NU Online News Service, Aug. 13, 2:19 p.m. EDT

BURLINGTON, VT.–Howard Dean, the physician, ex-Vermont governor and former chairman of the Democratic National Committee, lauded President Barack Obama's health care proposals in a talk here yesterday.

"The president has it right," he said, noting that the bill's language proposes reform based on "the comfort of the American people to choose."

Gov. Dean was keynote speaker at the Vermont Captive Insurance Association annual conference here. A former six-term governor of Vermont, he is a strong supporter of the state's captive insurance industry and said he would like to see Vermont "catch up with Bermuda" in the number of captive insurers it domiciles.

"Most people like employer-based health care," he said, "but the President's plan gives people a choice." He said that 80 percent have health insurance and are happy with it, noting that while most who are insured want everyone to be covered, "they don't want to sacrifice their own benefits."

He said the high rate of medical inflation in the United States makes insurance more expensive, labor costs higher and gives the U.S. a disadvantage in global competition. Rising medical costs, he said, are a major reason why jobs are shipped to other countries and small business shut down.

He said every American should have the choice of public or private health care insurance and should have public health coverage available for life, no matter where they live or work

Gov. Dean said a big contributor to soaring medical costs are major medical operations and procedures. He noted that people don't inquire about prices for such care, because they know they're covered.

In Massachusetts, he said, a health care plan was implemented that covered all but about 2.5 percent of the residents. The plan was successful, but the high costs of medical care made the plan prohibitive. Because costs couldn't be contained, a panel of health care providers recently voted to end the program.

He observed that primary care physicians don't like health insurance companies and most would prefer a single-payer system, working on salary–a system that has been successful in Europe. He added that out of the 2007 graduating class of physicians, only 9 percent went into primary care.

The two groups that have done the most for cost control, Gov. Dean said, are self insured organizations and vertical organizations like Kaiser. He added that having a public option available would "re-tool the private sector, give Americans a choice and let the market work."

A big advantage of Obama's plan, he said, is that it is "not going to dismantle the private system."

The public option would be a Medicare plan. People could stay on this plan or opt back into the private sector, which would be funded. He added that the insurance industry would have to develop a more consumer friendly approach in order to compete with some of the advantages of Medicare.

For those worried about government-run insurance, he said America has had Medicare since 1964. The plan covers every American over 65, and they are "very happy with the program." The rest of America deserves a similar option, he said.

On the heated national debate that's presently taking place in town hall meetings, Gov. Dean pointed out that the "shouting down" is mostly being done by older Americans. He pointed out that for the first time in 2008, more people under 35 voted than did those over 65 and that they voted for Obama.

"People under 35 elected Obama," Gov. Dean said, adding that unlike the generations before them, this "younger generation" is neither far right nor far left. "They want to talk, not fight," he said. "They want something done."

He also said that this generation is the first multicultural generation in America, which in turn elected a multicultural president.

"The old way of doing things is dying," he said. "Polarization tactics don't work. Obama speaks to them. There is a transformation taking place."

During a question and answer session, one audience member said he works for the Red Lobster restaurant chain, which he described as having 1,760 restaurants and employing 180,000 workers–many of whom are under 30 and don't take the health care option. He worried that if Obama's plan is adopted, unemployment would rise.

Gov. Dean responded that smaller companies with payrolls less than $500,000 would not be responsible for health care.

As for larger companies, he said he didn't believe benefits would be taxed. He also said that while employees would be required to purchase health insurance, after five years they could choose between the public and private options.

He recommended that the restaurant chain provide health care for free to those under 30. This demographic, he said, is low maintenance and overall doesn't cost much to cover.

Gov. Dean said that while he fully supports Obama's plan, his recommendation would be a carbon tax of 10 percent on gasoline.

He acknowledged that is a regressive tax, because often those making lower salaries drive the longest distances to work due to the high cost of housing closer to work sites. However, he added, this group also is the most in need of health insurance. A gas tax also would help environmentally, making drivers more mindful of conservation.

When asked why tort reform isn't part of the health care plan, he said one reason is politics. "A big bill creates a lot of enemies," he said, explaining that one more group opposing the plan could be the last straw. Another reason, he said, is that tort reform needs to be done on the state, rather than federal, level.

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Howard Dean Says Obama Health Plan Offers A Good Choice

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