China questions costs of U.S. healthcare reform

November 16, 2009

Guess what? It turns out the Chinese are kind of curious about how President Barack Obama’s healthcare reform plans would impact America’s huge fiscal deficit. Government officials are using his Asian trip as an opportunity to ask the White House questions. Detailed questions.

Boilerplate assurances that America won’t default on its debt or inflate the shortfall away are apparently not cutting it. Nor should they, when one owns nearly $2 trillion in assets denominated in the currency of a country about to double its national debt over the next decade.

Nothing happening in Washington today should give Beijing any comfort or confidence about what may happen tomorrow. Healthcare reform was originally promoted as a way to “bend the curve” on escalating entitlement costs, the major part of which is financing Medicare and Medicaid. That is looking more and more like an overpromised deliverable.

For instance, a new study from the U.S. government’s Centers for Medicare and Medicaid Services finds that the healthcare reform bill recently passed in the House of Representatives would increase healthcare spending to 21.3 percent of GDP by 2019 compared with 20.8 percent under current law. That’s bending the curve the wrong way. The study also questions the “long-term viability” of the $500 billion in Medicare cuts meant to help pay for expanded insurance coverage.

In addition, the CMS study gives a clearer cost estimate than the one provided by the Congressional Budget Office. According to the CBO, the 10-year cost of PelosiCare is $894 billion. But that analysis includes early years with little government spending, According to the CMS, the House approach would cost $1 trillion from 2013-2019, or some $140 billion a year when fully put into effect.

Few realists in Washington think any of the current reform plans make a significant dent in the long-term healthcare cost to government. Indeed, the Senate Budget Committee recently held hearing about creating a bipartisan commission to find solutions to America’s entitlements problems.

If healthcare reform really bent the curve, there would be a no need for such a commission to do Healthcare Reform 2.0.

The Chinese might want to keep up the questioning.


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As I read your posts, I can’t help to think how these people are still in office. I have never heard reuters being refered to a polarized left or right news outlet yet EVERYONE agrees that the governments proposed healthcare is NOT wanted.Vote people! Criple this administrations ambition to control every individual living within the American borders.They wonder why there are all these grass root groups arming themselves at an alarming rate. It’s to stop the tyranny that we will all face if we allow our country to be governed as it currently is.(+) Pelosi(+) ReidThen get rid of all the Charlie Rangals and the rest of the corrupt dems.

Posted by evilR3 | Report as abusive

They’ll turn us all into beggars ’cause they’re easier to please.Decline and Fall

Posted by Paul H | Report as abusive

It’s a sad state of affairs that China will probably be listened to about this issue more than the millions of American people who want the government to stay out of their health care decisions; who do not want this crammed down their throats.

Posted by George | Report as abusive

Do you see what is happening to our infrastructure?The country and states are hemmoraging money.The wheels are already falling of the wagon. How much longer can the printing preses prop up the government? I still have never heard a solution the paying off the national debt. I think the people are confused when they hear politicians talk about a balanced budget or budget surplus. If most sat down and saw the progression of the debt we have attained they would be evacuating in their pants. At what point can we no longer even pay the interest payments on the debt? What happens when we really run out of money?

Posted by Paul H | Report as abusive

@imgibson: profit is a curious thing. Profits, at least in the short-term, go to those health care providers that cut the most from their bottom lines, which can be bad for consumers. However, profits also go to those companies that provide the most effective drugs, or the most best performing surgical and diagnostic tools, which benefit consumers.As for your ultimate question, it presupposes that government-overseen health care will be motivated by purely altruistic concerns, driven solely by the goal of providing the best possible care to the greatest possible number of people. Please let me know when you find a government capable of acting that way; surely you don’t suppose that our cravenly-political, back-room-dealing, hopelessly-partisan, and criminally-wasteful mess of a federal government is the right pick for administering the health care of 300 million people.

