Could an Economic Downturn Be the Ticket to Health Care Reform?

By Jenny Choi on November 18, 2008

An analysis in the Los Angeles Times today posits what could prove to be a tipping point for the health care crisis: the current economic slump. Senate Finance Committee Chairman Max Baucus (D-Mont.) announced his proposal last week for a universal health care package, and Senator Ted Kennedy (D-Mass.), a long-time proponent of expanded coverage, says he plans to advance his own universal health care plan next week. But how can we possibly be talking about expanding coverage at the same time that the government has a ballooning deficit?

Health care costs in the current economic climate have no doubt placed an enormous added strain on the uninsured and the newly unemployed, not to mention employers, health care providers and the government. But many believe that health care and the economy are inextricably linked -- that, in essence, health care is an economic problem. Last week, the New America Foundation released a report, "The Cost of Doing Nothing," which argues that waiting to reform the system, while costs continue to skyrocket, comes with a price. By their calculations, the "economic cost of failure," the billions of dollars in lost productivity for those without coverage, is actually less cost-effective than covering every American.

Americans, on the whole, agree that our current health care system has major flaws and is in need of change, but the degree of reform is less unanimous. Public support for a universal health care plan varies based on survey question wording. Two-thirds believe it is the federal government's responsibility to ensure that all American have health coverage, but they are less galvanized about requiring it by law. Still, the consensus is that lowering the cost of health care and extending it to more people are the most important issues for the president and Congress to deal with.

More on public attitudes about various health care issues can be found in our red flags section, and be sure to visit the health care guide in our Citizen's Survival Kit for the bigger picture: key facts and statistics, plus a discussion guide that offers three approaches to the problem, with pros, cons and specific strategies for each.

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