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2017-04-11 08:30 by Karl Denninger
in Editorial , 480 references
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I'm sure by now you've heard of the latest incident of corporate thuggery on a United Flight.

United, you see, had a full plane.  They also had failed to plan and needed to get some of their employees to a location where said plane was going.  Having offered up to $800 for people to give up their seats and finding no takers, they then forcibly removed passengers so their failure to plan could be rescued at other people's expense.  One of those removals went poorly when said passenger refused.

First, let's dispense with the legalities -- airline "contracts of adhesion" allow them to do this.  And yes, they are contracts of adhesion.  That is, you can't negotiate them, they're "take it or leave it" and they're all essentially identical.  Contracts of adhesion ought to be unenforceable when adverse to you, but they're not in today's world.

Second, once seated you damn well ought to be, well, seated.  There is a point beyond which your contract to get from A->B should be confirmed and it's definitely beyond the point where you are in your seat and belted in, as was the case here.

Third, the airline should, if they fail to plan properly and thus have sold more seats than they have, and especially when the reason they have too few seats is their own failure to plan to get their crews where they need them, be forced to pay the market price for those seats.  Said price might be very high, but there is a price at which people will choose to voluntarily get off the aircraft.  What is that price?  Nobody knows until the offer is hit but the price of failure to plan ought to be the market price, and in a just world it would be.  Will that be expensive for the airline?  Yep.  So what?  That is the check and balance on not doing stupid things -- like selling more seats than you have.

Fourth, it is illegal for me to threaten to, or actually use, criminal sanction to settle a civil dispute.  In fact it's a felony to do so.  Why isn't United under criminal indictment right now for calling in the cops and having them use force at a criminal level to resolve what was a civil issue?  Denying someone boarding before they get on the plane is an entirely different thing as you're not physically using force to make them leave; if force comes into the game in that situation it's the passenger who initiates it by rushing the gate.  At the point the airline has boarded and seated you their opportunity has passed absent you committing a criminal act, and sitting in your seat that they assigned you doesn't get there.

This is really just another example of we the people tolerating ridiculous abuse at the hands of "corporations."  We allow this every day -- we allow a "doctor" to refuse to give us a price before they perform a surgery, we allow a hospital to present blanket consents that are considered "legally valid" after drugging you while if you do the same thing in a bar we call the sex that results rape, we allow an airline to sell more seats than they have which is in fact an act of fraud since they can't fulfill the agreement they made, we allow hotel companies to quote "prices" that do not include taxes and other fees in the price which you only find out after making a selection and more.  Indeed when it comes to airlines the pricing games are even more-ridiculous; the "price" doesn't include, in many cases, a handbag you carry with you as some of them now charge for carry-on luggage, say much less checked bags and none of them include the taxes and fees in their fare quotes.

In the so-called "leisure" world the fees and taxes are often ridiculous multiples of the common sales tax.  I know what the sales tax is in my area and it's easy to figure out what it is in most places.  However, "bed taxes", "TSA fees" and similar often mean that if you get a hotel room you pay two or even three times the base sales tax rate and if you buy an airline ticket the fees might be 30% or even more of the fare and yet none of that is quoted in advertising -- nor until after you make a selection.

Knowing all that in advance and applying general consumer protection laws that provide that a quoted price must be the actual price would mean that now I might choose to stay in one town instead of another because one imposes such taxes and the other does not.  I might choose one means of transportation over another because one imposes such fees and taxes but the other does not.  It's nearly impossible to fairly compare these things today but it should not be; everyone should have to post a price and that ought to be the full and complete price, to the penny.

Why do we allow any of this?

Why do we not immediately, through lawful means, "burn these businesses to the ground" -- by boycotting not only them but everyone who works for them?

Oh, you "need" to fly, you say?  Uh, no you don't.  Make those tin cans worth zero by refusing to get in one.

Oh, you "need" a doctor?  Well, perhaps in some circumstances you're unable to shop and consent (e.g. you just had a heart attack) but in many others that is not true; you could, upon being refused a binding price, not only refuse to do business with said physician you could refuse to have anything to do with him or her and anyone he or she employs anywhere, up to and including refusing to sit in the same pew with them in church!

