Professors Explain Intricacies Of Health Care Bills in Congress

December 1, 2009
By Chris Kim

As the topic of health care rattles up debate in the United States Senate, a small lecture led by Prof. William White and Prof. Kosali Simon, both policy analysis and management, stirred up the audience at Mann Library.

Simon led the discussion on the differences and similarities between the bills proposed by the Senate and the House. Among the many components of the bill, subsidies, the public option, fines, insurance rules and taxes were some of the key issues. The House wants the public option to be in line with private plans and financed through premiums, Simon said. The Senate, however, sets a restriction by giving states the power to not offer a public option. Speaking of Health: Prof. William White, policy analysis and management, discusses details of healthcare legislation yesterday at Mann Library.Speaking of Health: Prof. William White, policy analysis and management, discusses details of healthcare legislation yesterday at Mann Library.

“There will be many amendments before this bill gets passed,” White said.

Some key challenges in the reform, according to the lecturers, are coverage, costs and quality. Seventeen percent of the non-elderly population is uninsured, and there are concerns with medical errors and costs of programs are increasing, they said.

“Most of the insurance individuals receive is from their employers,” White said. “That’s 62.9 percent.”

The panelists outlined the goals for the new healthcare reform bills. Simon explained that there are two sides of the debate.

“We can either increase the number of Americans with health insurance — that’s the demand side,” he said. “Or we could change the rules of the insurance market and add new options, which is the supply side.”

Simon said that in order to increase the number of Americans with healthcare services the government must provide subsidies to those who are uninsured so they can purchase private coverage. She also explained that there may be fines for firms and individuals who do not buy healthcare coverage.

Furthermore, in order to change the rules of the insurance market, a public option should be added, according to Simon. There are other issues being considered, including the possible rise in costs for the healthy and fear of adverse selection.

Other goals of the bills include taxing pharmaceutical companies and high cost health insurance policies.

White expressed his concerns with this strategy.

“There are several issues to this,” White said. “First there will be unintended consequences brought onto high risk groups such as policemen and second, unions are showing resistance.”

White further explained the public options by presenting competing models. One model for payment is between Medicare and negotiated rates. As far as eligibility, according to White, it is either broad or narrow.

According to the Congressional Budget Office, the House’s health care bill will reduce the percentage of uninsured by 6 percent by 2019. Similarly, the Senate’s bill will reduce the number of uninsured by 4 percent.

Eric Velez ’10, member of the Cornell Libertarians, voiced his concerns and opinions about the new health care bills.

“One of the greatest things about the U.S, is that we’re innovative in so many fields, health being one of them,” Velez said. “The government taking control will reduce some of the innovation. Health care should be deregulated and not linked to employment because people should be able to purchase their own insurance.”