How a New Health Care Policy Will Affect Service Providers

By Tony Deblauwe

It’s interesting to hear how divided people are on the latest health care debate. Both sides (to give or not to give to all by the government) point to many facts and conditions, but it doesn’t seem to be going anywhere. The reality is, the debate over reforming the way Americans pay for and receive health care has been endless.  Politicians have tried to provide universal health care benefits for nearly a century.  Even Teddy Roosevelt wanted change, advocating national health insurance during his 1912 campaign against Woodrow Wilson.  Wilson took the Presidency, and plans for national health care reform were shelved.

Providing Health Insurance is a Profitable Endeavor

2008 figures published by the New York Times show one of every six dollars went to health care even though approximately 46 million people were uninsured.

One group, Health Care for America Now (HCAN) reported that health insurance companies’ profits had increased by 428% in the last 8 years. 

Dr. Robert Book, Senior Fellow for Health Economics at the Heritage Foundation, was interviewed in a recent CNSNews.com report which discussed health care insurers’ profitability.  Dr. Book is “Cherry picking even their own meaningless data, because their chart shows profits dropped by 35% from 2007 to 2008 making the increase from 2000 to 2008 only 249% instead of 428%.”

Either way, the profits are huge. Senate Commerce Committee Chairman John Rockefeller, a Democrat from West Virginia says “Insurance companies are making so much money, it’s ridiculous.” 

America’s Health Insurance Plans (AHIP) is the national association that represents over 1,300 health care insurance providers.  Their mission statement includes a goal of expanding access to affordable coverage to all Americans.  They support some federal oversight, however they do express an interest in maintaining private insurers’ right to make a profit.

Will A Government Run Public Option Put Insurance Companies Out Of Business?

John S. Hoff, in an article for The Heritage Foundation, says that a public option would be unfair to private insurers because the government would have “a number of advantages” which would cause approximately 83.4 million Americans to drop private insurers in favor of the more affordable public option.

Lawmakers say that insurance companies can manage to maintain a profit margin even if a public option for health coverage is instituted.  Senator Rockefeller says “Health insurance companies can take care of themselves – remember, they insure a lot of other things besides health care.”

So both sides of the debate continue to rage hotly with no end in sight – both private insurance providers and supporters of a public option continue to maintain that their way is best.

Compromise May Be Possible

On August 17, 2009 the White House stated that a non-profit health care cooperative system may be an acceptable replacement for a public health care option. President Obama’s willingness to compromise has caused serious doubts among constituents about his commitment to keep his campaign promises about overhauling the health care system. University of Wisconsin economist Ann Hoyt, has conducted research on co-ops of all kinds and says that the co-op solution could work.

Again, what does this mean to organizations? What are the choices really and how will they play out long term? Everyone is debating this issue with the right intent, dissenting as our free speech and democracy provides, but at the end of the road are the people (taxpayers) who have to pay something regardless. I hope that more facts and more discussions continue rather than purely emotional rhetoric. Health care reform is needed, that is an irrefutable fact. I just want to see change to the system administered logically and fairly for all concerned.

What do you think? Can we get compromise on a balanced health care system?

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