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But what about laid-off Private Health Insurance employees? |
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Written by Administrator
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Friday, 07 December 2007 04:29 |
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PHIMGC member Jay describes how the United States economy will absorb the health insurance workers who are laid off after the move to National Single Payer Healthcare reform:
1) A very significant number of those working for the insurance companies are doctors and nurses. If we were to get single payer enacted, there would be an upsurge of people who need medical care who's needs have been going unmet, and those skilled professional would be much in demand to cover the increased demand.
2) A number of the insurance companies' administrative staff would be needed in the administration of the public program.
3) Insurance companies are diversified- they provide many types of insurance, and the skills involved in risk assessment and claims adjusting, etc, are transferable to other types of insurance provision. These companies are essentially financial services companies, not wedded to only insurance, and there would be need for revision of many people's retirement plans in view of changed health care cost requirements, so a number of financial services people would be needed for that purpose.
Health insurance is the LEAST profitable of all types of insurance, so companies can also diversify into terrorism related services, global warming related dangers, and other areas in a changing world.
The main point is that these companies are known for their flexibility and innovation in creating new financial services in a globalizing world where Americans face increasing financial risk and insecurity, and I am certain they have a plan B for generating profitable services that would involve many of their current skilled staff. It might be an incentive for them to create even more profitable services than health insurance has ever been, with less of the bad publicity that health insurance generates.
4) For many years the main reason that business, especially small business that employees the majority of workers in the US), gives for their inability to expand and hire new workers is the cost of health insurance. Additionally, job lock is the primary reason new entrepreneurs give for being constrained in their dreams of starting a new business. They cannot leave their health insurance benefits, and cannot buy health insurance on the individual market because of excessively high premiums or pre-existing condition exclusions. There is great reason to believe the upsurge in new business start-ups would provide a very large number of new local jobs, less vulnerable to out-sourcing.
5) If we decided to use a Value Added Tax (VAT) as a partial revenue source for a single payer program it would add cost to imported goods (the same way a tariff would have), and would reduce the economic incentive for our current businesses to outsource their facilities for cheaper production costs overseas. They would have to pay more to get their goods back into the country. More jobs would stay here in the US.
The downside to the VAT is that it is more regressive than an income tax, or payroll tax, because it adds to the cost of consumer goods. It could be carefully designed to be more of a luxury tax, or "sin" tax, as they do in France, by excluding food and other basic consumer goods that cost more for the poor and middle class.
In compensation for the greater regressivity of the VAT we would gain jobs, and slow outsourcing. Other countries have a VAT, only the US does not. We could use the income tax in addition to the VAT to make funding single payer more progressive, this is how France finances their single payer system.
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Last Updated ( Sunday, 09 December 2007 04:23 )
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Supreme Court Allows Retiree Benefit Cuts |
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Written by Administrator
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Tuesday, 25 March 2008 18:03 |
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The LA TIMES reports: The Supreme Court on Monday gave employers a green light to reduce health benefits for millions of retirees who turn 65 and become eligible for Medicare. The justices turned away a legal challenge from AARP, the nation's leading senior citizens lobby, which had contended these lower benefits for older retirees violated the federal law against age discrimination.
The court's action upholds, in effect, a rule adopted last year by federal regulators that says the "coordination of retiree health benefits with Medicare" is exempt from the anti-age-bias law.
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Employers in California, large and small, say benefits for retirees already have become a casualty of soaring medical costs.
"In some cases, it's become a millstone around their necks," said Jack Kyser, chief economist of the Los Angeles County Economic Development Corp. "Corporations aren't all heartless, but in many cases, you're competing with multinational corporations that don't have quite the obligations that domestic firms have." ... David Sloane, AARP's senior vice president, said the court battle shows a need for Congress to take up healthcare reform. "We have an entirely voluntary system" where employers provide healthcare if they choose to, he said. "This is the fundamental problem we are dealing with. One way to solve the problem would be for Congress to pass comprehensive healthcare legislation." The Supreme Court gives another gift to big business - quelle suprise! Anybody notice a trend?
