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September 21, 2009

Baucus health-care plan just got more expensive

Baucus gives an interview to the NYT and says he'll increase subsidies for low-income families. Times says the changes could add $28 billion to the cost over a decade, or $2.8 billion a year. That doesn't sound like enough to make much of a difference. But if the figure can move once, it can move again. In a bill that also requires people to have health coverage, increasing subsidies for people who can't afford it is the right thing to do. Boosting the assistance for lower-income folks by a material amount will raise the cost of a bill whose chief selling point had been its affordability.

Reality intrudes again. If you're going to cover everybody, it will cost a lot of money. Revenue has to be found to pay for this. It's worth doing. But do it with eyes open.

Mr. Baucus said the changes showed that he had heard the criticism of his bill from colleagues, who asserted that many people would be required to buy insurance who could not afford it — even with federal subsidies to help defray the cost of premiums.

“Affordability — that, I think, is the primary concern,” Mr. Baucus said. “We want to make sure that if Americans have to buy insurance, it’s affordable.”

Posted by Jay Hancock at 9:24 PM | | Comments (3)
Categories: Health Care
        

Comments

The whole damned idea of this "plan" is wrong.

Far too much emphasis on insurance to pay for care and not nearly enough on people actually getting "care".

I don't believe a word of Mr Baucus' explanation but I'm just as pleased to see the effect. Yet another roadblock or at least stumbling block to keep us from making this mistake.

Who is the chief economic contortionist and how will he or she determine what affordability is?

If we are getting more quality products, then it will not be a problem.

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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