Posted by Mike | Report as abusive

When you add 30+ million uninsured into health-care system, when health care system refuses to deny any medical care/treatment to anybody for any reasons, when health care is treated as a right and entitlement and not a privillage earned, health care spending can only go up, not go down, no matter how you fund it.The pricing for any commodity/service adjusts to what market can bear, which is determined by what consumers would afford to pay. When the consumer is an individual, cost stricture would adjust to what individuals in their individual capacity can afford to pay. When it is a pool of individuals, the cost structure would adjust to collective resources of the consumer pool. Insurance industry creates a pool of consumers, hence health-care costs adjust to what insurance industry backed by pool of its consumer collective can afford to pay. Because of such collectivism administered by insurance industry, health care costs adjusts so high that no uninsured individual in can afford it. The right thing to do to bring down the costs would be to dismantle the collectivism administered by private sector, and not create even bigger collectivism administered by even more inefficient public sector. If collectivism administered by private sector has been a failure in containing health-care cost structure, collectivism administered by government and funded by taxpayers can only prove to be a disaster. Soon health-care will adjust its cost structure to what tax-base of USA can bear. Health-care system needs reform, but current proposals are merely exploiting it for partisan ideology. It has nothing to do with reforms.

Posted by KP | Report as abusive

Food for thought…There is an internal website that tells me what my “real” compensation is due to the companies subsidizing of healthcare, retirement, etc.I wonder what a politicians “real” compensation would be if you added, the private jet travel, security, entourages, healthcare, retirement. etc..???I think that the people who are governing are further removed from the real American then people are let to believe…

Posted by evilR3 | Report as abusive


Posted by Zander | Report as abusive

I have been a doc for too many years. If Big O gets his wish on HC reform, I’ll retire along with tons of other docs. We can not afford to practice.

Posted by Axe to Grind | Report as abusive

When communists admit they are scared of another country leaning more and more left, we should listen. China has become more of a capitalist economic power than anyone could have imagined for decades now. Can’t Obama admit that moving toward socialism is the wrong direction? Not since he is more concerned with power-grabs than with the real economic future of America. Please visit my website:

imgibson,Since health is one of the most important aspects of life, then why would you leave it up to the government? Shouldn’t people take the health of their families more seriously? I feel most people put health at the bottom, until there is a problem. Eating bad foods, smoking, drinking and not exercising.The healthcare bill was founded and pushed through on misleading circumstances. Do we have problems with skyrocketing medical and insurance costs?…yes, but they acted like people don’t have access to healthcare and they pushed through a health insurance plan that doesn’t make any sense and is going to bankrupt the US. If I have no insurance and I get in an accident, I can go to an emergency room and get treated. In the sad cases of cancer, you have to look to the charity of others, like churches, cancer foundations or other organizations to help pay for treaments, but you can’t just expect the government or anybody to have to pay for every possible treatment. Sadly at some point, if you have no more insurance or money to pay for treatment, there is nothing much you can do. Many people die even with all the money and treatments available to them (Farah). You can’t save everyone, especially if they don’t take the first step of trying to take care of themself.

Posted by Brad | Report as abusive

Of course the Chinese are interested in Nazi Care. Afterall, they OWN OUR SORRY ARSES thanks to Obama and the Dems.

Posted by ByteRider | Report as abusive


Posted by Betsy Ross | Report as abusive

I would ask the same question in another way. Health next to family is probably the most important aspect of one’s life. Why in the world would we leave the of the most important aspects of our life in the hands of narcissistic, out of touch with the common man, power hungry politicians whose only concern is votes that will keep them in office? To me that is unbelievable. There concern is not your health so why would we believe they’re going to do anything in our best interest.People will die either way whether or not it’s the incompetent unaccountable government in charge or “Greedy Insurance Companies”.

Posted by Hunter Rose | Report as abusive

Why in the world would we leave the of the most important aspects of our life in the hands of greedy politicians whose only concern is political power and self preservation?

Posted by Tim | Report as abusive

\”Why in the world would we leave the of the most important aspects of our life in the hands of greedy corporations whose only concern is profits. To me that is unbelievable.\”No, what is unbelievable is that you think this is actually about healthcare. It is about government control of your life from the cradle to the grave. Big Brother will decide what you can eat, or not eat, how much money you can make, how much tv you can watch, how many children you can have or not have (regardless of your ability to pay for them), etc. Then there\’s the control of your information. Unless you are in their system, and you will be, you will not be able to get buy medical services anyway. Of course, the only way they are going to be able to keep up with who really should be receiving benefits is to provide everyone with a unique identifier (you know, so \”illegals\” won\’t steal your benefits…right). Of course identity theft is so common these days, they will need to identify you in a more precise way…Verichip/Positive ID anyone? So, let\’s see: can\’t buy or sell medical services without a special \”mark\” (identifying that your dependence is on the government)…that reminds me of something: \”no one could buy or sell unless he had the mark.\” Revelation 13:17. You have been warned.

