Since discussion of reforming the health care industry began Obama has continually stated Americans will be able to keep their private health insurance if they so desire. The President has noted that Americans without coverage or those that are unhappy with their present coverage will have the option of signing up for the government-run plan. The creation of this public plan has ignited a firestorm among members of the American Medical Association and those in the private insurance market.
Members of the AMA are divided over whether or not to support, as a group, a government-run public option. Some members argue a public health insurance plan is needed to help some of the nation's estimated 47 million uninsured get coverage. Other members of the AMA, along with the insurance companies, are worried a government plan will drive private insurers out of business.
The ability to set rates as low as they want is what worries those opposed to a government-run plan. Just as Medicare and Medicaid bleed money annually, there is little doubt the proposed public plan would be any different. There is no incentive to create a profit out of a government-funded plan, since the very nature of the program means it will never run out of money nor go out of business. The creation of false price floors, that being the setting rates below which the private market can support, will create a migration of consumers from private companies to the government plan offering lower rates.
Some view this as a good idea. Proponents of the public option claim the government will set rates to levels American consumers can all afford and have access to. These advocates declare the government will not be running your health care, but simply funding the insurance side of care. Unfortunately, controlling health insurance payments will control how health care is delivered and what services will be paid for.
Initial drafts of health care reform bills include mandating health insurance coverage. The legislation calls for all Americans to be insured by law. Lawmakers are also proposing forcing business to at least partially fund insurance coverage for workers or face fines.
How to fund the $1 trillion price tag for health care reform is now the question of the day. That's the price the non-partisan Congressional Budget Office put on the current plan for reform. The CBO estimate did not include the cost of implementing the public health insurance option.
During the Presidential campaign President Obama chided opponent John McCain after McCain hinted at the idea of taxing health benefits. Now faced with a rising deficit and pressure to act quickly on reform the Obama administration is refusing to say it will not sign a bill with such taxes. Additional taxes on tobacco and sugar are other funding considerations.
The nation's health care system does need changes. Steps to help bring down rapidly rising health insurance rates are needed. However, a quick review of current government-run programs and their ballooning costs begs the question why is more intervention from Washington even considered. As government-run schools, health clinics, health insurance, and welfare programs falter nationwide, Americans need to ask themselves, are they ready for more politicians directing their health care?
Posted June 17th, 2009 by Kyle Godfrey