Why should we allow various online sites to quote us hotel, event ticket and other prices without the taxes and fees included?  They know damn well what the taxes and fees are when they present a price so why don't we insist that they all be included so we can compare?

There's utterly no excuse for this sort of thing but the fact of the matter is that we, the people get this kind of treatment because we allow it.

Should United be financially destroyed over this by customers refusing to do business with them?  Yes.

But they, and all the other firms that pull this crap every single day, should have been destroyed years or even decades ago when they first started refusing to actually honor what was allegedly "offered" at the price given -- whether it be through this sort of "involuntary denied carriage" or through posting a price that the seller knows is false because it does not include mandatory taxes and fees that they will, in every case, demand you pay and they add on.

And oh, by the way, if United can employ violence when they don't like the price presented to them to voluntarily get their way why is it that the rest of us should not take exactly the same position and employ the same remedy when we don't like the price of a ticket, a hotel room, a doctor visit or a car?

As for United, I have a simple reply for their corporate failure to plan and then foisting the cost of that failure on others, whether "legal" or not:


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2017-04-07 09:24 by Karl Denninger
in Foreign Policy , 1289 references
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Oh hell, why not.

First things first: Who used chemical weapons in Syria recently?

The US says it was Assad.

Does anyone remember that Assad allegedly gave up all his chemical weapons?  You forgot that story, right?  It was touted as one of Obama's "wins"; in fact Susan Rice (yes, that Susan Rice who stands accused of "unmasking" Trump and his pals in "accidental" intelligence intercepts and spreading same all over the government to, some say, "encourage" leaks) said in January that the Obama Administration had secured the removal of all chemical weapons under Syrian government control.

Now maybe she was wrong and maybe she was lying.  But if she wasn't wrong then obviously Assad didn't use what he didn't have.

And let me remind you that there were myriad news reports at the time (2014) that in fact those weapons were gone.

The salient question is this: Who actually used these weapons and where did they come from?

Let me remind you of a few other facts:

1. Assad is winning against the "rebels"; why would he use chemical weapons in a war he is winning when he knows that will bring immediate and serious problems for him?  Assad is a five-alarm bastard but he is not stupid.

2. The "rebels" contain a very large contingent of ISIS backed or affiliated terrorists.

3. The "rebels" would love to see the US come blast their opponent who is beating them in their civil war.  There's nothing like getting someone else to come blow up the guys who are trying to kill you, especially when you're losing!

4. The "rebels" don't give a damn about international law either (terrorists, remember, generally could give a crap about what anyone else thinks.)

The manifest weight of the publicly-visible evidence is that the rebels had motive and perhaps opportunity.  Assad had no motive; he was winning and, according to Susan Rice as recently as January he had no opportunity either.

How do you use something you don't have?

So on a first-blush look I got two negative factors on one side and one positive and one neutral on the other.  Without some pretty firm evidence I'd say the odds are far higher than the "rebels" used the chems than Assad did, but I don't have access to classified intelligence.

There are other issues too.  I saw plenty of pictures of medic-type workers tending to people allegedly gassed but not wearing any sort of PPE.  Folks, Sarin, if that's what was used (and it is what was claimed) is a moderately long-persistence nerve agent especially in liquid form, which incidentally it is at room temperature and pressure. While the residue might not kill a medic after the fact it sure isn't anything good to be around or get on you and it does penetrate through unprotected skin.  Would you go tend to those injured in a gas attack using a long-persistence agent without wearing full PPE?

Just asking, you know.

Now maybe it wasn't Sarin.  Maybe it was chlorine or some other quick-dispersing light-molecule agent (e.g. a gas at room temperature and pressure) that has little residual risk.  But we have been told it was Sarin, so who's lying and what are they lying about because I'm quite certain that no medic in his or her right mind is going to tend to neurological agent victims without taking appropriate precautions against becoming a victim themselves.

