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Friday, February 23, 2007

Saving Private Insurance

Healthcare improvement is in the air. Ideas for trade with the 46 million Americans without medical insurance appear to be popping up faster than new cases of the winter flu. President Bush proposes to utilize tax deductions to help people buy individual plans. California Governor Arnold Schwarzenegger wants to make it compulsory for everyone in his state to obtain insurance and would force employers who don't give coverage to pay into a fund. Democratic Presidential candidate John Edwards would lift taxes on the affluent to pay for subsidies to help those with low incomes obtain policies. Some members of Congress are to promote insurance purchasing pools for small businesses.


An odd bedfellow's coalition including the Business Roundtable, AARP, the Service Employees International Union and Wal-Mart is approaching for some kind of expansion of coverage but is not saying what structure it should take. What these speckled plans have in common is the assumption that, at least for the predictable future, most of the working population will persist to receive coverage through private insurance carriers. Public officials across the political spectrum are, in effect, seeking to enlarge the customer base for a highly profitable industry.

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