Cost Endangers Health Insurance Reform

President Obama's plan for health care reform hit another roadblock this week following the cost estimate released by the Congressional Budget Office. The $1 trillion price tag attached to the Senate version by the CBO did not include the President's much supported idea of a public health insurance option. Obama and other top Democrats claim a government-run health insurance option is needed to create competition.

The concern over cost is growing, as a new poll released today by CBS and the New York Times indicates a majority of Americans think it's more important to deal with growing deficits than it is to continue government stimulus spending. The public health insurance option could become a derailing factor for the Democrats' attempt at reform. The American Medical Association and private insurers expressed strong concern against a government-run plan last week.

Reforming health insurance also includes the possibility of mandating employees fund at least a portion of workers' coverage. Business leaders warn this mandate would drive down wages and lead to job loss as business owners would be forced to layoff some workers to fund others' coverage. Democrats accuse these business owners of being selfish and uncompromising.

Increasing taxes on tobacco and sugar are part of the current discussion for health insurance reform. Consumers could be forced to pay higher prices for food and drinks high in sugar, with what is considered high being set by politicians in Washington. Some Democrats claim this would also cut down on health care costs by pushing people to eat healthier foods.

A public health insurance option also threatens private insurance companies. The government-run plans could essentially set plans as low as Washington wants to. President Obama has assured Americans the public plan would be forced to follow the same rules private companies do and is needed to create real competition in the insurance industry. With more than 1,000 private insurers nationwide, the President has not explained how adding one more insurer to the group, which he claims will act the same way private insurers do, will increase competition.

The White House wants a bill with a government-run public health insurance option on President Obama's desk by October. The closer to the end of the year we get the more trouble Democrats will have in getting their members to sign onto such a reform bill. In the coming months many lawmakers will again be campaigning for 2010's midterm elections. The rising cost for public health insurance reform and the health care industry as a whole is making lawmakers on both sides of the aisle nervous. The House and Senate are both working to have bills in order to begin consolation by August.