Given that we fired 59 cruise missiles (at what -- $2 million each?) resulting in a few blown up airplanes and concrete shelters, plus apparently a fuel depot on a Syrian airbase (but apparently not a destroyed runaway, I note) did we just witness a very expensive fireworks display "for show" or is there something to this?

And if the latter did we actually hit the guy who used chemical weapons or did we just provide military assistance to terrorists?

I'm not at all sure -- and that's not so good.

It's especially not so good, if you think about it, if Assad did use the chems.  See, if he really did do it then he had them, which means Rice was either wrong or lied.  Before you dismiss this as "politics as usual" let me remind you that we were also repeatedly assured that Iran does not possess a nuclear weapon, and that Obama prevented that from occurring, just as he "disarmed" Assad's chemical stockpile.

You might want to contemplate laying in backstock of SPF 50,000,000 Sunblock -- just in case Rice and the Press lied twice.

Since many seem to have trouble understanding the meaning of the above ("fireworks display") I'll help you: Contemplate the circumstances. The strike came while the Chinese head-of-state was having dinner with Trump.  There is this little problem over in the South China Sea, and a military confrontation of any sort there would get messy -- fast.  The Chinese are not stupid, and knowing that Trump is willing to cook off nearly 60 cruise missiles while having dinner just might have been as much for Xinnie Boy's consumption as Assad's.  Oh, and add to that the fact that the Russians are very interested in not having things get out of hand between Japan and China since both are in their back yard, never mind the little Korean issue so....... yeah.

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2017-04-07 07:45 by Karl Denninger
in Employment , 307 references
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Oh this is amusing...

The unemployment rate declined to 4.5 percent in March, and total nonfarm payroll employment edged up by 98,000, the U.S. Bureau of Labor Statistics reported today. Employment increased in professional and business services and in mining, while retail trade lost jobs.


The household survey says something different entirely; it was +1,034 (1.034 million), statistically identical to last month's 1.067.

262,000 people came back into the workforce and the employment:population ratio ticked up 4 ticks.

Meh.  As for the employment:population ratio that's normal from a seasonal perspective:

So far there's no trend break here.  I'll keep an eye on it for a possible break of trend next month, but thus far, nope.

What I find particularly amusing is the continued "employment gain" in the biggest theft sector in the economy: Health care.  Of course nobody cares about what the CBO says is going to blow us all to bits -- the exponential expansion of Medicare and Medicaid, a fact I've been tracking for a couple of decades, raising hell about since I started writing this column and which the CBO now pegs as having entered the "headed for straight up" part of the curve -- which is where it blows the economy and markets to bits.

Most of those "health care" jobs, incidentally, have exactly zero to do with delivering one bit of care to anyone.  They're all administrative -- or, if you prefer, parasitic.  Ditto for "financial activities" (read: buy KY by the 55 gallon drum; you're going to need it.)

Retail trade went in the toilet, losing 30,000 employees.

One interesting point: 16-19 year olds, which are mostly high school students, saw a outsized improvement in employment:population ratio.  This is a very odd month for that -- it's normal to see it during May or June (when school is out) but not now.   You have to wonder on this one....

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2017-04-05 11:45 by Karl Denninger
in Editorial , 510 references
[Comments enabled]  

Stop the inane folks.

Seriously, stop it.

I want you to take just a few minutes and listen to this.  I've conveniently set the time to where the salient portion is in my presentation (Youtube's "time selector" has some slop in it on replay due to buffering, but it's very close):

That's a roughly hour-long talk I gave in 2012. Health Care including VA (which I exclude in my current postings) was $850 billion in 2012.

Last fiscal was $1,417 billion or nearly a double in five years.  That's the same acceleration in spending that has been going on since the 1980s.

This cannot continue.  It must stop now.  I have been writing on this incessantly since 2007 here in The Market Ticker, been raising hell about it since I was an Internet CEO in the 1990s and been doing presentations on it to so-called Conservative groups through most of that time, including this one in Orlando in 2012.

