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Tuesday, February 02, 2010

Small Biz Health Care Daily: The States on Health Care

While ObamaCare has hit rough political waters and where it might be headed is far from apparent, it does not mean that health care measures have been frozen everywhere.

As The Wall Street Journal reported today, even with tight budgets, there is some action in the states.

Unfortunately, some of that activity is counter-productive. That includes regulations and mandates, such as guaranteed issue, that drive up costs; and government-imposed limits on administrative costs.

Even worse are efforts to set up state-based single-payer plans: “In California, Gov. Arnold Schwarzenegger has vetoed two single-payer plans, which would have offered government health coverage for state residents, that were passed by the Democratic legislature. He wasn’t expected to sign the latest version passed by the Senate on Thursday if it hits his desk.”

However, there are states where more positive measures are being posted: “In New Hampshire and South Carolina, Republican lawmakers have introduced bills that would allow consumers to buy health insurance plans across state lines, an idea backed by Sen. John McCain during his presidential campaign.”

The right course of action remains expanding choice and competition. A national marketplace for health insurance would be a big step forward.

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council

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