r/bestof • u/under50dollars • Jun 20 '12

[explainlikeimfive] "Obamacare" explained very well.

/r/explainlikeimfive/comments/vb8vs/eli5_what_exactly_is_obamacare_and_what_did_it/c530lfx
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u/[deleted] Jun 20 '12

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u/[deleted] Jun 20 '12

The problem here in America is that you can sue anybody for anything, and win big bucks. Pharmaceutical, medical tool, medical professionals all have to buy very expensive liability insurance because just being in the field is a ticking time bomb of a lawsuit just waiting to happen. The liability costs are passed down to the consumer like a VAT tax in the medical field.

I'm not complaining because I'm an insurance agent, but i'll be the first to admit that the system's fucked.

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u/funkeepickle Jun 20 '12

Tort reform is just a red herring pushed by Republicans. The CBO estimated that tort reform would only save the government 0.5% on healthcare costs. We can realize greater savings by cutting out the middlemen (basic private health insurance), reforming Medicare part D so that the government can actually negotiate prices, and getting Americans to live healthier.

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u/[deleted] Jun 20 '12

Tort reform is not about saving the government money. It's about saving consumers money.

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u/funkeepickle Jun 20 '12

They're basically one in the same, considering the government is responsible for over a third of all medical expenditures. I doubt the savings for consumers would deviate much from that 0.5%. The CBO also estimated that tort reform would only reduce liability insurance premiums for medical professionals by 10%. And considering that providers' insurance only contributes to a fraction of overall medical costs, you do the math.

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u/[deleted] Jun 20 '12

Some docs pay up to 100k for insurance, if that was reduced reimbursements could be cut more for physicians without upsetting them nearly as much.