Sticking your fingers in your ears and going la-la-la-la-la-la-Trump-La-la-Trump-la-PlannedParenthood-la-la is going to get you and your children killed if you have any sort of medical issue whatsoever in the next five to ten years.

Social Security has exactly zero to do with the impending insolvency of the Federal Government, as I've repeatedly pointed out and the CBO has now underlined.

 by tickerguy

It is this exponential explosion in debt that was clearly going to happen in the 1990s, that I was talking about in the above presentation and now it's staring us in the face as we are entering the portion of the curve where it goes straight up.

This is all Health Care as I have been saying for decades and presenting to anyone who cares to listen in multiple public speeches, including this one.  The trend has been maintained despite Obamacare's passage, despite lots of bleating by the Congress, despite the so-called "Make America Great Again" and more.

America will not only fail to become "great again" it will collapse on a fiscal basis and so will the economy if this is not stopped now.

We have less than five years.  Not to talk about it, not to start it but to completely and permanently put a stop to and return it to historical norms -- which is about 1/5th of today's spending levels.

We had 30 years, then 20, and when the above presentation was made we had 10 years.

We squandered all of that time and opportunity.

We decided that "Guns, Gays and God" were more important than mathematical laws that guarantee outcomes.  We decided that fighting over Planned Parenthood was more important than destroying the economy that every child in this country has to live in just a few short years down the road -- both the children here today and to be born tomorrow.

Folks, we either cut this crap out right here, right now, today or this nation dies.  It dies fiscally, it dies economically, millions will die physically and the odds of ridiculous levels of unrest and violence typical of places like Venezuela is far too high for anyone to rationally accept.

So here's the deal: If we're not going to make progress because nobody will stand and demand that the politicians stop this crap right now, and enforce that demand through whatever peaceful acts are necessary up to and including a general strike then everyone may as well put their middle finger up and go enjoy the next five years while there's something left in America to enjoy.

Just make sure, if you're going to do that or sit on your ass and cheer on Netflix, Facebook and Amazon that you're ok with your kids being screwed or dead along with yourself -- because that's exactly what's going to happen if we don't act now.

Not in five years, not next year, not next month, not "after tax cuts" or "after Trump does X" or even "after we impeach Trump" (if you're a Democrat.)

It has to happen now, not during some mythical tomorrow which is always promised by the political class and yet that "tomorrow" never comes.

The answer is found here and here.

"Do or do not -- there is no try" - Yoda

"If you choose not to decide you still have made a choice!" - Rush, Free Will

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2017-04-04 08:16 by Karl Denninger
in Health Reform , 453 references
[Comments enabled]  

Let's talk about the implementation of my model bill that I recently posted to reform health care on a permanent basis.

It's fairly easy to envision timelines based on complexity.  Simply put, most of this isn't complex because providers have price lists now -- you just can't see them.  So with that said, let's look at an example and assume The Bill was passed and signed somewhere around 30 September -- or the close of the fiscal year.

What's next?  The following timeline appears to be reasonable.

Beginning immediately on signature with implementation required on or before 1/1/2018:

  • CMS (Centers for Medicare and Medicaid Services; the existing federal agency) would be required to spin up the interface for Treasury to verify whether someone who presents credentials as a US citizen or lawful permanent resident is, in fact, a citizen or lawful permanent resident.  Treasury already has this via the Social Security Administration, since they have the records of all issued Social Security numbers and addresses from tax filings.  In fact you can get at this right now (for yourself) via  CMS also already has an electronic interface system for all medical providers who are registered in order to submit Medicare or Medicaid billing; ergo, the infrastructure is already in place along with access credentials.  Medical providers who wish to avail themselves of the ability to bill Treasury for indigent patients would have to register, but the number of providers currently not registered is a tiny minority of the whole.

  • CMS begins publication of Medicare reimbursement rates for all procedures, drugs and devices.  CMS already has developed and maintains this information so this is simply a publication of existing data and can be done very quickly.  The list may be updated annually as is now the case however with Medicare being a reimbursement source but not a direct billing source as of 1/1/2019 fair notice to all non-Advantage Medicare recipients so they can start shopping providers and services is necessary. (Medicare Advantage customers will have this data from the Medicare Advantage company they select and it may well be different between different Medicare Advantage providers.)