Posted by apgar1010 | Report as abusive

imgibson asks: How long is going to take the idiotic American public to realize we must have changes and reform?The already have….. the idiotic American public elected one of their own – the moron monkey man Barak Obama!O neB igA ssM essA merica

Posted by Roddy Piper | Report as abusive

Will China become an active participant in the US economy, in much the same way that CalPERS participates in the business affairs of its portfolio companies?

Posted by DX Young | Report as abusive

It’s obvious “imgibson” was educated in the government school system. Dear Dumbo do you think your boss has you working just to break even every year! I will be standing on the bluff watching & cheering as you & your cronies follow your “great leader” comrade BHO off the cliff.leb

Posted by leb | Report as abusive

Since our government has ceased control of its economy and relies on another government, China, for economic prosperity, China gains more control over America and can dictate policy. Our government has long lost control over its policy making. China is calling a lot of shots because they virtually own America. We are INDEBTED to China. I knew it was only a matter of time before our representatives sold us down the tubes. There is no other logical explanation to the totally illogical policy decisions coming out of Washington. Many decisions Washington makes are not in the best interest of the American people. Washington is being dictated to by who owns America…and it certainly is not the American people. There was a time when America was economically independent and strong. No nation could dictate policy to us. Those days are long over. The more America depends on China for its economic survival, the more influence China can exert over us. Just think of your personal finances…If The bank and/or credit card companies own your car, your house, your belongings because of your debt, they call the shots. You are not in control–they are.

Posted by Kathy | Report as abusive

Worst. Radical Leftist. Lying. President. Ever.Now that we got the “first historic” affirmative action presidency out of the way, maybe next time people will listen to reason.

Posted by Randal | Report as abusive

I know I am wasting my time but the problem with both sides. Liberals want to seize successful, working Americans incomes to pay for those who don’t or can’t pay their own way AND Americans as a whole have an totally unsupportable expectation of what health care should perform. You are not going to live forever, deal with it. We spend 85% of healthcare cost in the last two years of a person’s life because we have created an unreasonable expectation on living forever in this country.If you are 80 years old and are diagnosed with a terminal illness we should not be spending millions of dollars on that person to extend their life; that is stupid but we do it.Now you all can pick up your spears and start chucking but it does not change the truth.

Posted by Pal Adino | Report as abusive

imgibson: I got denied a procedure by an “evil” health insurance company last year. But I had a medical savings account and just wrote a check for it. This year I chose a DIFFERENT INSURER–imagine that! Isn’t that a CRAZY concept??? The “evil” insurer lost my business (x4 because I also have 2 healthy teenagers), and the “better” insurer got my business.So how does that work out with your “government” plan imgibson? Having trouble? I’ll help you–you get HOSED!!! That’s how it would work!If you are so darn sure you are right, why not put your money where your mouth is? You want to trust the government? Put your life saving medication in a box, take it down to the post office, and send it to yourself. I’m sure they’ll do a great job and you’ll have it delivered by the next morning.

Posted by Bob | Report as abusive

I wouldn’t buy what Obama is selling for all the tea bags in China.Thank you China. Keep asking the questions we’re not allowed to ask.Greed=expecting other people to pay for your needs.Hate=demonizing those people for asking question.Who’s the party of hate and greed?

Posted by Pops | Report as abusive

why in the world would someone expect an insurance company to pay for a pre-exisitng condition? its INSURANCE… not a service protection plan!insurance companies do not owe you access to healthcare. they are a business. the government does not owe you access to healthcare. does the government owe you a house? a car? a paycheck? a meal? a refrigerator?if we are owed healthcare – then who owes it to us? the feds don’t research/develop/manufacture medicine and medical equipment – private enterprise does. the government doesn’t heal the sick and care for the afflicted. healthdcare providers do. take away the ability for these companies to make money and provide jobs to their employees by requirng them to cover the cost of doing business – and the “healthcare” goes which point does a medical products company owe you the treatment they just dumped millions into developing and researching? if they can’t make money – they wouldn’t exist. you can’t legislate altruism.

