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Health Care For All?
by Geov Parrish
An Oregon initiative with a realistic chance of passage this week would
create the first program in the nation that would offer a Canadian-style
universal health care program to all state citizens.
By the time you read this, Oregon voters will have passed judgment on
Measure 23, the "Oregon Comprehensive Health Care Finance Plan." Over
recent months, Measure 23 has galvanized volunteers, gathered national
attention, spotlighted the largely ignored frustration much of the public
feels with the horrific state of America's health care delivery system, and
drawn the fierce opposition of the health insurance and hospital
industries. It's the first time in eight years voters in any state have had
the opportunity to approve such a system.
The initiative claimed over 3,000 volunteers across Oregon and thousands
more donors, while opponents, by mid-October, had gotten only about 50
donations--primarily from the health insurance industry. But with over
$400,000 in hand, those groups are outspending proponents by more than 10
to 1. Kaiser Permanente, Regence BlueCross BlueShield of Oregon,
Pacificare, PacificSource, and ODS Health Plans each donated more than
twice the total received by the Yes on 23 campaign.
Independent polling has been scarce, with polling conducted by each side
showing that they're ahead; most observers have given opponents a narrow
but easily reversible lead. As the numbers of undecided voters has
decreased, Yes On 23 says, the measure's support has steadily improved.
For those of us accustomed to a system of jumbled and inadequate access to
care and coverage, the scope of the Oregon plan is staggering. The agency
that would supervise the system would cover virtually all medically
necessary procedures for virtually all state residents, including those not
now insured. That includes any number of medical procedures for which,
under existing HMOs or insurance plans, patients now must pay some or all
of the cost--among other things, alternative practitioners, premiums,
co-payments and out-of-pocket costs for doctors, dentists, home health
supplies, prescription drugs excluded by private health insurance and
Medicare, and long-term care. Residency requirements would be notably
lenient; to qualify, all a new resident would need to do is declare their
intent to remain in the state.
The price tag, not surprisingly, is enormous. In a state of 3.4 million
residents, the plan would cost an estimated $20 billion per year--more than
the entire current budget of an already cash-strapped state. Proponents
claim two-thirds of that money would be covered by reimbursement from
existing federal and state programs, leaving at least a third--critics say
it's more like half--to be raised through higher income and other taxes.
Those taxes would be progressive; the 25% of population below 150% of
federal poverty level would be exempt from income tax increases. But
critics charge that the tax burden, and the spending, will skyrocket in the
future, particularly as residents realize they can obtain medical services
they don't currently use--or cannot now afford.
"Right now in the US we're spending almost $4700 per person per year on
health care," Britt McEachern, one of the organizers behind the measure,
said last month. He claimed that proposed tax increases would "...be
completely offset for most people by the money they save. You're going to
limit copayments, insurance premiums, deductibles, you're not going to pay
out of pocket for prescription drugs..Most people are going to wind up
saving a lot of money."
There is, of course, another potential catch: the federal government must
agree to a waiver to redirect money now going to the state's existing low
income health system, the Oregon Health Plan, which Measure 23 would
supplant. And the Bush Administration, according to all observers, is
likely to be hostile to a comprehensive, state-run system that essentially
puts insurance companies out of business in the state. Oregon already has
experience with the feds destroying a progressive state ballot measure; as
with several Western states, Oregon voters have overwhelmingly approved
legalization of medical marijuana, but programs to make such use viable
remain blocked by federal intransigence.
Such concerns have led to some surprising groups declining to back Measure
23. The Oregon AFL-CIO is opposing it, on the grounds that it would
increase taxes too much for working people; labor wants a universal health
care system, but wants employers to pay for it. The Oregon Medical
Association, which has long backed some sort of universal health care
coverage, has also come out against the measure, due to concerns over the
cost and the likelihood of not being able to gain federal reimbursement.
Despite these criticisms, McEachern was upbeat; he can draw upon the
discontent of voters alarmed and angered at the expensive and inadequate
health care they now get from the HMO system. He also sees Measure 23's
passage as likely to spark similar efforts in other states. "Right now," he
says, "there are 13 other states pursuing universal health care. Oregon is
the furthest along. When it passes here every one of those campaigns will
kick into a higher gear."
The question, ultimately, is whether anger over the sorry state of Oregon's
current health system is so pervasive that voters in a state historically
willing to try new ideas will go for a system that is costly, unproven, and
likely to raise hackles with federal programs. In the end, if Measure 23
won last Tuesday, it may be due to its opposition. "[Measure 23] is not
going to help the insurance companies one bit," McEachern says. "It's gonna
help citizens." And anything that pisses off the insurance companies has
got to be a good idea. And even if Measure 23 loses this year, our health
care system is still in a state of crisis--and other states with initiative
processes, like Washington, can certainly try again.
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