We think you're near Los Angeles

Currently in Los Angeles

Location: Los Angeles Current temperature: 45°F: Current condition: Clear See Extended Forecast

Obama's math faulty, health care cost doesn't add up

Today, the President continued his nationalized health care tour in Belgrade, MT. During the question and answer session of his town hall event, Randy Rathie from Montana (a proud NRA member), asked the President a question regarding his plan to pay for his health care agenda. The President responded by saying:

 

I can’t cover another 46 million people for free…we will have to get the money from somewhere…overall this bill will cost, let’s say it will cost $800 billion to $900 billion, that’s a lot of money…that’s over 10 years though, alright? So that’s about $90 billion, $80 billion to $90 billion a year.

The Department of Veterans Affairs (DVA) is the government’s second largest government agency, second only to the Department of Defense. The Veterans Health Administration (VHA), a government controlled single-payer system, which the President is a proponent of, has a 2009 annual budget of $44.5 billion, while providing healthcare to 7.85 million patients. As large as it is, it pales in comparison to the population of the United States, which last estimates reported to be over 308 million. Do the math. $44.5 billion divided by 7.85 billion patients equates to $5,669 per patient, per year. Can the private sector compete with those numbers?

A larger problem arises based on President Obama’s statement today. The president claims that he can cover an additional 46 million people on a budget of $80 to $90 billion dollars a year (which we do not have). Do the math. That equates to $1,739 to $1,956 per person. These are real numbers, they do not lie.  This does not take into account the millions of people that will be thrust into the system for a variety of reasons, and the cost to insure them..

To put this into perspective, the VA spends half that amount ($44.5 billion) to cover only 7.85 million people, yet the President is raising the VA’s budget in 2010 to $52.5 billion, a 10% increase. By comparison, his claims do not make sense. A long standing government controlled health care system operates on a budget that equates to $5,669 per person, yet they need a raise to increase the quality of care, while the president claims he can operate the same type of government controlled health care system, operating on a budget that equates to $1,739 to $1,956 per person, per year.

Health care economics ensures that the more people you have in a system, the lower the cost per person. That is understandable. But thinking the cost would be reduced by 64% (the difference between the VHA cost per person, and Obama’s health care plan cost per person) defies economic logic, it just doesn’t work.

But let’s say, for arguments sake, that the president is right and that his plan will only cost up to $1,956 per person. If this is true, then:

  1. Why can’t the government run the VHA on a budget that operates at a cost per person of $1,956 instead of a cost per person of $5,669 that the VHA operates on today?
  2. What kind of care would we get with a cost per person of $1,956, while the VHA has a record of less than adequate quality of care with a cost of $5,669 per person? (click here for the HIV and Hepatitis exposure investgation). Who would be succeptible to coverage denial and rationing to keep the cost so low?
  3. How would the private sector be able to compete against a cost per person of $1,956?

If the President is right, then he has a lot of explaining to do. If the President is wrong, he has a lot of explaining to do.
 

Care to explain Mr. President?
 

Advertisement

By

Dallas Veterans Administration Examiner

Chet Nichols is a disabled veteran of the U.S. Air Force and spent 5 years working in various appointments within the Department of Veterans...

Comments

  • Pat Smith 2 years ago
    Report Abuse

    Seclusion and restraint are consider last measures in most if not all inpatient facilities, so this data acts as a “canary in the coalmine” to express the stress of under-management or under-staffing a facility is experiencing.
    Highlights
    Seclusion is when a patient of the medical facility is locked in a room alone. We assume “patient days” equal 24 hours.

    The Portland Veterans Administration Medical Center (AKA “The Flight Deck”) shows the highest figures for seclusion occurrences divided by patient days. The VA’s numbers are FAR higher than other similar facilities, and the VA has failed to submit data for the 2nd, 3rd, and 4th quarters on restraint and seclusion to the state, as we understand it, which is proscribed by law.

    VA 1st quarter - 67 seclusions over 1620 patient days for 41.4 seclusions per 1000 patient days.
    mentalhealthportland dot org/?p=1437
    - published March 2009

  • Pat Smith 2 years ago
    Report Abuse

    President Obama also stated there in Montana that the stimulus funding was beginning to provide employment fixing roads, parks etc… & the work would be done by LOCAL BUSINESSES. The unemployment rate is almost double for veterans compared to a much higher population of unemployed civilians. Out of the 47 million uninsured in America, 23 million are illegal border jumper alien’s. I live in the sanctuary state of Pa. & illegal’s are doing much better than Veterans. I believe when we see a bunch of employed illegal’s we should be allowed to legally shoot them all. Freedom is not free.

