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Thursday, October 29, 2009

Small Biz Health Care Daily: The Public Option and Pelosi

Democrats in the U.S. House of Representatives are scheduled to hold a rally today on Capitol Hill to promote their big government health care agenda. Kind of reminds one of the band playing while the Titanic sank.

In an October 29 report, the New York Times noted: “Under pressure from moderate-to-conservative members of the House Democratic caucus, Speaker Nancy Pelosi had decided to propose a government-run insurance plan that would negotiate rates with doctors and hospitals, rather than using prices set by the government, aides said Wednesday.”

This is a difference that makes no difference.

Given the government’s power through regulation, mandates and the use of taxpayer dollars, the main problem of government expanding and the private sector contracting persists.

Government raises costs for private insurers through assorted regulations and mandates, while tapping the taxpayer to crank up spending. The government’s role will expand, while the role of private insurers will be diminished. All of this will serve to push overall health care costs higher. That means increased burdens on taxpayers – including entrepreneurs and small businesses – and at some point, rationing of care by the government.

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council

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