Warren Buffet on Healthcare Bill

Mags

Registered User
Forum Member
Aug 8, 2000
2,813
27
48
When Warren speaks, America typically listens from what I've heard.....

Obtained today from politico.com

March 01, 2010
Categories:Miscellany .Buffett says scrap reform bills and focus on cost
The Oracle of Omaha's latest advice is probably not something President Obama is going to want to hear. Warren Buffett, a longtime Obama supporter, is calling on the president to scrap the Democratic reform efforts and redraw a bill that focuses on controlling cost, which he says the current bills don't do well enough.

Buffett's opinions carry a lot of weight in both the financial and political worlds so expect critics to cite this interview repeatedly. The remarks are a bit of an about-face for Buffett who essentially defended the Senate bill in December saying he would have taken the same vote Sen. Ben Nelson did when the Nebraska Democrat supported the bill.

From his CNBC interview:

WARREN BUFFETT: We have a health system that, in terms of cost, is really out of control, and if you take this line and you project what has been happening into the future, we will get less and less competitive. So, we need something else. Unfortunately, we came up with a bill that really doesn?t attack the cost situation that much and we have to have a fundamental change. We have to have something that will end the constant increase in medical cost as a percentage of GDP.

Reporter: Then, are you in favor of scrapping this and going back to start over?

BUFFETT: I would be -- if I were President Obama, I would just show this chart of what?s been happening and say this is the tape worm that?s eating at American competitiveness, and I would say that one way or another, we?re going to attack cost, cost, cost, just like they talk about jobs, jobs, jobs in the economy. It?s cost, cost, cost on this side. That?s a tough job. We?re spending maybe $2.3 trillion on health care in the United States, and every one of those dollars is going to somebody and they?re going to yell if that dollar becomes 90 cents or 80 cents. So, it takes -- but I would try to get a unified effort saying this is a national emergency to do something about this. We need the Republicans, we need the Democrats. We?re going to cut off all the kinds of things like the 800,000 special people in Florida or the Cornhusker Kickback, as they called it, or the Louisiana Purchase and we?re going to get rid of the nonsense. We?re just going to focus on cost and we?re not going to dream up 2,000 pages of other things. And I would say as President, I?m going to come back to you with something that?s going to do something about this, because we have to do it.

Reporter: Just focus on cost or focus on cost while insuring more people?

BUFFETT: Well, yeah ?

Reporter: Is there two different problems?

BUFFETT: Universality -- yeah, I believe in insuring more people, but I don?t believe in insuring more people until you attack the cost aspect of this.




Posted by Chris Frates 11:59 AM
 

Chadman

Realist
Forum Member
Apr 2, 2000
7,501
42
48
SW Missouri
With all due respect, and I do respect Buffet and don't necessarily disagree, Buffet made a lot of money in the insurance business, and if I'm not mistaken still has a huge interest in the insurance business. No doubt he has a huge interest in less focus on the insurance business when it comes to healthcare issues. To the point of of course he believes in insuring more people, as long as it doesn't hurt his business. If he can benefit from insuring more people, without hurting the bottom line of his businesses, he'll definitely be for that. Because, as we've seen, insuring more people will also HELP those that insure people.
 

Mags

Registered User
Forum Member
Aug 8, 2000
2,813
27
48
With all due respect, and I do respect Buffet and don't necessarily disagree, Buffet made a lot of money in the insurance business, and if I'm not mistaken still has a huge interest in the insurance business. No doubt he has a huge interest in less focus on the insurance business when it comes to healthcare issues. To the point of of course he believes in insuring more people, as long as it doesn't hurt his business. If he can benefit from insuring more people, without hurting the bottom line of his businesses, he'll definitely be for that. Because, as we've seen, insuring more people will also HELP those that insure people.

Chad:

His point was, fix some of the cost issues before adding more folks to the system on the back of taxpayers. Too much scrutiny is been on the insurance industry - they are easy villains. Many times, the reason that prems are going on so much isn't due to increased profitability (which many people incorrectly assume), but due to costs going up and healthy people dropping out of the system (insurers can't make healthy people stay - many times only the sicker population retain their coverage in periods of a bad economy).

Many companies will not be better off under the new proposals. Small companies will not be able to compete, and will likely close. This will mean less competition.

The problem is, BCBS is the giant in every state. They have been pushing this legislation as it fits their business model - and it helps eliminate competition. I know a number of carriers I've talked to that have said they will leave the business if by 2014 if this goes through - maybe before. The healthcare bill turns insurance companies into public utilities unfortunately.

I wonder which industry the dems will shut down next? We all know that we can reduce prices with artificial cost controls - mandating prices never works. I would assume that the gas industry and the food industry (grocery stores) will be next........
 
Bet on MyBookie
Top