How to Fund Health Care Reform? - Alice Rivlin

Complete video at: http://fora.tv/2009/06/17/Health_Care_Reform_Long-Term_Fiscal_Impact

Economist Alice Rivlin explains why raising taxes is not a sufficient solution to fund health care reform. She suggests finding savings through efficiency improvements in Medicare and setting up some type of trust fund system.

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What are the fiscal risks of health care reform? What can be done to minimize the strain on the federal budget from increasing health care costs? New subsidies for health insurance can only exacerbate the budgetary shortfalls. Hudson Visiting Fellow Hanns Kuttner has prepared a new paper that assesses the long-term fiscal risk from health care reform and the tools available for managing that risk.

Joining Kuttner to discuss his paper -- and other questions on health care reform -- were James C. Capretta, Fellow in the Economics and Ethics Program of the Ethics and Public Policy Center; Alice M. Rivlin, Senior Fellow, Metropolitan Studies, Economic Studies and Greater Washington Research at the Brookings Institution; C. Eugene Steuerle, Vice President of the Peter G. Peterson Foundation; and Paul Van de Water, Senior Fellow, Center on Budget and Policy Priorities. - Hudson Institute

Alice M. Rivlin is a Visiting Professor at the Public Policy Institute of Georgetown University and a Senior Fellow in the Economic Studies program at the Brookings Institution. She is the Director of the Greater Washington Research Program at Brookings. Before returning to Brookings, Ms. Rivlin served as Vice Chair of the Federal Reserve Board from 1996 to 1999. She was Director of the White House Office of Management and Budget from 1994 to 1996, and Deputy Director (1993-94). She also chaired the District of Columbia Financial Management Assistance Authority (1998-2001).

Ms. Rivlin was the founding Director of the Congressional Budget Office (1975-1983). She was director of the Economic Studies Program at Brookings (1983-1987). She also served at the Department of Health, Education and Welfare as Assistant Secretary for Planning and Evaluation (1968-69).

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[MagellansUnderwear]

In the short term, there is a two part solutions for paying for health care reform. Tax the hell out of the wall street criminals who got us into this recession, and legalize marijuana and tax it. Increase taxes on tobacco, tax obviously unhealthy foods (sodas, candy, fast food) to a lesser degree.

[stevenmhughes]

A simple logic check that will likely be obvious to you:

Corporations are owned by investors.

Investors are people who have saved money.

Savers are people who live beneath they're means.

A socialist will sometimes have a difficult time with the implications of this since socialism itself has a natural tendency to exceed it's means.

[converse401]

Yeah, we all know how those trust funds are handled don't we? I don't care if it means raising taxes consecutive years, if that's what it takes, that's what it takes. Provided it is a fair and balanced taxing for all. In the process, we also have to clean up tax codes and stop voting in the "foxes to guard the hen houses" Repeal the disregulations as well. Stop shipping jobs overseas and stop giving corporations incentives to do so. Also, stop oil subsidies.

[stratvic]

If we had the tax credit for paying our own premiums and our coverage was not intermediated by our employers we would have the power to fire insurance provider and like runs on the bank for non payment make short work of disreputable insurance companies.

[stevenmhughes]

I always find it interesting to see how socialists speak of profit. I wonder how many collectivists have considered that they're own paycheque represents a profit? Perhaps they would like to form a not for profit workforce?

[Mastikator]

Subsidizing, bailing out, funding. Call it what you want. It's using taxpayer blood money to pay for goods and services that would either be provided at higher quality and lower cost by the market, or not be provided due to lack of demand.

The military is a beautiful example of throwing vast sums of money in a black hole.

[erkd1]

It was legislation that gained people access to healthcare. So you are saying it can't be removed because it was a promise? Well how about a promise to do the same thing for all people. LOL WTF is wrong with you. And insurance companies deny people healthcare all the time, where are these boycotts? I am done talking with you, I happen to live in a place called reality and its to hard to communicate with you all the way over there in fantasyland.

[stratvic]

The reason you can not remove medicare is not because it is good or efficient or just. You can't remove it because it was promised and people relied on that promise. What you can do is stop digging by making a broken system bigger.

Insurance companies that deny health care in a free market will be boycotted by worried customers similar to a run on the bank. What we don't have is a free market in health care. We have no trade across state lines and distortionary tax credits to name a few.

[erkd1]

Medicare works! Why don't you make a video about ending Medicare and the VA and see how that flies. Even the right wing free market crazies do not attack Medicare because people like it and it does a good job. What will make the sick broke is if they use private insurance and that is if they get coverage at all. Private insurance makes money DENYING healthcare, not SUPPLYING healthcare.

[stratvic]

"Medicare is broke?"

Medicare is an unfunded liability/ ponzi scheme. When the working population stops growing faster than retired it becomes a taxpayer unfunded liability.

"Without insurance people cannot afford healthcare." The function of insurance is to pool risk not reduce the cost.

When 10% of the people pay 50% of the tax you can not afford much of anything. What will you do when they leave or stop bothering to earn?

[erkd1]

Medicare is broke? LOL That's comical. No, Medicare makes healthcare affordable to those that need it. That's the fucking point. Without insurance people cannot afford healthcare. Besides, 1% of the nation own 40% of the wealth, we have the money. Always with taxes its a matter of who you tax, tax the people that have all the money.