Posted by carol | Report as abusive

Free trade is good. Buying American is better. China has us locked up tight. We can’t survive on our own manufacturing because we have out sourced it to China. We owe them so much money now that if they choose to they could run up our interest rates overnight.

Posted by Ross | Report as abusive

Control…Control…Control…The mantra of the Obama administration.Problem is the rent is coming due and the landlord (the Chicoms) aren’t satisfied with “I’ll have it next week” any more. If fact, at this juncture I’d venture a guess that the Chicoms have more capitalistic tendencies than the Obama administration! They certainly are pragmatic enough to realize that you can’t double down on your debt without a lot of negative consequences, unlike Obozo who lives in a land of chocolate fairies, pixie dust and unicorns.

Posted by Jim | Report as abusive

Of course it’s not about health, it never was and never will. Don’t think for a second that insurance companies care about your health. And what might I ask is the government trying to become right now? A heath insurance company. Wow, it’s not too hard to figure out no one gives a rats arse about health but money, people. BUT what is more important than money? Can you think of anything? How about votes? Once the health care bill passes next on the list is amnesty. They go hand in hand. You want to keep your heath insurances low in terms of costs? Then let the government give amnesty and everybody will have fordable crap insurance. Did i say Crap insurance? I’m sorry, i meant health insurance. You don’t want your costs high? Then have more people pitch in..BUT wait, only American citizens can health care. How can we bring more to the weal? Amnesty! That’s how. So, if any idiots out there think that government cares about your health and not about power, money and votes(the new American citizens will ensure monarchy and dictatorship for a looong time), you have a few more years to grow up and smell the coffee. It’s too sad that people don’t think before they follow like zombies some ideologies that NEVER served and never will serve the American people but the politicians: dems or reps, they are all the same. They form the government and we, as employers of the government should start acting like it. As long as employees run the company and the employer follows, the company is going down. Look up a history book and learn from your founding fathers. Be careful American people, we are about be get screwed permanently and there’s no way back. Once America changes to the core, the Constitution will become irrelevant! Wake up!!!!

Posted by zocr | Report as abusive

I didn’t want to post anything, but then I read imgibson’s astoundingly misguided post.He starts off correct, little is as important as your health. Then he goes off the deep end asking why you would entrust it to a company that wants to make a profit! First a question for him, then an explanation of why.Why would YOU trust your health to the government!?!?Now, why would I choose to put my faith in an company that wants a profit? Because, unlike the government, a private company has a vested interest in keeping me as a customer. If I die, they don’t make a profit. If I get fed up with them and go to another company, they don’t make a profit. This ain’t rocket science.”But what about people with preexisting conditions that can’t get coverage?!” whines the liberal.I’m sorry for those people, but that’s not insurance, its welfare. Insurance by definition is to protect you against what might happen in the future, not what has already happened.If you want to discuss welfare for those unfortunate enough to be in poor health and unable to get affordable coverage, great, that’s a legitimate debate that needs to happen. There are many good people out there in that situation, but let’s not lie and call it “insurance”.

Posted by Matt | Report as abusive

Good for them! China may save our economy! Someone has to stop the madness. The Kool-Aid drinkers in America are swallowing Pelosi/Obozo’s figures on healthcare that don’t even begin to make sense. Now that Obummer has spent us into oblivion and China ‘owns’ us, they can question our spending. Not a very good place to be, Barry! BTW: Where did you say those “saved or created jobs” were once again? It seems that, also, was a LIE!

Posted by Anne | Report as abusive

About thirty years ago a Greek friend of mine in New York was horrified when he was informed that having a pylonidal cyst removed in a local hospital would cost about US$8,000.00 I gave him an idea, “Go to Greece for the operation.” He flew to Athens with his wife, went to a top notch hospital, had the bulge removed, went to Salonika to recover, bought gifts for all family and relatives, spent some time visiting with friends and two weeks later flew back to the Big Apple, all for about half of the amount quoted. “Sitting in a plane with a sore butt during the return flight wasn’t all that pleasant,” he said upon his return, when he brought a bottle of ouzo, “but it was worth it.” Health reform with the current outrageous amounts charged for all medical services in the U.S. is unreal. The federal government would save a bundle if all of us with medical conditions requiring surgery and/or therapy, and unable to afford insurance premiums, or uninsurable due to preexisting conditions, were shipped overseas for the procedures. That might not go too well with our dear friends in the domestic medical and litigation rackets, but since they are part of the problem, it could prove wise to exclude them from the solution.

