How the State-Based Universal Health Care Act Helps Businesses, Communities, and Individuals
"Medical costs are the tapeworm of American economic competitiveness." - Warren Buffett*
Healthcare costs have skyrocketed—they are now ten times what they were in 1960, even with inflation adjustment. This is a heavy burden. One-third of the population receives health care at low or no cost, leaving the rest of us to bear the high costs. We need a solution that can provide good care at a much lower cost, giving hope for financial relief.
It's time for a change. The State-Based Universal Health Care Act (HR 6270) provides states with a significant stepping stone to better health for their people and businesses**. The Act gives states more freedom to construct healthcare coverage independent of employment. Employers can devote more resources to business development, competitive wages, and sales rather than being sidetracked by the complexities and uncertainties of double-digit annual cost increases of employment-based health insurance. By allowing states to manage federal healthcare dollars, the Act allows states to form systems that cover all employers and employees, are much more affordable, and are of higher quality.
Most healthcare funds in a state flow through federal programs, primarily Medicare, Medicaid, and the Children's Health Insurance Program (CHIP). These programs reimburse providers at much lower rates than private insurance, creating inequities and difficulties in finding willing providers. An HR 6270 waiver bypasses Centers for Medicare and Medicaid Services (CMS) rules which inhibit states from developing healthcare systems that are most suitable and equitable for each state's residents, employers, and employees.
The HR 6270 Act would provide specific waiver authority to help state programs survive legal challenges - most notably by adding clear Medicare and Employee Retirement Income Security Act of 1974 (ERISA) waiver authority.
The Act will significantly reduce the complexity of our current provider networks, which often restrict employers' and employees' freedom of choice. By consolidating hundreds of private plans into one with clear benefits, states will reduce administrative costs, save money for businesses and individuals, and mitigate healthcare-caused financial disasters.
Can we trust states to use the Act appropriately? The Act has a number of guardrails to prevent abuse. For example, coverage must be as comprehensive and affordable as the federal programs for which residents would otherwise be eligible.
More information? Chuck Pennacchio, cpennacchio@gmail.com, (215) 828-5055, onepayerstates.org
Text of HR 6270: https://www.congress.gov/bill/118th-congress/house-bill/6270/text
* https://www.wsj.com/articles/warren-buffett-sure-does-like-to-say-tapeworm-1517325314