The following is an excerpt from my California Senator's constituent newsletter, and I thought it was well stated and worth sharing with folks from other districts.
"Dave Cox Senate Report: October 2007
Health Care Next
The Governor has also called a special session on health care. Proposals being considered by Democrats and the Governor call for a largely tax-funded program which ensures that every resident be provided with health insurance.
Other nations that have implemented universal health care programs have unfortunately discovered that government-run programs increase demand and costs, reduce access and personalized care, and achieve cost containment by rationing care. It is not my desire to see California move in that direction. Should the Legislature and/or the voters proceed toward the implementation of a government-run healthcare system, significant tax increases will be required to fund it. Some proposals put forward so far specifically target businesses and hospitals for new taxes– a counterproductive option. Throughout the twelve-county First Senate District, rural hospitals struggle to keep their doors open – and some have simply closed. Taxing businesses and medical facilities will make it even more difficult to provide jobs and keep hospitals open in these rural communities.
Some proposals would expand eligibility for government healthcare to everyone, including illegal immigrants. Such provisions have been known to create an incentive for employers to eliminate job-based healthcare plans and allow the taxpayers to pick up the tab. The coverage of illegal immigrants will be solely at the state taxpayers’ expense, since federal law prohibits the use of any federal funds for that purpose. Additionally, no minimum residency requirements have been proposed, which would make California a magnet state – not only for illegal immigrants, but anyone seeking health care. The costs the state could incur are incalculable. Without appropriate residency requirements, California taxpayers will be essentially signing a blank check.
After researching the options, I am convinced that there are more appropriate means of achieving the desired end without the creation of a massive, impersonal bureaucracy funded through tax increases. Approximately 85% of the population currently has some form of health insurance. It does not make sense to dismantle 100% of the health care system to provide insurance to the 15% of the population who lack coverage.
Research shows that, in many ways, government has been a part of the problem – adding to the cost of insurance. Through laws and regulation, California has imposed approximately 48 health care mandates that can add as much as 30% to the cost of health insurance premiums.
From my perspective, the free market has the greatest success in providing health care coverage options in the most cost-effective manner. To remove the barriers to access, the Legislature should support efforts to equalize the market by shoring up provider rates under state programs to reduce cost-shifting to the insured, and increase insurer competition by reducing regulation.
A market where insurers may more freely customize their policies, co-payments, premiums and coverage allows consumers to choose the best product based upon their means and medical needs. Enabling insurers to compete through innovation and efficiency improves both affordability and accessibility. The Legislature should also make it easier to refer the uninsured to community clinics for non-emergency care, and provide tax credits for employers and individuals who purchase coverage.
Senate Republicans have introduced our own health care proposals as alternatives to government-run programs. You can look at them at this website:http://republican.sen.ca.gov/calcare
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Reprinted by permission. All rights reserved to original author, Senator Dave Cox.
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