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Orszag and The Myth of Cost Control

John on December 14, 2009 at 8:04 am

From yesterday’s WSJ:

ObamaCare’s core promise—better quality care for everyone at lower costs—is being exposed as an illusion as it degenerates into the raw exercise of political power. Naturally, the White House and its media booster club are working furiously to prop up this fiasco, especially on cost control.

As Obama budget director Peter Orszag put it at a revealing media breakfast earlier this month, the Senate bill does everything the experts recommend to “get at the underlying drivers of health-care costs.” While he admitted that “we don’t know enough” to produce results right away, the key is to encourage “continuous improvement” through pilot programs and demonstration projects. Cost containment will actually take “years to decades,” Mr. Orszag conceded.

The torch was then passed to Ron Brownstein of the Atlantic Monthly, David Leonhardt of the New York Times and editorial writers for the New England Journal of Medicine, among others. Last week the New Yorker ran a 5,000-word apologia from Atul Gawande, who likewise owned up to the fact that there is “no master plan for dealing with the problem of soaring medical costs,” only “a battery of small scale experiments.” Keep in mind, this is an argument in favor of ObamaCare.

[...]

The White House hawked a permanent entitlement expansion on flimsy and speculative theories that its own partisans now admit—albeit when it is nearly too late—aren’t more substantive than the triumph of hope over experience, while simultaneously writing off the one policy that has been effective in the real world. The cost control mantra of ObamaCare was always a political bill of goods, and its result will be the opposite of its claims: poorer quality care at higher costs.

As for Orszag’s firm belief that this junk will “bend the curve” it’s not at all what he used to say when at OMB. Compare the Obama’s sales message from this summer with Orszag’s testimony as head of OMB in 2007:

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Category: Health & Education |

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