PHA-Exchange> Five U.S. States seek universal health care

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From: "Betsie Weil" <bbweil at yahoo.com>


HARRISBURG, Pennsylvania (Reuters) - Pennsylvania
became the fifth U.S. state to seek universal health
coverage for its citizens on Wednesday when it
unveiled a plan to provide medical insurance for some
three-quarters of a million residents who currently
have none. 

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Along with other states including Massachusetts and
California, Pennsylvania is joining a growing movement
among U.S. states to tackle the problem of residents
without health care insurance, which according to some
estimates number as many as 46 million Americans or
about 15 percent of the population.

The problem of uninsured medical costs, often left to
be covered at taxpayer expense, has long been seen as
a task for the federal government to tackle, and the
issue frequently arises during political campaigns for
the White House and Congress.

Amid rising costs, the United States spends about 16
percent of gross domestic product on health care,
significantly higher than nations such as Canada, at
9.7 percent, and France, at 9.5 percent, which have
nationalized health systems, according to the National
Coalition on Healthcare, which seeks universal
coverage and cost containment in the U.S. system.

Pennsylvania Gov. Ed Rendell said the plan, called
Cover All Pennsylvanians, would provide affordable
basic health coverage to small businesses and
uninsured individuals through the private health
insurance market at a time when many cannot afford it.

"Employers and individuals have virtually no chance to
keep up with the spiraling cost of health care,"
Rendell said at a news conference.

Companies would be eligible if they have fewer than 50
employees and if workers earn less than the average
state annual wage of $39,000.

The cost to those employers would be about $130 a
month per employee. Also, qualified individuals could
buy into the plan for between $10 and $70 per month.

Rendell, a Democrat, said he hopes to implement the
plan by January 2008. He said it would require the
passage of 47 pieces of legislation and numerous rule
changes to become a reality.

Unlike residents of Massachusetts and California,
individuals would not be required to buy health
insurance but Pennsylvania might introduce a mandate
after the first three years, depending upon how many
people buy into it voluntarily, officials said.

The plan will be paid for in part by a 3 percent
payroll tax on all companies that do not provide
health insurance. An exemption would be made for the
first 50 employees in the first year, a number that
will decline in subsequent years.

The cost, which officials said would be specified in
the upcoming budget, also would be met by federal
matching funds, an increase in a cigarette tax and a
tax on smokeless tobacco products. Rendell said the
impact on the budget would be limited.

Brian Kelly, director of government affairs for the
Pennsylvania Chamber of Business and Industry, said
there was likely to be some "skepticism and concern"
among the chamber's members toward the plan to tax
payrolls of companies that do not offer health
insurance.

But the Hospital and Health System Association of
Pennsylvania welcomed the plan, saying in a statement
it was "encouraged by the governor's efforts to
address health care coverage."

Health insurance premiums in Pennsylvania have risen
75.6 percent since 2000, compared with a 17 percent
rise in inflation and a 13 percent increase in the
median wage, Rendell said.

Maine and Vermont also have taken steps to provide
health care coverage for residents.