In a way, it's a shame Mitt Romney dropped out of the presidential race so soon, as he was the candidate who could speak with the most authority about the realities facing any president trying to establish universal health insurance. The former governor has first-hand experience with that overwhelming economic challenge, as well as the political scars to prove it. In fact, he even has some good ideas for an alternative to a national program.
Yes, we all know that Sen. Hillary Clinton, while First Lady, took on the crusade to reform our dysfunctional health care system. The insurance industry, through its ingenious "Harry and Louise" ads, torpedoed her vast proposal, which was concocted in secret sessions, before it had a chance to gather any political momentum.
Mr. Romney, as governor of Massachusetts, actually signed a sweeping health insurance reform measure into law, designed to cover all residents. Indeed, the program includes the same mandate to buy coverage (with penalties imposed on violators) called for by Sen. Clinton, but rejected by Sen. Barack Obama (who would mandate coverage only for children).
As reported in the Aug. 24, 2007, New York Times (click here to read the entire article), the universal health insurance plan, which took effect last year, was "Mr. Romneys signal legislative accomplishment as governor," but the problem is that it's coming up short on cash.
As I noted in my Feb. 1 blog–"Is Health Care Reform Doomed?"–the state announced that the program was underfunded by about $245 million in this fiscal year, and would require an additional $400 million next year to cover costs.
That scared the life out of California lawmakers, prompting the Senate Health Committee to defeat a reform proposal similar to the one in Massachusetts, supported strongly by Republican Gov. Arnold Schwarzenegger, by a decisive 7-to-1 vote.
I had no love for Mr. Romney as a candidate. But I wished he had the chance to debate one of the Democratic candidates on health care reform, since he knows how the best laid plans to cover the uninsured can go awry.
For Mr. Romney, the problem is far from academic. Rather than debate in a vacuum, I would have liked to have heard him go head to head with either senator–Clinton or Obama–to force them to explain how their national, universal plans would turn out differently.
To be fair, the Democratic candidates say the problem in Massachusetts and the failure to pass a bill in California does not mean universal health insurance is a pipe dream. Instead, they argue that it proves the issue cannot be handled on a state-by-state basis. Only a truly national system will do the trick, they contend. I'd like to hear more on how and why.
In the meantime, Mr. Romney had some interesting ideas on how to get affordable policies to the uninsured without establishing a national system or mandating coverage.
According to the Times story, Mr. Romney "argues that the existing tax system penalizes those who do not acquire their health insurance through their employer, and that has prevented the development of a vigorous, affordable health insurance market. Those who acquire health insurance from their employers pay for their premiums with pre-tax dollars, but those who do not must use post-tax dollars to buy it. So Mr. Romney wants to allow people who buy their own health insurance to be able to deduct premiums, deductibles and co-payments from their income."
Mr. Romney also wanted to offer "incentives to states to take their own necessary steps to bring down the cost of health insurance," the Times reported.
Mr. Romeny split the 45 or so million uninsured into three groups, according to the Times–"about a third are eligible for public programs but are not enrolled; a third are low income but ineligible for public programs and need some help from the government to purchase health insurance; a third are middle income but have chosen not to buy health insurance."
He proposed "taking federal money currently being used to help states cover the cost of medical care for the uninsured and offering that money to states to help low-income people who are not eligible for Medicaid and other public programs to buy their own private health insurance," the Times reported.
Actually, this sounds intriguing. It's at least worth talking about before creating a new federal entitlement program. But now that Mr. Romney is out of the race, his ideas might disappear with his failed candidacy.
That is, unless he becomes Sen. McCain's running mate–although I don't think that's likely. In fact, my fear is that to pander to the religious right, McCain will ask Mike Huckabee to join the ticket, leaving open the possibility of having a former minister who doesn't believe in evolution (or the IRS, for that matter) as the vice president to a 72-year-old chief executive.
At the very least, perhaps McCain can appropriate Romney's health care reform plan as his own. At least that way he wouldn't go against a Democrat promising universal coverage by saying, 'Let's stick with the failed system we have and hope for the best.'
What do you folks think of Mr. Romeny's health care reform suggestions?
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