From Reuters:

Obama healthcare plan relies on the evidence
By Maggie Fox, Health and Science Editor - Analysis
Thu Feb 26, 2009

WASHINGTON (Reuters) - President Barack Obama's budget proposal relies on the evidence when it comes to healthcare reform, using research done by government and other groups on the best ways to change the system and save money.

It pulls heavily from reports by the Commonwealth Fund, Institute of Medicine and others that show extending health insurance coverage to more people will save money by preventing illness or catching diseases early, before they become expensive. About 46 million Americans have no health insurance.

The nonprofit Commonwealth Fund has also published studies showing that moving from paper medical records and prescribing to electronic technology can save money. Health information technology is a cornerstone of the Obama healthcare reform plan.

Studies show the reduction of errors caused by poor communication and scribbled prescription mistakes can save billions of dollars and tens of thousands of lives every year, and Obama is gambling those savings will help the federal Medicare and Medicaid health insurance programs.

The budget also includes a controversial $1.1 billion measure for the federal government to get into the business of comparing medical treatments head to head.

Government-supported studies have shown that older diabetes drugs such as sulfonylureas and cheap diuretics for heart failure work as well as, if not better, for many patients than new and pricey brand-name drugs.

[...continued...]

Among the additional healthcare initiatives is a push for more competitive bidding, a reduction of unnecessary test and an approach toward prevention in order to help keep Americans healthy, before the need for treatment is incurred and becomes more expensive.

Opposition and reviews appeared to be split along partisan lines. Via CNNMoney,

White House Health Plan Sees Mixed Reception In Congress
By Patrick Yoest, Dow Jones Newswires; Dinah Wisenberg Brin contributed to this report.
February 26, 2009

The White House released a budget framework on Thursday that included the $634 billion fund, which would be paid for in part by cuts throughout the health sector on Medicare payment rates. The largest saving would come through Medicare Advantage plans, which would see $177 billion trimmed from their payments over 10 years after a "competitive bidding process" is established.

Congressional Democrats said that plan is a signal that Obama is ready to pursue health reform efforts in earnest.

[...snip...]

But Senate Republicans, such as Sen. Mike Enzi, R-Wyo., warned that payment cuts would eliminate choices for Medicare recipients.

"The president said repeatedly during his campaign that Americans who like the health insurance they have would keep their existing plans in his administration," said Enzi, the top Republican on the Senate Health, Education, Labor and Pensions panel. "His budget proposal undercuts that promise."

The resulting Wall Street selloff -- yes, that bastion of fiscal responsibility and public-minded, ethical business practices had a sell-of of managed care stock -- seemed to echo that sentiment. However,

But a senior official from the White House Office of Management and Budget said Thursday that he did not expect that many health insurers would end their participation in the Medicare Advantage program because of the cuts.

"We expect there will be a great deal of competition and we expect there will be changes, but we are optimistic that market forces will help to bring down costs and keep as many Medicare Advantage plans in the system as possible," the official said.

An important point that is perhaps lost here is this: we're in the midst of a major recession, the worst since the Great Depression -- and one that may one day be referred to as "The Second Great Depression." Businesses are taking hits all across the financial sector. It doesn't make sense that a major source of potential, steady income would be abandoned on principle simply because it is less profitable, and the companies who "walk away" from offering services because they would see less of a profit than they did before would be hard pressed to find such a large and open market.

There's also another point that the Republicans are apparently having trouble adjusting to and acclimating themselves to:

Still, one Senate Democratic aide said that the Democrats' electoral gains provided a strong opportunity to make bold moves on health reform, such as the Medicare Advantage cuts.

"It's controversial for Republicans," the aide said. "But everyone is going to have to give a little when we get to the point when we get health-care reform, and Republicans sort of lost their leverage."

 

Elections have consequences.

It's now time for the government to get back to the business of governing, securing the nation, promoting the general welfare and ensuring equal justice for all. This is, after all, the United States of America and not the GOP Republic of Bananastan.