I listened to President Obama’s speech on Wednesday night. He certainly touched on many key areas needing reform and several of his ideas are excellent and need implementation. As the President himself noted, his speech lacked details. This is like buying a house, no more like buying a whole city, and not reading the financing agreement ot the inspections. THE DETAILS, THE DEVIL IS IN THE DETAILS.

I want to stress that I am not a person that wants to defeat reform. The system needs reform. I was thinking about some of his statements and like listening to the pitchman I know I heard the sizzle but I want to see the steak.

# 1 – no pre-existing conditions – great idea but it raises the cost

#2 – no recissions or taking policies away from insureds – inflationary trend

#3 – strict limits on out of pocket expenses – inflationary

#4 – better coverage on preventive tests – in my State we already have this provision but it sounds like it will raise premiums

I felt like it was Christmas and we were all opening presents. Everyone is happy. Now it is a few weeks later and the bills arrive and across the country I hear people saying “What was I thinking?”

After describing better plans that by definition will have to cost more, he claims we can drop prices by 20%. Insurance Companies claim 1% of premiums go to profits. Let’s assume they are lying. I am having trouble figuring out how prices can just drop 20% on a product with better benefits. It reminds me of my generation when we just flipantly thought we could raise our children better than our parents did. There was no reason for this kind of thinking other than immature misplaced self-confidence.

Other points of confusion were the statements that only 5% of the people would use the government plan but the plan would be 20% cheaper by lowering executive compensations and profits. If there is a product that is 20% cheaper, more than 5% of the people are buying it.

After the powerfully emotional ending of his talk, everything would be better, $900 billion would be paid for because it was less than the war in Iraq, the cost would not increase the deficit, savings would come from better systems of administration and we had to stop arguing about this and just pass the bill (which of the 4 or 5 bills was not mentioned).

I was once told that I could get a mortgage for 1% with no documentation and increase my loan to create cash for myself while actually lowering my payment. Who wouldn’t do that? Last night I felt I was being offered the same deal.

We are desperate for improvements in this system but as much as I hate to drag this on, can I please read the details on the new improved 1% mortgage we are being offered?

Scroll to Top