All you need to do is turn on the television to realize that the health care debate has fueled an outpouring of passionate public debate. While both the House of Representatives and the Senate continue to work on legislation that will attempt to reform the nation’s health insurance system, Americans have come out in force to express their opinions regarding the measures being proposed on Capitol Hill.
The three most divisive issues in the health care debate include a “public option,” or federal government health plan; employer mandates; and the mechanism for paying for this package. Many believe the advantages a public plan would have over private providers would be insurmountable, ultimately resulting in the elimination of anything but the government plan.
Government-imposed employer mandates cause similar levels of angst. It is not so much the idea of requiring employers to provide coverage that is troubling, but rather the fact that the federal government will be dictating to employers how to run their businesses and what benefits to provide. Moreover, this proposal could take away business owners’ competitive advantage when hiring employees. For example, if a business pays 100 percent of its employees’ health benefits, this proposal would effectively eliminate that competitive edge in attracting top talent.
Finally, paying for health care reform will be a major challenge. Cost estimates are in the $1 trillion to $1.5 trillion range, although they vary according to which of the many proposals is being considered. President Obama has vowed to make the package revenue-neutral, meaning he needs to raise upwards of $1 trillion in revenue to offset the cost. The easiest way to do this, and the only one being seriously discussed at this point in time, would be to raise taxes. In particular, the discussion has centered on raising taxes on the “wealthy,” with the definition of “wealthy” continuing to be a moving target. It is widely held that this tax hike would have a profoundly negative impact on small businesses and job creation.
However, the astronomical cost of this bill is even more troubling when considering what it is attempting to do or, more aptly, to whom it is attempting to provide coverage. The self-professed goal of President Obama and the Democrats in the House and Senate is to provide health coverage to all Americans.
Current estimates put the number of Americans without health insurance at approximately 47 million people. Of those 47 million, approximately nine million are believed to be undocumented workers. Another 11 million are eligible for Medicare/Medicaid, but have not enrolled for various unknown reasons. Still another 15 million earn sufficient income to afford health insurance, but have chosen not to purchase it. That leaves approximately 11 million people who do not have health insurance, are not eligible for Medicare/Medicaid and cannot afford to buy their own coverage.
To put that number in perspective, the current U.S. population is nearly 310 million people. So in essence, this is a health care plan designed to provide health insurance to the 3.5 percent of Americans who can’t afford it—at the bargain price of $1 trillion.
If Congress is truly committed to reducing the cost of health care for Americans, it must be just as committed to ensuring that America’s businesses—small businesses in particular—are not saddled with additional taxes and fines or forced to abide by unreasonable government mandates.
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Wednesday, February 8, 2012