Remember New Math? We’ve been seeing the New Economics, and now with the Senate’s proposed $849 billion dollar bill (which will kill Flex-plans & HSAs but doesn’t touch tort reform), we’re about to be introduced to the New HealthCare Economics. And Coming Soon: the new economics of Alternative Health.
The past has the seeds of the future, so looking at how government handled 2009’s first nearly trillion dollar social engineering project is instructive. The Great Recession and our economic problems began as people financed and spent more than they had on homes and toys, and so home prices cratered with deleveraging of devalued risk free loans. The $787 billion The Economic Stimulus Act was supposed to put money out in buyers hands and create jobs. However, Wall Street Journal (11/19/2009) reports a staggering exaggeration of numbers of jobs created.
DATAPOINTS: An $890. shoe order for 9 pairs of boots from Moore’s shoes was credited by White House’s recovery.gov with creating nine new jobs. A $540,071 Alabama Housing Authority grant was credited with creating 7,280 new jobs, but Birmingham News reported only 14 were created. I see people focused on paying off debt, not buying new toys, let alone moving up in their home.
In my opinion, little of the stimulus will help the long-term economy ( which will eventually improve despite the politicians) but it will make radical changes in our society. The administration’s target is national health insurance. Whether it’s national Medi-Gov or a public option plan, higher premiums/taxes, coverage restrictions, limits and waits will result.Washington included more than $150 billion for health care in the stimulus package, including $21 billion will go to modernize and computerize the national health care technology, but this will merely be s a “down-payment” on putting $50 billion into health care tech. Sounds great…but ask ANYONE in tech…it always costs way more than you budgeted…and half of corporate new tech programs never get implemented because of the complexity and cost overruns. And according to the CBO, and savings will be “overshadowed” by added government costs.
DATAPOINT: This weeks rejection of long standing breast cancer screenings was not due to any clinical review—it was a cost benefit review. Less young women have the problem, so don’t bother screening. And women over 75 will likely pass on from something else sooner rather than later, so again, it’s not worth it to screen them. A Breast Cancer Preview, Wall Street Journal (11/19/2009)
People are being trained to expect government insurance to pay for care, but their experience will increasingly be that many things OF VALUE have to be paid for out of pocket. President Obama told us we will have to take greater fiscal responsibility, but the opportunity is as people realize they are being forced to take greater personal responsibilty for their physical health as well.
Dr Weiniger’s Suggestions for Thriving in the New HealthCare
My prediction- Insurance will cover crisis, and people will get used to paying for more care out of pocket.
As boomers age they will do what they can to age well.
Position your practice towards best serving people who can and want to invest in wellness.
Communicate in concepts with potential “virality”—that people can understand and have others agree with without your charisma.
What’s the best way to reposition a chiropractic or other bio-mechanical practice from pain towards what is coming?
