The Bottom Line: So-called 'benefits' of the health care bill are authoritative and fiscally irresponsible
Dan Clements
Issue date: 11/2/09 Section: Opinion
Speaker of the House Nancy Pelosi unveiled Thursday the House bill for health reform. This bill is another major step toward the Obama administration's greatest domestic policy promise. The primary goals of congressional leaders and the White House consist of expanding insurance coverage, reducing costs for those who are insured and improving quality. However, if reform of the sort described in this bill is made into law, the current problems of the health care industry will remain unaddressed, newer problems will be created and the benefits will be negligible compared to these vast costs.
In order to achieve said goals, this bill calls for the creation of a government-run insurance option, subsidies for individuals to buy insurance, mandates for businesses to provide insurance to their employees, individual mandates to get coverage and more funding for Medicaid and SCHIP. The total estimated increase in spending comes to about $1.1 trillion. To pay for this, the bill includes new taxes for higher-income individuals, penalties for businesses who fail to provide full coverage and individuals who fail to attain coverage, and cuts in Medicare.
Most of the new spending is aimed at achieving the goal of expanded coverage -but is this the biggest problem? Many of our leaders in Congress have claimed that "46 million Americans do not have health insurance," citing a survey conducted by the Census Bureau and the Bureau of Labor Statistics. However, of those 46 million, 18 million are making more than $50,000 a year and probably can afford health insurance, but, for whatever reason, opt not to. According to a 2007 New York Times article, millions are eligible for public programs such as Medicaid or SCHIP, but are not enrolled. Also, many of the uninsured are temporarily uninsured, but will get insured in the near future. Only about 8 million people who cannot afford insurance and are not eligible for public assistance will go uninsured for two years or more, as found by a 2002 study conducted by BlueCross BlueShield.
In order to achieve said goals, this bill calls for the creation of a government-run insurance option, subsidies for individuals to buy insurance, mandates for businesses to provide insurance to their employees, individual mandates to get coverage and more funding for Medicaid and SCHIP. The total estimated increase in spending comes to about $1.1 trillion. To pay for this, the bill includes new taxes for higher-income individuals, penalties for businesses who fail to provide full coverage and individuals who fail to attain coverage, and cuts in Medicare.
Most of the new spending is aimed at achieving the goal of expanded coverage -but is this the biggest problem? Many of our leaders in Congress have claimed that "46 million Americans do not have health insurance," citing a survey conducted by the Census Bureau and the Bureau of Labor Statistics. However, of those 46 million, 18 million are making more than $50,000 a year and probably can afford health insurance, but, for whatever reason, opt not to. According to a 2007 New York Times article, millions are eligible for public programs such as Medicaid or SCHIP, but are not enrolled. Also, many of the uninsured are temporarily uninsured, but will get insured in the near future. Only about 8 million people who cannot afford insurance and are not eligible for public assistance will go uninsured for two years or more, as found by a 2002 study conducted by BlueCross BlueShield.
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