The wheels for economic recovery have been set into motion, or at least are being lubricated, with the signing of the American Recovery and Reinvestment Act of 2009 by President Barack Obama on February 17, 2009. The plan was put together rather quickly behind closed, or at best ajar, doors.
The bill is designed to stimulate the economy, or as it’s phrased officially “to create jobs, restore economic growth, and strengthen America’s middle class through measures that modernize the nation’s infrastructure, enhance America’s energy independence, expand educational opportunities, preserve and improve affordable health care, provide tax relief, and protect those in greatest need, and for other purposes.”
Try saying that in one breath although I would be more impressed with achieving all the objectives in one lifetime.
There is a lot of money set aside for heathcare reform, with serious emphasis on health information technology. Here are the highlights:
- More than $140 billion in healthcare spending
- Increase in federal payments by $87 billion to States in order to prevent Medicare cuts
- $25 billion to cover 65% of the COBRA premium costs for lower-income workers
- $19 billion in grants and incentives for companies and medical practices to buy health information technology
- $10 billion to increase the research budget of the National Institutes of Health (NIH) on top of the agency’s $29 billion budget
- $1.1 billion dedicated to comparative-effectiveness studies at NIH and other agencies
The government is planning to hand out millions in grants to States and “State-designated entities” to promote the uptake of health information technology. Dozens of committees, even new federal agencies, are being formed to carry out the administration’s new policies. Comparative effectiveness research, where cheaper therapies are weighed against more expensive ones, will be the new buzzword. This will set the stage for the government to exert more influence over the medical decision making process, steering patients towards cheaper therapeutic alternatives that are deemed as good as their more expensive counterparts, or as it’ll most likely evolve, just good enough.
Roy Porter, the late British historian, starts his 1999 book “The Greatest Benefit to Mankind: A Medical History of Humanity” reflecting on the strangeness of our times. He observes the paradox of being healthier than ever but more anxious about our health (remember that life expectancy at the turn of the 20th century in the Western world was in the 40’s). Would the rationing of healthcare resulting from expanding coverage in the face of a shortage of healthcare providers and denying expensive therapies make us even more anxious? Maybe so, but our psychological health, and perhaps even our physical one (if you’re the cancer patient who is denied the “expensive” chemotherapy) are now secondary to the economic health of the country.
So let’s hope that the American Recovery and Reinvestment Act of 2009 accomplishes what it intends to do, i.e. to “create jobs, restore economic growth, and strengthen America’s middle class through measures that modernize the nation’s infrastructure, enhance America’s energy independence, expand educational opportunities, preserve and improve affordable health care, provide tax relief, and protect those in greatest need, …”