    Another thing Obama needs to explain because this below is the VA nationwide;

    For such a small population of Veterans (8 million using VA medical care) why does the whole VA medical system hold the record for Hospital Seclusion and Restraint Occurrences?

  • Chet 2 years ago
    Report Abuse

    Thanks for the information Pat! You know, the VA is this country's only true model of a full government run health care system. People keep talking about Medicare, yet Medicare is only insurance based. It does not "employee" health care practices. Be very wary of where this country is going, with regard to health care if Obama's gets this bill passed. Take an ear to what veterans and veterans agencies are trying to accomplish by having provisions in the House and Senate bills that would exempt them from the provisions of these bills. Even they know, as bad as the VHA system is, it will be a lot worse under "Obamacare". The fact that veterans are trying desperately to have these protections, speaks volumes!!!

  • walrus 2 years ago
    Report Abuse

    apples and oranges...veterans are are a high cost medical grouping...compare 100,000 veterans (prosthetics, multiple surgeries, therapies, heavy psychiatric costs, etc.) to 100,000 in the general population and that $5,669 per patient DVA costs looks like a very well run program...at those rates for a high cost medical group, $1,956 per patient for the general population seems reachable.

  • Stan 2 years ago
    Report Abuse

    7.85 million veterans get all their health care from the VA? That sounds extremely high to me.

  • Chet 2 years ago
    Report Abuse

    Stan,
    If you follow the link abave "$44.5 billion, while providing healthcare to 7.85 million patients", a PDF will open up, right from the DVA's website, specifically shows 7.84 (that was at the end od 2008, it is 7.85 now), you will see that is actually how many are enrolled in the VA health care system.

    A lot, I know!

  • Ms 2 years ago
    Report Abuse

    It is President Obama not Obama. Give him the respect as all the other president's. He is the president of the US not your neighbor.

  • Teri 2 years ago
    Report Abuse

    Last time I checked, there was not a law that says you have address him as such. maybe you should tell MSNBC, ABC, CBS, Associate Press, etc. the same thing. This is very common. Check the AP article on the MSNBC website titled "Man with assault rifle attends Obama protest". Are you going to complain to the AP for something that has been in practice for years. Did you complain when they addressed the former POTUS as "Bush"?

    Typical liberal...you complain about the things the right does, but give a pass and excuss the left for the same thinks. Look at all the "mispoke" claims that are out thier lately for Obama and his administration. That would not be given for others like Palin.

    Go eat grow, this health care garbage is dead. Maybe now, real reform can take place.

  • Rob 2 years ago
    Report Abuse

    Hey, Go to a VA facility moron and look around, most of these people have serious problems that was caused by serving our country. Of course the costs are going to be high, they are missing feet, arms, legs, eyes, paralized, cancer from agent orange, serious mental illnesses, and the list goes on. The general public are not as sick as this group of people and the cost for caring would be lower. Not everyone goes to the doctors.

  • Chet 2 years ago
    Report Abuse

    Rob,

    Apparently you did not read my bio. And, for your information, less than 7 percent of those who receive care at VA Medical Centers are considered "seriously wounded" and require extensive care.

  • Chet 2 years ago
    Report Abuse

    Also, only approximately 913 of the 3.03 million veterans receiving disability compensation are amputees. Of course, these are OEF/OIF veterans (those who served after 9/11). Granted, that does not include the veterans who served before then, but you get the picture.

  • Chet 2 years ago
    Report Abuse

    Also, only approximately 913 of the 3.03 million veterans receiving disability compensation are amputees. Of course, these are OEF/OIF veterans (those who served after 9/11). Granted, that does not include the veterans who served before then, but you get the picture.

Add a new comment

Join the conversation! Log in here or create a new account if you've never registered before.

Got something to say?

Examiner.com is looking for writers, photographers, and videographers to join the fastest growing group of local insiders. If you are interested in growing your online rep apply to be an Examiner today!

Don't miss...