The cost of universal health coverage

I received an e-mail today from the mother of my son in which she writes:

"Guys, I rarely send emails asking my friends to think about supporting something political, but this time I am compelled to. The next two months are likely to see the Obama administration’s full court press for meaningful health care reform. ... If you, like me, have ever experienced a time when you’ve had to try to find individual health care insurance, or held your breath while people you loved went uninsured, or had friends with pre-existing conditions that locked them out of the health care system ... Then you can understand my passion. ... It will take EVERYONE calling their U.S. Senator’s office and STAYING ON TOP of the issue to get something this controversial passed. "

Actually, it will take a lot more than that. It will take money. Lots of money. More money than we have available now. The most conservative estimates I have seen is that the cost will be somewhere in the neighborhood of $1.5 trillion over the next 10 years. Unfortunately, folks, that's going to mean a tax increase.

President Obama has already said he is not going to use the George W. Bush approach. The preceding president paid for his tax cuts for the wealthy by simply letting the federal deficit grow larger. Obama is insisting that the cost for universal health coverage must be deficit neutral.

The President has already earmarked more $300 billion in savings in Medicare and Medicaid by eliminating unjustified subsidies to private insurers and by reducing payments to home health care providers, drug companies and hospitals. He has also promised to work with the Senate to find up to another $300 billion in cuts. But more must be done. Here are some suggestions:

Limit the itemized deductions the most wealthy taxpayers now enjoy (this is an idea that will meet with stiff opposition from Republicans and both of Texas' senators are Republicans, so lobbying them will not accomplish anything.)
Increase taxes on sugared drinks, alcohol, tobacco and other products acknowledged to be bad for one's health.
And the big, most controversial one: Limit the tax exclusion for the value of the health insurance provided by an employer. It is the nation’s costliest tax subsidy, and some experts believe it encourages overuse of medical services.

Yes, universal health coverage is a desired outcome. But like many desired outcomes, it comes with a hefty price tag.