Posted by Benito García | Report as abusive

The Chinese should just write off our debt and nuke us. Put America out of its misery…

Posted by myke | Report as abusive

what is wrong about corp making profit? How often many of us have forgotten “Win Win” siutuation. Wait until we become a socialist country, then you know what is injustice. I am 57 years, I personally wintness how is life like living under a communist country.

Posted by siuwah | Report as abusive

Those darn chinks are racists…..attacking our poor idiot president and his dimwitted programs…racists i say

Posted by paul | Report as abusive

Our IL senators keep telling me that cuts won’t be made to medicare recipients. Then why are my friends and relatives rushing to get their hip/knee/whatever surgeries done before the healthcare plan passes in DC?

Posted by Helen Corey | Report as abusive

“I like Not_American’s comments and though I believe Obama is a catastrophe he cannot be blamed for this particular mess. But his party certainly can and so can the Republican bafoons who have been in office for years(i.e. John McCain) and done nothing but advance their own portfolios and resumes while we have no energy policy, no medical plan, no answer to the trillions of dollars of unfunded liabilites in social security and medicare, just to name a few of the disasters that await this country. It has been a good run but it is over. Unless you are ready to fight WW3 the gig is up. Checkmate!!”- Posted by LAlifeDo you dummy’s realize we have had the democrats controlling the house and senate for a long time now? This all doesn’t fall on JUST Bush ..You can give much thanks to CLINTON & his cronies for the place we are in today also! Obama is doing what Clinton started! Both were commie socialists and so are the stupid S.O.B.s that voted for Obama!

Posted by Bill | Report as abusive

Even a communist government can figure out that Obama and his Democratic friends in Congress have no idea what they are talking about and don’t know what they are doing.How sad that America has deteriorated to the point that its leadership is as ignorant as it is

Posted by Kimberley | Report as abusive

The local jail was ran by a private company for about twenty years but last year their contract was cancelled and the local Sheriff took back management of the jail. He was given the same budget as the private firm and after a year he returned about twenty percent or two million dollars back to the county. The employees were paid more and the cost were cut drastically because profits were not taken and no bonuses were paid out to absent executives.I do believe if every bill at a hospital was being paid the cost sharing that happens when paying customers are forced to pay for those that do not have insurance could be avoided making all bills lower. Medical bills are all higher expecting several percentages of patients to not pay anything. Also the very high price for certain tests need to be lowered to a cost plus and not as much as the hospital can charge. Another change that needs to take place is if someone desires to build another hospital making more bed available they should be able to do so without some government agency putting a cap on the number of beds allowed in a community. More competition with more hospitals being built would also drive DOWN costs. When a discount operation goes into the health care business and builds hospitals all over the country they can discount services and cause a non competitive industry to get competitive.

To imgibson:What makes you think that people who work for the government (and answer to politicians) are any better than those who work in the private sector? Self-interest is equally strong in both groups. They just have different methods of seeking wealth and power. So, what do you think will happen if you have the group that makes the rules competing directly with the group that doesn’t?Government’s job is to fix the rules so that the marketplace works like it supposed to – separate health insurance from employment, cap malpractice settlements, require insurers to accept preexisting conditions, forbid them from canceling coverage, create an agency to collect and distribute information on the performance of both providers and insurers, gather and publish statistics on best practices and allow insurers to accept clients nationwide. Then, step back and let the marketplace work.

Posted by Jerry Brown | Report as abusive

Allen . . . please . . . that never happened. Quit lying.

Posted by Carl | Report as abusive

Another point I failed to make is that the Chinese and others that buy our debt may very well start to question how we spend our money. The question of health care costs will be followed by the money spent on the military and the hundreds of bases we have all over the world is sure to come into question. Before long the two wars we are fighting will be questioned and we may very well be forced by our debt owners to pull out of these wars and close our foreign bases or be forced to default on our debt. If you think this is the only spending the Chinese will challenge get ready because it is going to go beyond health care.

