As the illustration shows, you million poor souls in Massachusetts who are not self insured and not on Medicare and not already on capitation are the RomneyCare victims that will "pay for" DeLeoCare. I can't figure out how DeLeoCare will deliver its macro $160 Billion in "savings"1 over the next 15 years given that only a few of you -- relatively speaking -- will be asked to contribute. And DeLeo isn't saying. And the far-left-wing press isn't asking.
But at least, based on some other snippets of arithmetic in the DeLeoCare propaganda, we are told an "average family of four" will save nearly $2000 in five years. Or is that over five years? Or is it $2400? The fawinig left-wing Massachusetts press has totally botched this part of the story too.
- If an average family of four's premiums are $15,000 a year and that's going to be reduced to $13,000, certainly the $2000 doesn't go to the family itself unless the family pays the whole $15,000.
- And as for the source touting $2400 in savings, only $700 are in premiums.
- You're going to spend $400 less in co-pays because you don't go to the doctors as much.
- And your employer is going to then give you the $1300 he or she saves in higher salaries rather than dropping it to his or her bottom line. Right!
Although DeLeo withheld the details, it seems likely there are about 4,000,000 discrete 'insured units' in Massachusetts (you can't use the word policies; if you are insured by your employer or union, the employer or union is the policy holder). But those units could range in size from one person to a family of nine. How the savings vary for each of those units presumably would depend on the unit's size and more.
And of course the state is the employer or policy holder for about a million of you; the state gets the "average savings." (Which is as it should be but they never tell you that in their boastful press releases.) In addition, we know, in Massachusetts that people buying insurance as individuals and people buying in small groups have different premiums by age, geography and occupation. When Governor Patrick says he held "merged market" rate increases to a percent or so, he never explains that unless you experienced the greatest health care outcome of all time -- not getting older -- you still get a double-digit premium increase. Nothing in DeLeoCare seems to change that.
Oh well, whichever you are, don't spend the $700, $2000 or $2400 yet.
-- Dennis Byron
1 Representative Walsh was clear that he meant savings against what otherwise would have been spent. This seems to indicate Walsh believes President Obama's Patient Protection and Affordable Care Act will be repealed or be a failure. But let's leave that for a later post.