  • Providers must put together their price lists.  They have three months to do so; failure to have and post one as of 1/1/2018 means you're closed!

On 1/1/2018:

  • Providers must post their prices and on demand honor them, along with affirmative consent requirements.  A customer may present him or herself on January 1st 2018 and request the published price.  If they do so then binding, fixed-price treatment per the price schedule and treatment consent rules in the bill must be honored.  Note that all such binding prices must include any consequential events or complications (e.g. those caused by the treatment or the facility in question.)

  • No event caused by a provider or treatment may be billed to the customer.  Alignment of the customer's interest in NOT having an MRSA infection, for example, with the provider's interest in reducing their cost must take place on an expedited basis.

  • "Most favored" nation pricing for drugs begins.  No exceptions, no apologies.  Drug prices drop like a stone.

  • Open testing begins.  If you wish to purchase a test or other diagnostic without invasive exposure beyond a blood draw and not bearing radiation or similar exposure, you may -- for cash and without a prescription or doctor's order.  Since all medical providers must have posted prices on 1/1/2018 you have a list of prices available to you and places to shop from.

  • Auxiliary services must be open.  You can buy said test wherever you want and bring the results to your doctor for consultation or treatment, without limitation.

  • A 365 day period begins during which medical providers may continue to maintain records and coding, but they must also provide human-readable records at the point of service to the consumer.  Since there is basically no medical office in the nation that doesn't have PCs or similar this is trivially done; 3 months is more than enough time to put in place the policy to provide records at the time of treatment to the consumer.

  • CMS and Treasury continue their tax processing and billing integration work with a start date of 365 days hence, or 1/1/2019.  This will be necessary to deal with EMTALA repeal and related from the bill.

  • A 180 day notification period begins during which lifestyle modification is mandatory for those with existing conditions on public medical assistance in order to receive Treasury Billing (and potential medical debt forgiveness at death due to their indigence.)  This specifically applies to Type II diabetes suffers on publicly-funded health programs, although the list of conditions will likely expand.  Those who claim that cessation of eating carbs and PUFAs are not sufficient to bring their blood glucose either under control or materially improve their condition may challenge the individual applicability to them during this time, and must prove same via isolation test (which will likely take less than 48 hours!) with them bearing the cost of the testing in cash if they lose.  Since nearly all of these people either have or should have home instrumentation (e.g. a blood glucose meter), and those who don't can certainly buy one for a few dollars at any drug store including such outlets as WalMart over the counter, they ought to have damn good evidence before attempting to claim an exemption.  These people will also know in advance, or easily be able to determine, if they're going to get caught if they try claiming an exemption and are lying.

  • A 180 day period begins during which Health Insurance companies are required to put together true insurance offerings as required under the Bill to continue selling any health-related policy with effect beyond 12/31/2018.  Since state regulators typically require some notice period (usually six months) this means they must submit same by 6/30/2018.

On 7/1/2018:

  • Medicare and Medicaid recipients with diabetes who have not made the lifestyle adjustments required are cut off from further government funded or transferred billing for their condition until and unless they make the required lifestyle change for at least six months.  They had six months warning and ability.  For the last six months of 2018 the Federal Government, during the remainder of the transition, will see approximately $200 billion in reduced spending. 20% of the adults in the United States have had their pants fall off.

  • Health insurance companies must have posted to the states their catastrophic plan pricing and coverage, along with whatever other offerings they wish to make for the 2019 calendar year.

  • All providers who intend to bill indigent customers must be registered with CMS to provide CMS with sufficient time to process any pending applications and resolve questions prior to 1/1/2019.

On 1/1/2019:

  • Level pricing and quote-before-service (and the procedures for exigent circumstances) for all customers is mandatory.

