Watching President Barack Obama's press conference on health care reform the other night, I was not surprised that little was said about the mandates being proposed in Congress–requiring employers to offer coverage or pay a penalty, and requiring that everyone buy coverage. That was no doubt because the word "mandates" scares many and infuriates some, and could end up sinking the whole initiative–although I don't understand what everyone is so worked up about.
For one thing, despite all the blathering about how "The Government" should not be mandating us to do (or pay for) anything, the fact is we already are mandated to pay lots of fees for our own (and for society's) good.
For example, I am appalled to hear anyone from the insurance industry complain about government mandates because I don't recall hearing a peep of protest about state mandates that drivers carry auto insurance and that employers cover their people with workers' comp. When insurers stand up and argue against those long-time "mandates," I'll take any criticism of a health insurance mandate–for individuals and employers–more seriously.
Indeed, health insurers should be the ones shouting for mandates, and agents should be right behind them. Millions of potential prospects would be created overnight!
Complaints from "civilians" (those not in the insurance business) about coverage mandates are similarly bogus. After all, Social Security and Medicare are two of the most popular government programs ever, even though both are financed by "mandates." You don't have a choice about either. Taxes are withheld from everyone's salaries to help finance our retirement and eldercare medical expenses. So, what's the big deal if another few bucks are taken out to assure universal health insurance?
As for the employer mandate, if the number being bandied about now as the "penalty" for not providing coverage for workers holds up in the final bill–8 percent of payroll–that would be a bargain for most of those firms already covering their employees. Indeed, one of the fears of critics is that this might backfire. Many employers might gladly pay the 8 percent tax and let workers fend for themselves, because that would cost a lot less than what they are paying now in private insurance premiums.
Of course, in a grim economy like this, with everyone praying to keep their jobs, employers could probably get away with cutting out their health plans and leaving workers at the mercy of the market–government plan or not. But once the economy turns around–and it will–those who offer generous health benefits could use that as a competitive advantage to lure the best and brightest to their firms.
That is, unless the reform program taxes so-called "premium" health plans that cost more than some national benchmark, discouraging employers from offering more generous options.
As for those firms not providing health coverage for employees, it's time to get on board. You can't have it both ways–arguing against any government health plan to cover the more than 47 million without any insurance, but refusing to participate in the employer-provided health benefits system.
I frankly wasn't thrilled with President Obama's rambling defense of the need for reform the other night, but I give him credit for keeping the pressure on Congress to deliver a bill this year, as well as for scoring some key points.
One came in response to a lame question from one reporter–who basically suggested, what's the rush? President Obama reminded the nation that 47 million or more have no coverage and are in an understandable hurry to get affordable insurance, while the rest of America sweats it out hoping they won't lose their jobs so they can afford to keep the coverage they have.
He also noted that "the default position in Washington is inertia," reminding everyone that "nothing gets done in this town without a deadline." He's right on both counts.
President Obama also scored by acknowledging the fact that while everyone is afraid (and some are threatened) by change, the status quo is even worse. We've got to make a change in this shell game of a health care system, including insurance.
Yes, the economy is bad, and the timing may not be perfect. But if not now, when?
What do you folks think?
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