The point on international competitiveness is valid however, and a reason I often cite to sell the single payer system. The employer based system puts a burden on labor intensive industries like the automotive industry. This becomes a jobs issue. Under a single payer system healthcare costs are shouldered by all via progressive taxation and healthcare costs are not an albatross around various industries necks. This SCOTUS ruling is a blow to people who will lose healthcare coverage provided by employers, which often times is more comprehensive than the benefits provided by Medicare. That's why HR-676 is the "Expanded and Improved Medicare for All Act." Medicare has had a target around it's neck for decades and so we first have to to undue all the damage inflicted upon it by anti-government types in Congress, for example the Medicare "part D (for disaster)" fiasco. We also need it to reflect modern medical realities. Like for example that it is cheaper (and better for the patient) to pay for a nurse to come in a couple times a week, then to have someone in an inpatient facility, etc. The big winner here is the health insurance profiteers because people at this age are so expensive to cover and now Uncle Sam (meaning you and me) will be forced to cover those expenses. And the employers will win too, just not as much as the insurers. This ruling will have some interesting consequences. It's easy to see it exacerbating the funding shortage that Medicare is due to encounter in the future. When Bush tried to move on Social Security Privatization ("personal accounts"), some of the more honest TV commentators were pointing out that the chicken-littlism over supposed SS funding "crisis" was a little puzzling since its peanuts compared to what looms over on the Medicare side of things (also puzzling because that Bush's idea would have made the "crisis" worse.) This will probably make it harder for anti-government factions in the Congress to screw with Medicare because there will be more people in it, people who are pissed off because they had better coverage under thier employer plan, who will hopefully get active in ensuring that Medicare is preserved and protected, if not improved and expanded to all under HR-676.
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Last Updated ( Tuesday, 25 March 2008 19:00 )
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PHIMG Book Discussion -- Ten Excellent Reasons for National Healthcare |
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Written by Administrator
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Friday, 19 December 2008 07:21 |
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Wednesday, Feb. 4th, 2009 7:30 PM 25 W. 43rd Street, 18th Floor |
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Al Gore supports Single Payer |
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Written by Administrator
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Monday, 28 April 2008 16:36 |
This is old news, but good news. He posted this as a video on to his website Current.com, and delivered it extemporaneously from what I can gather:
“I strongly support universal, single-payer, government-provided — or, government-funded — healthcare. It doesn’t mean the government runs it, it has competition among the different providers. But I just think that we’ve long since reached the stage that its immoral to put people in a situation where they cannot get the medical care they need because their incomes aren’t high enough. I think it ought to be a matter of right and our current system just doesn’t work, its way too expensive. The quality of healthcare is excellent for those who have enough money to buy the very best, but lower-income and low middle-income Americans are not getting good healthcare and so many now can’t afford the private health insurance that they’re going without insurance, millions and millions of people. And I think that to eliminate the incredibly ridiculous cost of all this unnecessary paperwork and different standards for different companies, it is time to have universal health insurance.”
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Last Updated ( Monday, 28 April 2008 20:53 )
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Enthoven's schizophrenic health care finance solution |
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Written by Andy Pollack
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Monday, 29 December 2008 19:31 |
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Well-known health care analyst Alain Enthoven had an op-ed in the Times yesterday with his solution to the health care spending crisis. It's a bizarre combination of market and nonmarket measures. On the one hand, he points to the virtues of large, multispecialty physician practices "in which doctors work together to improve quality and keep costs low. Their doctors share values and cultures of teamwork. They keep comprehensive electronic medical records, they share information, and they emphasize disease prevention and chronic disease management as a matter of course. These doctors are usually paid salaries, not fees for services. Research and experience suggests that these practices — which exist in all regions of the country, including both rural and urban communities — can reduce costs by 30 percent." In other words, within the practice these doctors rely not on market mechanisms (i.e. price and competition with each other) but on cooperation to cut costs and improve care. On the other hand, he wants to shift patients toward such practices by increasing competition, i.e. by creating incentives that will force patients, their employers and their insurers into such practices. Medicare and the VA have already shown the economies of scale, and the potential for teamwork, in large, integrated healthcare institutions. The evidence is there for making such models universal. Trying to do it through competition will just maintain the fragmentation among providers and insurers, which will force them to continue wasting money on competing with each other. - Andrew Pollack
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Last Updated ( Monday, 29 December 2008 19:36 )
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