Vermont Moves toward Universal Health Insurance

Vermont, the only state in the Union to elect an avowed socialist to Congress, has passed a universal health insurance bill. The state’s Republican governor had been threatening to veto it, but the Democratic legislature yielded to his demand that the private sector run the program. The full plan goes into effect October 1, 2007, and some benefits get phased in before that.

America as a nation has been unable to get its act together on universal health insurance for years. Harry Truman, almost 60 years ago, called for a national program that would allow the sick to get medical care regardless of the thickness of their wallet. Today, 46 million Americans lack that security.

The Vermont plan and the Massachusetts legislation passed in April are examples of the strength of a federal system. Where the national government lacks a consensus, state governments can move forward. If something works, it can sometimes be replicated across the nation. If it fails, the failure is contained. In the European Union, the idea of “subsidiarity” arises from this very notion.

The Vermont law is far from perfect, but it is a good attempt. Catamount Health, as the state-subsidized product will be known, will be sold by the existing health insurers in the state. To pay for the subsidy, employers who don’t provide health insurance to their employees will be required to pay $375 per employee per year to the state. Also, the cigarette taxes will go up 80 cents a pack.

With the private sector making money (initially) from the program, the biggest opposition to universal health care has been bought off. If business continues to profit, great. If not, if costs continue to rise (as one may expect from ever improving medical technology) a major bail-out lies ahead. If that should happen, it will prove that the private sector can't provide universal healthcare. The solution, then, is clear -- a single-payer system of universal coverage that keeps most Europeans and Canadians in good health for less money than Americans spend while leaving some without coverage.

© Copyright 2006 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Fedora Linux.

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