07.24.09
The current health insurance system is a job killer
Here’s the part that’s get’s talked about very little about what’s wrong with out current health insurance system, Study Links Rise in Health Care Costs to Job Losses.
In a first-of-its-kind study, the non-profit Rand Corp linked the rapid growth in U.S. health care costs to job losses and lower output. The study, published online by the journal Health Services Research, gives weight to President Barack Obama’s dire warningsabout the impact of rising costs if Congress does not enact health care reform.
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This study provides some of the first evidence that the rapid rise in health care costs has negative consequences for several U.S. industries,” said Neeraj Sood, the study’s lead author and a senior economist at RAND. “Industries where more workers receive employer-sponsored health insurance are hit the hardest by rising health care costs.
The conclusion of the report is, “Excess growth in health care costs is adversely affecting the economic performance of U.S. industries.”
That’s why in his press conference this week President Obama made sure he linked fixing the current health insurance system in our country to fixing the overall economy.
Just a broader point — if somebody told you that there is a plan out there that is guaranteed to double your health care costs over the next 10 years, that’s guaranteed to result in more Americans losing their health care, and that is by far the biggest contributor to our federal deficit. I think most people would be opposed to that. Well, that’s the status quo. That’s what we have right now.
So if we don’t change, we can’t expect a different result. And that’s why I think this is so important, not only for those families out there who are struggling and who need some protection from abuses in the insurance industry or need some protection from skyrocketing costs, but it’s also important for our economy.
And, by the way, it’s important for families’ wages and incomes. One of the things that doesn’t get talked about is the fact that when premiums are going up and the costs to employers are going up, that’s money that could be going into people’s wages and incomes. And over the last decade we basically saw middle-class families, their incomes and wages flatlined. Part of the reason is because health care costs are gobbling that up.
Which is why it’s so hard to believe that Democrats, (Yes Democrats!!), are holding up health insurance reform, The Can’t-Do Blue Dogs.
Watching the centrist Democrats in Congress create more and more reasons why health care can’t be fixed, I’ve been struck by a disquieting thought: Suppose our collective lack of response to Hurricane Katrina wasn’t exceptional but, rather, the new normal in America. Suppose we can no longer address the major challenges confronting the nation. Suppose America is now the world’s leading can’t-do country.
Every other nation with an advanced economy long ago secured universal health care for its citizens — an achievement that the United States alone finds beyond the capacities of mortal man. It wasn’t ever thus. Time was when Democratic Congresses enacted Social Security and Medicare over the opposition of powerful interests and Republican ideologues. In fact, our government used to actually pave roads, build bridges and allow for secure retirements by levying taxes on those who could afford to pay them.
To today’s centrist Democrats, this has become a distant memory, a history lesson they cannot grasp. The notion that actual individuals might have to pay to secure the national interest appalls them. In the House, the Blue Dogs doggedly oppose proposals to fund universal coverage by taxing the wealthiest 1 percent of the nation’s households. Their deference to wealth — whether the consequence of our system of funding elections or a byproduct of the Internet generation’s experience of free access to information and entertainment — is not to be trifled with.
Centrist Democrats’ opposition to health reform verges on the incoherent. A caucus (the Blue Dogs) formed ostensibly to promote balanced budgets now disapproves of the proposed taxes that would cover the expenses of the new programs. The congressional centrists say, commendably, that they want to squeeze more economies out of the system, but they oppose giving more power to an agency that would set the payment scales for physicians.
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Why Democrats of any ideology want to cripple their own president in his first year in office, and for seeking an objective that has been a stated goal of their party since the Truman administration, is a more mysterious matter.
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But the big picture here, of which the resistance to reforming health care is just one element, is our growing inability to meet our national challenges. Almost all of the major nations with which we trade, for instance, have quasi-mercantilist policies that lead them to champion their own higher-wage growth industries, often in manufacturing. In America alone are such policies considered anathema. In consequence, as the Alliance for American Manufacturing reports in a new book, we shuttered 40,000 factories from 2001 through 2007 — the years, ostensibly of prosperity, between the past two downturns. The diminution of manufacturing, which employs just 11 percent of the U.S. workforce, may please Wall Street, which looks with disfavor on decent-wage domestic production, and Wal-Mart, which tripled its purchases from China (from $9 billion to $27 billion annually) during roughly the same years those American factories closed, but it poses a clear threat to the nation’s economic, and even military, power.
But act on behalf of the nation as a whole, even if it means goring Wall Street’s or Wal-Mart’s oxen? Perish the thought. Pass a health-reform bill that will cover 45 million uninsured Americans and slow the ruinous growth of health-care spending? Not if somebody, somewhere, actually has to pay higher taxes. Hey, we’re America — the can’t-do nation.
As our former president might put it, Heckuva job, Brownies.
And to tie it back to the Rand study, another reason Wal Mart has done so well is they don’t offer the vast majority of their workers ESI. Most Wal Mart employees either don’t have insurance or make so little they qualify for government assistance. Health insurance reform must be done now. If not now then when?
It’s key for all Democrats at the national level to remember they were elected to fix health insurance, not keep the current system in place. If they don’t fix all of them will pay at the polls. Americans need to be reminded that their government can fix things. Not fixing health care may cause many Americans that voted Democratic in 2008 to lose faith in their elected officials, and not show up and vote again in 2010. It’s also key for Democrats to remember that those opposed to fixing health insurance aren’t afraid that it will do something bad. They’re afraid it will work, and then they’ll be in the majority for much, much longer.