Private sector velocity!? In 2011, IBM CEO, Palmisano offered the Obama Administration to fix Medicare and Medicaid to the tune of $900B for FREE. He was turned down twice!

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IBM Watson

This is mind boggling to me.  IBM’s CEO offering the Obama Administration software to fix Medicare/Medicaid for free…$200B in fraud, plus remedies for other healthcare concerns to the tune of $900B!  Reportedly the Obama Administration refused this offer not once but twice!

The obvious reason is Obama is running for re-election on Obamacare.  His reelection depended on the hype of the success of Obamacare as a means to reduce Medicare and Medicaid fraud.  It is one of their five major talking points of their Medicare.gov website.  “The life of the Medicare Trust fund will be extended to at least 2029—a 12-year extension due to reductions in waste, fraud and abuse, and Medicare costs, which will provide you with future savings on your premiums and coinsurance.”  Why would you want someone in the private sector solving the problem?

Plus. if you were a freeloading on Medicare or Medicaid, would you vote Republican?

I had to dig to find this original video, because I was very skeptical.., scroll to two minutes into the video. My jaw dropped by the end.  VIDEO —> http://on.wsj.com/193939f

HERE’S THE NARRATIVE…
The video opens with the Journal’s Alan Murray saying: “When President Obama was elected, you started spending a fair amount of time at the White House.”

Palmisano: “Yes, I did.”

Murray: “What was that all about?”

“Well,” Palmisano replied, “part of it was the administration was reaching out to the business community. I mean, I was one of many, obviously … around economic (issues)… So we were having lots of input, lots of exchange. That’s what we all were working on at the time.”

Asked how he thought the White House visits had turned out, Palmisano replied: “We haven’t made any progress. It doesn’t mean there hasn’t been a lot of interaction.”

Murray: “Well, what’s the point of interaction if it doesn’t lead to progress?”

Palmisano: “You’d have to ask the people who aren’t progressing.”

He added, We’ve done tons of work, and for whatever sets of reasons, we haven’t been able to establish, be in sync with, the priorities.”

Palmisano offered an example: “We — and I’m fairly confident about this one because it required no legislative change — we could have improved quality and reduced the costs of the health-care system by $900 billion… It was self-funding. You could have insured anybody you wanted to, illegal aliens, dogs, cats, ponies, whatever, right? And the stuff was simple. Did not require any big legislative change.”

About $400 billion of the reduced costs could be realized through negotiating discounts with drug companies, just as IBM negotiates its own discounts, he said. “Buy a nationwide discount,” he said. “Just like pharmaceutical companies sell to us on a nationwide discount. It’s no different. I said, ‘Take the IBM discount! Take the IBM discount.’ ”

Another example of savings: “Two hundred billion in fraud. That was a 3 percent improvement, by the way. This wasn’t transformational. … There’s so much fraud in the system — 3 percent and then Year 7 was 8 percent, Year 5 was 5 percent. It’s 200 billion.”

Murray: “And why didn’t they do that? Is there a fraud –”

Palmisano: “I said we would do it for free to prove that it works. They turned us down. You’ll have to ask them… Free. Free wasn’t good enough.”

I didn't know!

I didn’t know!

Murray asks again: Why?

Palmisano replies, “I think what it is, not to be judgmental about these things, I really do think what it is that we weren’t aligning with the priorities. … the priority at the time, if I stay on my example of health care, was not to reduce costs and improve quality. It was to provide insurance and coverage for more people. That was our priority in the line. All we said, if you did this you could fund the priority without increasing the deficit, taking taxes up. And we couldn’t sell the case.”

We have all paid a huge price for the 2012 election bid made by Barack Obama.

About Idea Capitalist
Family guy and entrepreneur. Small Business owner. NFIB Leadership Council member. Serial blogger.

2 Responses to Private sector velocity!? In 2011, IBM CEO, Palmisano offered the Obama Administration to fix Medicare and Medicaid to the tune of $900B for FREE. He was turned down twice!

  1. TAR says:

    This is mind boggling to everyone! However it does make sense because this is about control! Power, power by the federal government. This is not about the private sector being able to come up with a solution, do it for less and do it more efficiently. Liberalism is about control, bigger government and more dependency. Obama and company fit that bill well!

    Like

    • Obama’s signature legislation was Obamacare. His reelection depended on the hype of the success of Obamacare. One of their five major talking points of their Medicare.gov website. “The life of the Medicare Trust fund will be extended to at least 2029—a 12-year extension due to reductions in waste, fraud and abuse, and Medicare costs, which will provide you with future savings on your premiums and coinsurance.” If you are Obama, why would you want someone in the private sector solving the problem? Plus, if you are were a recipient of either program or freeloading on Medicare or Medicaid, why would you vote Republican?

      Like

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