Paul Krugman is right about health care. Please allow me the liberty of bolding portions of his piece, HELP Is on the Way, with which I strongly agree:
Now, about those specifics: The HELP plan achieves
near-universal coverage through a combination of
regulation and subsidies. Insurance companies would be
required to offer the same coverage to everyone,
regardless of medical history; on the other side,
everyone except the poor and near-poor would be obliged
to buy insurance, with the aid of subsidies that would
limit premiums as a share of income.
Employers would
also have to chip in, with all firms employing more than
25 people required to offer their workers insurance or
pay a penalty. By the way, the absence of such an
“employer mandate” was the big problem with the earlier,
incomplete version of the plan.
And those who prefer not
to buy insurance from the private sector would be able to
choose a public plan instead. This would, among other
things, bring some real competition to the health
insurance market, which is currently a collection of
local monopolies and cartels.
The budget office says
that all this would cost $597 billion over the next
decade. But that doesn’t include the cost of insuring the
poor and near-poor, whom HELP suggests covering via an
expansion of Medicaid (which is outside the committee’s
jurisdiction). Add in the cost of this expansion, and
we’re probably looking at between $1 trillion and $1.3
trillion.
There are a number of ways to look at this
number, but maybe the best is to point out that it’s less
than 4 percent of the $33 trillion the U.S. government
predicts we’ll spend on health care over the next decade.
And that in turn means that much of the expense can be
offset with straightforward cost-saving measures, like
ending Medicare overpayments to private health insurers
and reining in spending on medical procedures with no
demonstrated health benefits.
So fundamental health
reform — reform that would eliminate the insecurity about
health coverage that looms so large for many Americans —
is now within reach. The “centrist” senators, most of
them Democrats, who have been holding up reform can no
longer claim either that universal coverage is
unaffordable or that it won’t work.
I’d be very surprised if this passes, or if we end up with anything approaching effective reform. As a future small business owner (fingers crossed), I would be happy to offer employees insurance, as required in this bill. Obviously, though, I don’t fully understand the repercussions on business of having to offer this insurance. However, the playing field is leveled when all businesses must offer insurance.