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Although there are still legislative procedures that need to be completed, and several years before the full health care plan is implemented we now know that health care will be changing in a substantial way. It will be months and indeed years before the full effects of this legislation are more clearly understood, but there are some enduring principles that can be considered even now. One such principle that needs to be addressed is supply and demand.

The current supply of healthcare, consisting of elements such as doctors, hospitals, and nurses, is based on the demand created by the current number of individuals with access to health care. President Obama has stated that the legislation will cover 32 million more Americans, so that 95% of American’s are covered. By making healthcare more affordable for people who could not afford it before, the demand¹ for healthcare goes up. When demand for a good increases, all other factors constant, the price of that good will rise. However, because of the very price controls that enable more people to access the health care system, the price of healthcare cannot rise to meet the increase in demand. Unless the government has a plan to increase the number of hospitals, doctors, nurses, etc, at a pace that meets the demand caused by 32 million new patients entering the system, there will be long lines, and shortages, and in all likelihood, the government will step in and begin rationing care.

Legal mandating the price of a good or service does nothing to increase the amount of that good or service. What provisions in the plan work to increase the amount of available medical care? Where will the doctors, hospitals, nurses, and everything that supports the practice of medicine come from and who will pay for it?

1. demand in the sense of capable buyers, not people who want healthcare [↩]

I am subscribed to President Obama’s Twitter feed, and his office recently made the following tweet: “Lots of disinformation on health insurance reform out there. Learn/share the facts: http://bit.ly/191Bzz #hc09.”  So agreeing that I should learn and share the facts, I decided to find out for myself what the facts are.  In addition to some telling Gallup Polls; an associate of mine pointed me towards an AP article: “FACT CHECK: Obama’s health care claims adrift?”  It seems as though President Obama is carefully sifting his words and relating information that is somewhat true, but fails to tell the whole story.

Most Americans are lukewarm at best regarding Obama’s healthcare reform, according to a recent Gallup poll: “Americans on Healthcare Reform: Top 10 Takeaways.”  Of note: 84% of adult American’s have health insurance, and most are satisfied with it; additionally, there is “No Groundswell of Support for Healthcare Reform.”  We should focus on the 16% without health insurance, and not break a system that is working for 84%.

So what are some alternatives to ensuring that all American’s have health insurance? In the Wall Street Journal, Arthur B. Laffer outlines a viable alternative to “Obamacare,” “How to Fix the Health-Care ‘Wedge’.”

Congress needs to focus on reform that promotes what Americans want most: immediate, measurable ways to make health care more accessible and affordable without jeopardizing quality, individual choice, or personalized care.

No American wants the Government to make their healthcare decisions for them, the elderly do not want to be refused expensive treatments because they are “too old,” we should reform healthcare, but Obama’s plan will leave us worse off.