  • Centralized medical record and coding requirements end and all customers must receive their medical records at the point of service.  The AMA's monopoly on coding revenue (which, IMHO, should have resulted in them being indicted years ago) ends.

  • EMTALA repeal is effective; illegal immigrants no longer can access emergency services at the public's expense.

  • Medicaid repeal is effective at both State and Federal levels; all Medicaid spending ends.

  • Medicare Part "B" repeal is effective.  For "HMO" or "PPO" style coverage post this date Seniors can buy Medicare Advantage policies as they do now but they are not compelled to do so (as they are now.)

  • PPACA repeal is effective; all Obamacare policies, taxes and tax credits end.

  • US Code and CFR amendments to remove the PPACA, Medicaid, and Medicare Part "B" components become effective.

  • Lifestyle requirements continue.  Again, this specifically applies to Type II diabetes where a zero-cost lifestyle change simply comprised of what one eats is sufficient to reduce or eliminate drug and procedure requirements along with the degenerative effects of the condition.

  • All citizens or permanent residents who assert inability to pay a provider now have their bills submitted to Treasury for payment within 30 days.  The customer can choose any provider but the price charged must be level as for anyone else.  Providers who have more than 50% of their customers submitting invoices to Treasury on an annual dollar-billed basis are subject to audit for charges being reasonable and non-collusive (see below.)  The 60 day "no fault cure" policy begins for those who have bills submitted to Treasury due to a claim of inability to pay and tax liens begin to accrue on March 3rd, 2019.

  • For those on Medicare CMS continues to provide the payment rates it will cover to the public for Parts A and D but the customer must submit claim for payment and is responsible for the difference should the price charged be higher than the reimbursement amount.  Medicare customers thus now have an incentive to shop and no restriction on which provider they use for services.  For Medicare customers not using an "Advantage" plan Medicare Part "B" ends both as to the premium collected and benefit disbursed since Part "B" has been deleted.  For Seniors who find themselves unable to afford the portion of payment they must make even with Medicare's typical 80/20 split due to indigence they may assert that indigence just as can a former Medicaid customer and as such low-income Seniors are protected to a much greater extent than is currently the case with Medicare since they enjoy 100% access to all medical providers -- a huge increase in choice compared to today and they have access to the same billing deferral via Treasury that former Medicaid consumers have.

  • For former Medicaid consumers they may assert indigence and thus may access any medical provider as may anyone else who can pay cash.  This is a massive improvement in their access to health services over today as many providers today refuse Medicaid patients (other than via the ER!), but it comes with a tax lien that, should their economic circumstances improve in the future or should they have refundable tax credits, they will be expected to pay.  As a result former Medicaid recipients will, for the first time, have an incentive to both shop and consume medical services wisely.  Many former Medicaid consumers will choose to pay cash, especially for drugs, since a large variety of drugs will be available at monthly costs similar to that of a cup of coffee from McDonalds, but for services where they cannot afford to pay directly the safety net will be available via the Treasury.

  • Private and corporate-funded catastrophic plans, along with any new "PPO" type plans, take effect.  
    With price transparency and no billing obfuscation or "hiding" insurance costs drop like a stone.  Typical "catastrophic" coverage will be available for a few hundred dollars a year.

  • Direct and hidden billing of insurance companies of all sorts, along with "explanation of benefits" nonsense and the implied extortion attendant with same ends.  The customer is billed at a level price as with all other customers for the same good or service; whatever insurance they may have, whether it covers the service(s) provided and how much it will cover is between only the customer and the insurance company.  Collusive behavior, hidden pricing, performance of procedures without prior consent (except in exigent circumstance) and price-fixing disappears entirely.

  • For the first time in 30 years real competition breaks out in the medical field -- not just on price but also on quality of service.  With cost and outcomes exposed customers will be able to research and choose just as they choose a cellphone or automobile today.
  • Non-citizens/non-green-card holders have no right to treatment of any sort nor does any provider have liability for refusal to provide it without payment.  Non-citizens and non-green-card holders (visitors, illegal immigrants, etc) may purchase services and products for cash should they be willing and able to do so.

