No one seems to be writing opinion pieces quite the way I would, so I decided to do it myself.

The name? Taverns are places where one goes to discuss the interesting events and things in the world, so this is my tavern.

I will offer my views on politics, economics, and whatever else strikes my fancy.
I will occasionally publish the entire article from another journal for purposes of causing discussion.

 

Bush's Proposed Drug Plan - More Bush Bait-and-Switch

The LA Times has a good editorial today. They point out that Bush, responding to calls for a drug plan for seniors, has essentially proposed one which will not work.

First, the Drug plan would require seniors to switch to managed care operations run by private insures. The Bush people estimate the 40% of the people on Medicare would switch, but independent surveys indicate that only 1 to 2% would switch. Too many seniors remember the disaster that occurred the last time private insurers offered HMO's through Medicare, then pulled out of the program leaving the seniors without the benefits.

Second, the plan is scheduled to phase in in 2006. The federal government appears to have more revenue predicted them, but this is smoke-and-mirrors. The reason for the apparently more revenue is that many of the tax cuts recently passed are scheduled to phase out at that time. We all know that will never happen.

Then there is the fact that there is no mechanism for controlling drug prices. Medicare is able to negotiate with drug manufacturers for lower prices. Private insurers cannot get the required market clout to do that, so the already over-priced drugs will simply get higher priced.

In short, it takes too long, will be too expensive for existing revenues, and will immediately suffer from cost over-runs. Something this year with cancellation of tax cuts to pay for it would be much better.
posted by Richard at 3:02 PM