Healthcare Reform Bill Signed!

We at EmSpring are not in favor of government-run health insurance or a universal public system, but it is undeniable that the current system of employer-provided group health insurance is broken. With President Obama's signature, the new reform law brings an end to the Congressional vote, but the political fight is just beginning. While we have strong opinions on many elements of the Bill, we here at EmSpring are still most definitely in favor of change.

Everyone in America will eventually feel the many effects of this Reform Bill; however, lower health care costs are not likely to be one of them. Make no mistake, this Bill is about health insurance reform, not health care reform. I fear that a substantial amount of confusion will arise as the expectation gap between what the public wants from Reform and what is delivered becomes more apparent in the next few years. Still, it is far too soon to judge who the voting public will punish in the next election: those who voted for this Bill, or those who continue to fight against it.

In economic terms, America relies on an elaborate and fragmented third-party payor system of taxes and insurance premiums to finance an industry that has an inelastic demand-curve (higher prices have little effect on demand for services). Free market capitalism simply does not work well with inelastic demand curves. The underlying reasons for this are found in human nature and our survival instinct and cannot be easily overcome with a political solution without an overwhelming public acceptance of some form of rationing.

As the political debate about how to implement the new health reform law grows louder and more contentious, we shouldn't lose sight of the reasons we are having this conversation in the first place.

• Many American businesses can no longer afford to offer their employees high quality health insurance.
• Individuals and families cannot afford to get sick or injured without risking bankruptcy.
• Doctors and hospitals have a limit on the amounts they can cost-shift to the private payors.
• The government cannot tax enough to pay for all services Americans demand of our current public health care system, let alone the private side.

At EmSpring, we represent organizations and families trying to cope with the current system and we can see the inevitable outcome if we do nothing. For this reason, we are in favor of the continued debate and eventual passage of a federal healthcare reform and health insurance overhaul that is revenue neutral and  leaves ultimate control for health decisions with patients and their care providers. Since only the Federal government has control over the Internal Revenue Code, we find that the efforts of the States are largely disfunctional and do not support these more regional efforts.

While we do not wish to impose this view on any of our clients or their employees, we are willing to openly support our desire for change and look forward to helping our clients deal with the outcomes.  

Ed Haines
EmSpring