Allen . . . please . . . that never happened. Quit lying.- Posted by CarlCarl you can check if yoyu like .It happened in Bay County, Florida. Call the Sheriff or jail at 850-785-5245 and verify it is true.

China is questioning?? China?? The American People would like to know the costs as well! Oh, I know, we’re just suposed to go with the flow.Impeach the marxists!

Posted by Sisal Buckler | Report as abusive

If health care is so important, why would you leave it in the hands of greedy politicians? When it’s (insurance) in the hands of a corporation, it’s your right to cut them out and pay the doctor yourself. Under PelosiCare, you have no right to pay the doctor yourself (I’m not making this up-they will jail you if you don’t but insurance). Stop being greedy yourself and asking others to pay for your insurance, it’s enabling tyrants like good ol’ Nanci.

Posted by John Thoits | Report as abusive

Those who complain about the profits insurers make should:1. pull their money out of the stock market2. forfeit profits in their company3. ask themselves why they go to work every dayAnd, to Pal Adino who thinks that it’s pointless to save someone with a terminal disease their 80′s, chew on this…if we didn’t try to save life, we wouldn’t learn how to advance care. Or, would you rather our life expectancy revert to age 40?Pops – good point.My solution, kick out the illegals who are straining our health care system. Enforce the laws on the books instead of rewriting new ones. Use common sense. And Obama, quit trying to be the new savior.

Posted by Endora | Report as abusive

The price of gold in U.S. dollars has gone up 60% since Obama was elected, despite the total absence of current inflation. And while the dollar has also gone down dramatically in relation to other currencies, the price of gold in those currencies has surged as well. This is a pretty clear sign that most of the world thinks the financial system, historically led by the U.S., is headed for chaos. And the U.S. is led by a man whose ideas about economics were formed by a flaky Marxist Mom, radical organizer Alinsky, former Weatherman Bill Ayers, hate-America preacher Jeremiah Wright, ACORN, and plutocrat George Soros. I can’t imagine why the world thinks we’re in big trouble. Can you?

Posted by AnJo1 | Report as abusive

To imgibson.Could we keep it civil please? You lost me as soon as you made a reference to the “idiotic American public”.Unlike corporations, we all know that the federal government has nothing but the interest of the little citizen in its heart, and it is usually doing its job so efficiently and competently (see Post Office, Abu Gharib, No Child Left Behind, The Patriot Act, and every other federal program you do not like).Yes, some change is needed. Doing away with pre-existing conditions is necessary. Same with excessive punitive damages (not in the plan). And yes, the federal government has a role to play, but it is limited to its constitutional duty to regulate inter-state commerce. Nothing more, nothing less. In that capacity it can provide regulations, but it CANNOT and shall not provide health-care.

Posted by Sharon | Report as abusive

The only curve bending going on is in the terminology. Feminists have wanted national health care for years to entitle single motherhood and destroy marriage. Hillary failed because she is a feminist and America smelled a rat. Obama is getting it because he is a feminist but does not look like one. This is why Health Care changes will cost much more than what we are doing now.This is all documented in the words of ranking liberals in my WND article “Doubling the Size of the Welfare State” ( w&pageId=115132 ).National Health Care is a doubling of the size of the entitled welfare state. We must reject it flat out on those grounds and start working on policies to improve marriage rates and reduce out-of-wedlock births. Those were the two most important goals of welfare reform not addressed in the 1996 legislation.

imgibson – who do you think is in bed with the biggest of those wascaly corporations now???? Deep breath, think…jeeeeeez wake up.

Posted by shempus | Report as abusive

Regarding the comment below: And do you believe that politicians are less greedy than corporations? Or that polticians have your interests at heart more than corporations? The politicians would send kids to die in a war, over what? For the welfare of whom!?[i]This is the question I would like to ask. Health next to family is probably the most important aspect of one’s life. Why in the world would we leave the of the most important aspects of our life in the hands of greedy corporations whose only concern is profits. To me that is unbelievable. There concern is not your health so why would we believe they’re going to do anything in our best interest. Ask the families of people who have died because the insurance companies refused or denied life saving treatment. If that’s not a death panel I don’t know what is. Of course they only want to insure healthy people and omit pre-existing conditions while continually raising premiums and will continue to do it because WE HAVE NO CHOICE.[/i]

Posted by Dewaine | Report as abusive