A strong public health insurance plan, competing with private insurance companies, will generate $3 trillion in savings over the next decade - nearly triple what could be saved by health reform without a public plan, according to a new report from the Commonwealth Fund, a foundation that studies health issues.

A strong public plan competing with private insurance companies is one of CWA's priorities for health reform this year.  To see a one-page summary of the public plan debate, go to our Issue Spotlight on the subject.  

The public plan, similar to Medicare for people under 65, could generate savings for families, for employers and for governments, the Commonwealth report said.

The public plan could charge premiums "25 percent lower than those currently available for a comparable plan in the individual/small firm market," if it paid doctors and hospitals the same rates paid by Medicare, the report said.  If the plan paid rates midway between those paid by Medicare and the higher rates paid by private insurers, the premium savings would be 16 percent, according to the report.

The public plan, along with a requirement that all employers provide coverage or pay 7 percent of payroll to an insurance fund, would actually increase the number of Americans with employer-provided coverage by 32 million, according to Commonwealth projections.

The public plan would "provide a less expensive alternate for the uninsured and underinsured," the report said, while offering "improved or more affordable coverage for those who are now insured." And with a public plan, "families would have the security of an option that is always available," regardless of changes in employment.

The projections of the savings from a public plan as part of a health reform package are compared to the same package - changes in insurance regulations, a national health insurance exchange, requirements that individuals buy coverage and all employers contribute, expansion of Medicaid and the State Children's Health Insurance Program (SCHIP), premium subsidies for moderate-income individuals and families - without a public plan.

– 07/01/09

Some 3,000 CWA members joined in a rally at the Capital and two days of lobbying last week to demand that the government fix our broken health system.

Lillian Pichardo, from CWA Local 1037 in Newark, N.J., said she had come "because we want to reinforce that we want universal health care. Everywhere in the United States, people are suffering from illness and they can't get treated."

"We need universal health care, and we've got to bring down the cost," agreed Eric Richardson, from CWA Local 3204 in Atlanta. "Health care needs to be available for everyone, and it needs to be affordable for everyone."

The rally was sponsored by Health Care for America Now!, one of CWA's partner organizations.  An estimated 10,000 people attended.  CWA President Larry Cohen, joining other labor, political and community leaders, told the rally crowd, "We have a message to employers: 'Get off our backs and get by our sides and fight together for health care for all.' "

CWA members didn't just stand outside the Capitol with signs - they went inside to tell members of Congress that we want health reform and the Employee Free Choice Act passed this year.  They stressed CWA's priorities for health reform: Make all employers pay their fair share; cover pre-Medicare retirees; provide a public health plan to compete with private insurance companies; and don't tax health benefits.

In all, CWA members talked with 207 members of Congress or their staff members.

Cecelia Valdez, from CWA Local 7026 in Tucson, Ariz., brought along her 11-year-old son, Emilio, when she went to speak to her Congressman, Rep. Raul Grijalva, who offered a pledge of strong support.

"It's getting more and more difficult to negotiate contracts because the company holds us hostage to health care," said Valdez, speaking of recent bargaining with her employer, Qwest, which resulted in workers paying a share of premiums for the first time. She said, "You couldn't see you got a raise because the health care went up."

– 06/30/09

Public opinion polling continues to show a demand for health reform, including a public health plan option.

A recent NBC News/Wall Street Journal Survey shows 55 percent of Americans supporting President Barack Obama's health reform plan, with only 35 percent opposed.  

And a New York Times/CBS News Poll found 72 percent of Americans backing a public health plan, similar to Medicare for people under 65, to compete with private insurance companies. Only 20 percent were opposed. The public plan option is one of CWA's priorities for health reform this year.

	Source: New York Times/CBS News Poll

The polls also found most Americans agree on other CWA priorities as well. In the NBC-Wall Street Journal poll, 55 percent supported, and only 37 percent opposed, requiring all but very small businesses to provide health insurance or pay into a fund for coverage.  CWA wants any reform plan to make sure employers all pay their fair share.

The same survey found only 33 percent supported, while 59 percent opposed, raising money for health reform by taxing expensive benefits.  Currently, workers aren't taxed on health benefits they get from their employers, but some in Congress are calling that to change.  CWA believes this is not a time to add to the tax burden on working families.  

The findings of the latest surveys are consistent with other recent polls, which show that Americans want changes to a health system that costs too much, fails to cover tens of millions of people, and doesn't provide world-class quality.

– 06/30/09

How does a "public plan option" become a "Washington takeover"? How do "cost controls" become "rationing"?

Well, remember when we told you there was a Republican script for opposing health care, and a copy had leaked out? It seems that Republicans remember well. A recent report on NPR found GOP Senators following the script. Listen to three Republican Senators:

• "I think the one thing we don't want most is a Washington takeover." Lamar Alexander, Tennessee.
• "What [most Americans] don't want is a Washington takeover of health care along the lines with what we've already seen with banks, insurance companies and the auto industry." Mitch McConnell, Kentucky.
• "A Washington takeover of health care would result in a stifling of innovation." Roger Wicker, Mississippi.

New York Times economic columnist Dave Leonhardt takes on the other favorite Republican word to attack health reform and defend the status quo: Rationing.

"The r-word has become a rejoinder to anyone who says that this country must reduce its runaway health spending, especially anyone who favors cutting back on treatments that don't have scientific evidence behind them," Leonhardt wrote.

But, he continued, the talk of rationing "isn't really a substantive argument. It's a clever set of buzzwords that tries to hide the fact that societies must make choices."

Care is already rationed in America now - according to whether your employer offers coverage, according to what you can afford, according to what your insurance company decides to cover.

"All the noise about rationing is not really a courageous stand against less medical care," Leonhardt concludes.

– 06/22/09