John Goodman on Magnitude of Health Problem
By David Henderson
We now know how many people have the problem most often cited as the reason for last years’ health overhaul legislation. Answer: 8,000
No, that’s not a misprint. Out of 310 million Americans, only 8,000 people have the problem given as the principal reason for spending almost $1 trillion, creating more than 150 regulatory agencies and causing perhaps 150 million or more people to change the coverage they now have.
This is from health economist John Goodman’s latest blog post, “Health Problem Quantified.” The whole thing is eye-popping.
John, who has also done some serious work on public choice issues, lays out how the basics of public choice imply that Obamacare should be easier to repeal than most laws. The reason: the few winners are unorganized whereas at least some of many losers are organized.
One thing that doesn’t seem to compute is how the state governments could run out of money on this program, given that 8,000 people have $5 billion to share. That works out to $625,000 per person, which seems, shall we say, high. Could a substantial portion of that $5 billion be for administrative costs? Or does the $5 billion cover a few years? I’m not sure.