Beware the Cost of ObamaCare – Grace-Marie Turner, Galen Institute

June 20th, 2011 § 0 comments

Kudos to Grace-Marie Turner of the Galen Institute for the following blog post from last Friday -

From the cost to taxpayers, to the loss of job-based coverage — and jobs! — to the devastating impact on innovation, ObamaCare already is leaving a wake of wreckage as it barrels toward implementation in 2014.

Let’s start with its terribly misguided approach to containing Medicare costs in the law — the Independent Payment Advisory Board (IPAB). At noon today, I will be on Capitol Hill participating in an important briefing on Medicare reform hosted by the American Enterprise Institute. At the briefing, we will release Galen’s latest paper, “Repealing and replacing IPAB with better solutions.”

In the paper, we warn that 15 IPAB technocrats will have unprecedented, and likely unconstitutional, powers to direct hundreds of billions of dollars in Medicare spending. Yet the tools they have are limited to making deeper and deeper reductions in payments. Price controls and centralized government micromanagement never work, and they won’t work any better when decisions are moved out of the political process and handed over to this unelected board.

Congress must instead focus on aligning incentives so providers are forced to compete to offer seniors the best value in health care, which experience with Part D proves will lower costs and provide a path to sustainability for Medicare.

There is and has been for years widespread agreement in the policy community that premium support is the right way to reform Medicare and begin to contain costs, and speakers at the AEI briefing will likely reinforce this. Part D is a successful, working model for premium support, and it is the path forward.

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