Healthcare Portability

In "Study Warns Jobs Losses Will Strain Government Health Programs," (NY Times, 4/29/08), Kevin Sack reported on a Kaiser Family Foundation report that "projected that each rise in unemployment of one percentage point would also add 600,000 children and 400,000 adults to the two primary state and federal health insurance programs for the low-income uninsured. That would require an additional $3.4 billion for Medicaid and the State Children's Health Insurance Program, with $1.4 billion of it from the states."

Of course, what anyone with even the slightest state government experience knows is that unemployment translates into smaller tax revenues available for states to devote to social services.  The Urban Institute founds that a 1% increase in unemployment actually results in an expected 3-4% drop in state general fund revenues.  While some states don't collect income taxes, unemployment still results in reductions in sales tax and property tax collections as spending falls across the economy in times of recession. 

It is one thing to offer exemplary health services during boom-times, but at the end of the day, how can we ensure government services are available during the times when they are needed most?

McCain Releases His Health Care Plan

The McCain Healthcare plan is getting some attention: McCain is right on health care.  While his plan doesn't deal with those that cannot get insured because of pre-existing conditions, it does encourage portability by enabling individuals to purchase their own insurance through tax subsidies being diverted from employers to households.  How else can we discuss portability without divorcing health care from employers?

Still, once we start talking about addressing the uninsurable, it seems like any government program set up to manage the high-risk pool would simply be an excercise in throwing money down a well.  Those with pre-existing conditions will likely consume expensive healthcare.  The real coup would be finding a way to get all insurers to share the cost of the government-guaranteed high-risk pool.  Afterall, the government is not a charity, rather it's chief duty is to address market failures.