Clarifying Recent U.S. Healthcare Reform

Across the United States, opponents are denouncing healthcare reform legislation recently passed by Congress as a complete government takeover that will lead to out-of-control deficits and cripple the economy. However, these assertions are misleading.

Debunking worries of a government takeover of healthcare

A government takeover, in the purest, most accurate sense of the term, will not come about because of this legislation. The so-called "public option" the Democratic Party's left wing fought hard for in Congress, particularly the House of Representatives - a health insurance program that would be administered directly by the government - did not make it into the final product, the result of a combination of moderate- to conservative-leaning Democrats not buying into the idea and a large number of Republican amendments inserted into the bill, even though the final bill was ultimately voted down by all Republicans.

What the bill does provide, however, is financial assistance in the form of subsidies to low- and middle-income workers and families so they may be able to afford health insurance premiums - premiums that will continue to be offered by private insurance companies. There are also tax breaks and other incentives in the legislation meant to help businesses in providing coverage to their employees.

That being said, the final legislation approved by Congress, though it provides subsidies and allows for further regulation by the federal government into the healthcare industry, is not a government takeover in the true meaning of the phrase, as the government itself is not providing insurance. Private insurers will continue to operate and administer plans. Opponents are distorting the definition of the term "government takeover."

The effects of this healthcare reform on the national debt

According to the non-partisan Congressional Budget Office (CBO), as restated in a recent article featured on CNNMoney.com, the legislation is expected to shave $143 billion off the deficit within the first decade, and over $1 trillion within the second decade.

The role of personal responsibility in healthcare on the private sector

The reality of whether or not this attempt at healthcare reform will ultimately prove effective hinges on a certain amount of personal responsibility, a key ingredient that this or any legislation can never truly have control over.

If individuals across the United States can really begin to take their health seriously through such steps as taking advantage of preventive care (which the bill ensures basic access to), going in for routine checkups and tests, and cracking down on diet and excercise, this bill has the potential to not only change lives for the better on the individual level, but may also lead to greater economic productivity and output as a result of workers overcoming chronic ailments and not calling into work sick as often. And the effects of sick workers on the economy are both staggering and well-known.

According to the abstract of a study published in 2005 by The Common Wealth Fund that looked at the impact of sick workers on the U.S. economy in 2003, "...Sixty-nine million workers reported missing days due to illness, for a total of 407 million days of lost time at work. Fifty-five million workers reported a time when they were unable to concentrate at work because of their own illness or that of a family member, accounting for another 478 million days. Together, labor time lost due to health reasons represents lost economic output totaling $260 billion per year."

Conclusions

The recent healthcare legislation passed by Congress is in fact not a government takeover. It is also, according to figures issued by the non-partisan Congressional Budget Office (CBO), fiscally responsible. Finally, the legislation holds potential in improving the overall economic climate across the United States. But, as with all healthcare-related issues and decisions, the importance of the role of personal responsibility cannot be understated. Only time will tell how effective - or not - this attempt at meaningful healthcare reform will be. The ink is not yet dry.

And how will all these subsidies, tax breaks, and other incentives for individuals, families, and businesses be paid for? When people are healthier, they don't have to call in sick at work so much. Therefore, the more time they're working on the clock, the more they are producing both federal and state payroll taxes, which their employer matches. When they are healthier and work more consistently, their employer is able to create more capital for other businesses and for society.