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Cars for Clunkers: A Microcosm to Health Care

You’ve seen the Cars for Clunkers program dished out by the Obama administration. Turn in your “gas guzzler” and get a rebate up to $4500 towards a new fuel efficient vehicle. While it is a worthy goal, it illustrates the ineptness of the government provided programs.

In today’s WSJ, it was reported that officials are trying to find additional funding for the program because consumer demand has already exhausted the $1 billion budget, even considering tapping into the TARP program.

This cars program is a microcosm of what would occur if Democrats passed the universal health care bill including the public option. How is the cars program a microcosm you may ask? Say if a insurance policy will cost you $15000 for the year from a private company, but in comparison, the same insurance policy is provided to you from the government, with a $4500 subsidy, which would most Americans choose? This demand would outstrip what funding was provided for it, and thus we would end up with another Social Security, Medicare, and Medicaid disaster on our hands, where we’re robbing Peter and his kids to pay Paul, Mary, and whoever else.

The House passed an additional $2 billion for the program today. Where is that to come from? Apparently, the porkulus bill according to Hoyer (D-MD), which is our money. Is this a precursor to what will happen when the public option runs out of funding for doctors, hospitals, etc?

Also the demand would overwhelm suppliers of health care. Today, car dealers are turning away buyers, pretty incredible for a struggling industry, because they’re afraid they might not get paid for their taking in the clunkers.

“Adam Lee, owner of Lee Auto Group in southern Maine, had stopped accepting clunkers at four of his dealerships because he was concerned the funds would run out. Mr. Lee said his firm accepted 100 clunker trades and is owed $450,000 from the government, none of which has been disbursed.”

Much like Mr. Lee, Why would a doctor continue to accept government sponsored patients, if the government is having trouble paying for the service.

This situation has already occurred in Massachusetts, where I reside, where RomneyCare has turned into a $1.3 billion moneysucking nightmare, from what started off with a $630 million budget, and where I must wait 40 days to see a dermatologist then another 70 for a follow up visit.

So let this serve as a prior notice to those that long for a public health care option or let car salesman Rob Bojaryn say it perfectly: “If they can’t administer a program like this, I’d be a little concerned about my health insurance.”

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