-your-doctor around. Does Obama have the right to spread either our time or our money around? Who gave him that right? And who must fight to reclaim it?
Government is a wild animal roaming over us with impunity. No one man can stop the government. And the government is smart. It only takes us out only one man at a time. That is why socialism is seductive to many. They think they will not be harmed by socialism, someone else will be first. “My plane will not crash, someone else’s will first. I will not be the first to die under socialized medicine. You will!” That is why the people entertain socialism, the gamble of something for nothing. If the price for socialism was getting stabbed in the eye, who would be a socialist?
Administrative costs are a sub-issue that Obama-lovers claim to address in place of the real issue, time with and access to, the doctor, his care and expertise and treatment, the key measure of quality.
Americans have to decide whether they can live with administrative costs or waiting lines.
Since that is what the debate is coming down to, Obamacare can be toast. It depends on whether Americans have a will to live and whether they will put their will to live above their love for Obama. You never know what Americans will really do under those circumstances. Some Americans do have a propensity from time to time to engage in the hysteria of mass self-sacrifice. Anything is still possible.
We know that people who have a will to live balk at socialized medicine because it threatens their lives. So, why should they surrender to socialists now when socialists talk about paperwork cost-savings, when time with your doctor is the key issue and is doomed to go down under socialism? That’s something for socialists to answer before anyone swallows the poison in their Marxist brew.
Lorenz Kraus © 2009