Let's Be Hopeful About Health Care

June 07, 2011 at 1:16 PM

By CAROL VOYLES

Some of us insist that the solution to our health care problems is competition across state lines among private sector insurers. Keep in mind that dealing with ever more insurers also increases administrative costs, and millions of Medicare recipients have recently indicated that they refuse to depend upon private sector coverage.

In any case, insurance works effectively only when risk is broadly shared. As coverage requirements vary from state to state, we would see even more healthy citizens choosing less-costly coverage, making comprehensive coverage less affordable or unaffordable. We would all continue to pay for uninsured and under-insured patients through higher rates, however.

The Wall Street Journal cited a reason to be hopeful. Insurers are now focusing upon cost-saving solutions: reducing administrative costs, investing in health care information technology, and focusing upon accountable care. According to Aetna’s chief executive, Mark Bertolini, these positive changes are attributed to “the action-forcing event of health care reform.”

President Obama also reminded our nation’s governors that the new law invites states to develop their own health care plans, something they claim they want to do. The only requirements are that they cover as many people and cost no more than the Affordable Care Act.

Only two states, Oregon and Vermont, have taken action. Vermont has proposed a single- payer plan projected to save $580 million in administrative costs during the first year, and create thousands of jobs by freeing employers from the burden of providing health insurance. There is reason to be hopeful.

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