Healthcare Reform VS the Obama Administration and the US Economic Reality

What will the historic presidential election mean for US healthcare reform prospects?
Now that the 2008 US presidential election is over we can all breath a collective sign of relief. Just for a second. With selecting the smartest and the most divest people to be in his cabinet we can easy say that the real action is about to start.
While I am a registered Democrat, who obtained a MBA in the Healthcare industry in 2007, my congratulations and kind wishes go to President-Elect Obama.
He is a historic figure but my fear is he is going to get tested by some of the most challenging circumstances both internationally and nationally. The Mumbai Deadly Attack this week showed that there will be a catastrophe that will test Obama's national security experience, so let hope he doesn’t experience a terrorist attack in his first term. As an American citizen and a black young man I want him to do well.

Now what he could should and would actually do about healthcare?
Of course, Obama transition and priorities are just being defined. There are many people lining up to give him advice or get a job in his Administration. The Congressional honchos have been preparing their long wishlists for years. Finally, the economic malaise is the biggest and baddest elephant in the room. How far on the list of priorities can healthcare get and how much can be done?

What COULD Obama Administration do about healthcare?
Theoretically speaking, anything is possible. The new Congress could go ahead and pass Ted Kennedy's plan in the first months. I have no doubt John Conyers will introduce his single payor bill yet again. Individual mandate is the likeliest approach to garner most attention, though the myriad of implementation details could slow it down. One thing is sure, all this stuff will cost a lot of money.

What SHOULD Obama Administration do about healthcare?
My opinion is that Obama needs to confront the REAL problem that links healthcare with the rest of the economy. I am talking about the ticking time bomb called Medicare, which I think should be bailout also. The current financial crisis might seem scary, but we have not seen nothing yet if the deficits end up emptying the US Treasury and bankrupting the US Government. This may sound doubtful, but so did Lehman failure till the very last moment.

What WOULD Obama Administration do about healthcare?
This is another $800 billion Dollar Question! Tackling the deficit issue head on will not be popular but is the right thing to do. In the context of healthcare reform this would mean telling people that they cannot have some of the things they want. Healthcare rationing has, is and will keep happening, whether administered by the government or private insurers. What is missing is an honest discussion about it.

Doing what is right vs. what is expedient
While I am not an economist, I pay close attention to market analysis and do my best to look through hype and spin, that we have come to expect from financial advice industry. Read my previous post. You will find that the ratio of US debt to GDP is nearly twice that we had in Great Depression. The process of debt unwinding already started on Wall Street and with foreclosed homeowners and the fallout of the big 3. But this is just the tip of the iceberg when we consider other forms of debt in our economy - and the healthcare debts that are coming up due. As an American citizen, I hope Obama will have the wisdom and the strength to not let short term fixes cause long term ruin of this great country.

Thanks for reading my blog.....
Rony Delgarde