  • State CON laws and similar are all pre-empted.

  • Mandatory enforcement of 15 USC and the civil rights of action for individual consumers against medical providers for price-fixing, collusion and similar offenses begins.  Note that providers who collude or attempt to defraud Treasury and allegedly low-income customers claiming indigence (who really aren't) are subject to mandatory prosecution and punishment under the Bill.

And.... it's done.

The medical scam has ended.

There are no more Federal Deficits; in fact, we run a perpetual budget surplus and begin paying down the national debt.

Your standard of living starts going up every year even without a raise by about 1% each and every year instead of going down as it does today.

We no longer pay for illegal immigrant medical care at all from public funds.

You get a price that is the same as everyone else for the same good or service in the medical field just as you do at the grocery store, the gas station and the local restaurant.  The outrageous price discrimination (sometimes as much as 10, 20 or even 100x or more) served up on some people -- discrimination that usually bankrupts the consumer in question -- ends permanently.

You know exactly how much you will be billed for a medical procedure, drug or device before you choose to undergo that procedure or accept the treatment.  Your insurance company, if you have one, will have to make available what they will pay and the hospital, doctor or pharmacist must tell you what they will charge.  You will thus know what the total cost to you will be -- before you sign a consent form or have a procedure done.

If you get an infection from a hospital you cannot be billed for the drugs and time to treat that which they gave you due to their incompetence.  That risk and cost is finally on them, which will drive innovation and greater care to prevent such infections that harm and even kill Americans today.

If you can't pay you will still be treated and can still choose your doctor, but you will be responsible to cover the (much more-reasonable) bill if you become able to pay it in the future.  This will permanently put an end to the practice of poor people using the ER like a doctor's office since this sort of abuse will no longer be advantageous compared against going to a regular physician.

Drug prices fall in the United States by at least half (and more likely by 80% or more on an average basis) and for those with chronic diseases that have been sucking down drugs and procedures while refusing to make simple, zero-cost lifestyle changes they finally have a strong incentive to both do so and have their health improve materially at the same time.

There will be no more $300,000 snake bites, $150,000 scorpion stings and $1,000-per-stitch fees that get lumped on you without any way to prevent them when something bad and random happens.  Any medical provider who tries it will find their bill void and they will be prosecuted for fraud.

Obesity and diabetes incidence falls dramatically since it is now strongly in everyone's best interest to practice simple changes in their lifestyle.  An epidemic has broken out -- of people having their pants fall off.  It's a good epidemic and America is noted and lauded as being the first nation to have reversed the increasing rate of obesity and Type II diabetes.

The nation becomes far more productive as the cost of employing someone drops by a solid 15% and America becomes the place to put a multi-national business.  In short labor expense drops tremendously and productivity soars.

If you're not a currently-overpaid administrator you get a raise; for a typical median family it will be about 10% immediately as your employer's cost of having you on staff will drop by at least that amount.  For the average family of four you will see, net of your medical expenses, roughly $7,000 richer in cash spending power after tax each and every year.

Those who are currently-overpaid administrators in health care will find jobs in other sectors.  It may take a while but it will happen, as the economy comes roaring back with the newfound efficiency and productivity improvement from deleting the fraud currently consuming almost one dollar in five.

State and local pensions and budgets stabilize and, over time, taxes come down at the state and local level as the levies put in place to try to stay ahead of the pension destruction are no longer necessary.  Specifically, property taxes decrease materially which will cause both the cost of owning a house and rents to decline.

Your car insurance gets cheaper as your liability policy, much of which covers medical expenses coming from accidents where you are at fault, along with uninsured motorist coverage, will decrease dramatically in cost.

Federal Spending will contract to something similar to this -- and I note that this chart presents a pessimistic estimate. We would almost-certainly do better than what is depicted here and, I remind you, both Seniors and indigent citizens would receive better care and more choice than they have now.

And we prevent this -- our federal debt -- from blowing up in our face as the CBO currently predicts -- an event that, if it occurs, will destroy the nation just a few years from now.

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