The American Mind

Gads…it pains me to be on the side of the Dems on this one, but I have too much experience with health insurance not to.

The Opinion Journal article is ignoring - intentionally, IMO - some key facts. They noted than private companies have made “modest improvements” in containing health care costs, while conveniently ignoring what “modest improvement” means. Modest improvements means health care costs to small businesses are now merely in the low double digit figures - 10-13%/year - instead of the 15-18% we had three years ago.

IMO, this is a pro-business move, not an anti-business move. Entrepreneurship sould be increased since people with pre-existing conditions can now start their own businesses without fear of not having health insurance. GM will be far more willing to stay and invest in Janesville if they eliminate their health care disadvantage, which now runs $1200-1500/vehicle, depending on whose numbers you believe. The biotech industry that demands highly trained individuals, who, in turn, demand high cost health insurance plans, will be in better position to compete.

As for the red herring of “metering service”, it’ll be no worse under a single payer plan than present insurance.

Health care is the most frustrating issue out there. The closest I come to a solution is tailor-made for a young, healthy person like me: ending third-party payments by either taxing employer-provided health insurance (like wages are taxed; I’d reduce taxes on both) or health savings accounts. But due to years of living with the system we have transition would be a real pain with a lot of people falling through the cracks.

So I have no good answer. What I am more confident in is if Wisconsin imposed a new, large payroll tax neighboring states will have a great argument to businesses looking to move into the Great Lakes area to avoid the Badger State.

It’s basic economics. When you increase the cost of something (in this case labor) the demand will go down. All things being equal.

Sean, I agree that it’s basic economics. But for the industries Wisconsin wants to retain and increase, I think the cost/benefit equation works in our favor. It really boils down to this: is our manufacturing, small business, and biotech cost for health insurance (both the businesses and the employees) greater than 14.5% in the near term? I can’t speak for every industry, but I’ve been involved in working with auto and paper, and both their health care costs for the companies alone exceed 14.5%, going away. And that doesn’t even include what the employees pay in co-pays, deductables, and non-insured coverages.

Another point on entrepreneurs - they’re probably the best job engine we have, but a young person like you who might want to start a business has to step back and really consider if they want to do so if they’ve had any pre-conditions, like skin cancer, a heart murmur, or psoriasis since they likely won’t be able to get individual health insurance and may never re-qualify for group insurance.