The Unpaved Road

To see pictures of President Obama joined by leaders of the health-care industry, gives the impression that the health-care industry providers are more than willing to cut the cost on the amount Americans spend on health-care services. It seems that the President has made a huge step in curbing health care cost and that the leaders of the industry voluntarily want to help.

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Barack Obama, President of the United States

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The claim by Mr. Obama and the health care leaders is that $2 trillion will be saved over the next 10 years. The plans states that annual health care spending growth rate will be reduced by 1.5 percent over the next 10 years by lowering drug prices, improving Medicare and Medicaid, and reducing overpayments to private insurers.

But if you scratch through the surface, one wonders how long this will last and just how much savings will incur. Why wonder? There are no set rules or regulations to insure that this plan will be seated.

According to the White House blog, we are traveling down a path of high health-care cost, as mentioned, “But what's brought us all together today is a recognition that we can't continue down the same dangerous road we've been traveling for so many years; that costs are out of control; and that reform is not a luxury that can be postponed, but a necessity that cannot wait.” This part is true, we are on a dangerous road and we’ve been driving it for many years. The new road however, the one that proposes to cut $2 trillion in cost is not yet paved.

This is not the first time the health-care industry has been brought forth to insure America a more cost effective system. The reality is that President Obama's plan offers no real way for the government to enforce these measures and is relying solely on the faith of the industry leaders that claim they want to help Americans save on health cost. As New York Senator Charles E. Schumer told the New York Times, "It does not mitigate the need for a public plan option in our health care reform bill."

During previous administrations, the same initiatives have taken place, only to last a short period and then to fall apart once the health care providers have decided to step back. The voluntary efforts that are put forth usually fall apart after only a few years. This has happened under both the Clinton and Carter administrations.

To be sure that the health-care industry follows through with their renewed plans for lower costs, President Obama needs to push congress to enact regulations on the health-care industry and its costs. This is the only way to prevent the health-care leaders from retracting their word on cost savings for the consumer. After all, lower cost to Americans means lower wages for the health-care leaders.

Let’s not take their word for it once again and fall into the trap of high health care costs and continue down a road that is indeed dangerous. The Administration and Congress need to work with the health-care industry but also set forth strong guidelines and regulations to insure that these costs are brought down.

The President is right, we can’t continue down the same path, but we must build a new road—a paved road—in order to insure our health-care industry is made responsible for their promises.

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