BEST OF MICHAEL BERRY

July 8, 2008

Asleep

According to the Financial Times today, one of Senator Obama’s major concerns is providing universal health care for all Americans. The presidential candidate’s plan will offer insurance for those 47 million Americans without current coverage. It will cost $110 to $120 billion per year to provide tax credits for low income Americans. It will be paid for by increased income taxes of $50 to $65 billion per year from high income Americans (defined generally as earning over $250K). The New York Times reported last year that Economists Austan Goolsbee (University of Chicago), David Cutler (Harvard) and Stuart Altman (Brandeis) have assisted in planning. Dr. Cutler suggested that by computerizing a US health data base for all Americans ($10 billion per year expenditure for 5 years) the health records of mom and pop will save the rest of the cost of this grandiose scheme. Says Dr. Cutler

"That (computerization) sets you on a path for a fundamental transformation of healthcare."

This is political pandering once again. We see this signature health care issue discussed every four years by parties. It will probably bring votes in for the fine senator. But I know about large data bases and computer solutions to troubling problems. I toiled in the computer industry for many years. Mega-systems never work as intended – and neither will this one.

In an FT article, this AM, Professor Cutler suggested three objectives of Mr. Obama’s plan:

1. "Cover everyone."
2. "Bend the curve on health cost inflation."
3. "Have a public health care system that works."