Tuesday, July 13, 2010

Deficit Commission Can Gut Health Care Reform

Deficit Commission co-chair Alan Simpson told the National Governors Association (NGA) that the new health care bill is on the table, i.e. within the their purview.

They discussed Medicaid and how states can save money. The federal government foots the bill for nearly 2/3 the cost of covering the poor, while states pick up roughly 1/3. President Obama's health reform has Medicaid expanding rapidly with Uncle Sam picking up 100% of the cost of new enrollees.

Private equity underwriters (PEU's) shop for Medicaid insurance contractors. Seeing 30% returns in health care, PEU's bought safety net hospitals as PPACA passed.

I’ve questioned how a tapped out government can keep PPACA's commitments, which don’t begin in earnest until 2014. The Deficit Commission’s recommendations start in 2012. They present their work December 1. Congress committed to an up or down vote on recommendations with 14 supporters (of 18 commission members).

Did I mention co-chair Erskine Bowles' PEU job with Carousel Capital or his goal to grow another fortune? That's in the mix.

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