Where Have We Heard This Before?

Democratic party presidential candidate Barack Obama thinks that he's got the solution to providing health insurance to everyone:

Under Obama's proposal, everyone would be able to obtain health insurance, and the Illinois senator would create a National Health Insurance Exchange to monitor insurance companies in offering the coverage. In essence, Obama's plan retains the private insurance system but injects additional money into the system to pay for the expanded coverage.

Those who can't afford coverage would get a subsidy on a sliding scale depending on their income, and virtually all businesses would have to share in the cost of coverage for their workers. The plan that would be offered would be similar to the one covering members of Congress.

His package would prohibit insurance companies from refusing coverage because of pre-existing conditions.

"My plan begins by covering every American. If you already have health insurance, the only thing that will change for you under this plan is that the amount of money you will spend on premiums will be less," Obama said. "If you are one of 45 million Americans who don't have health insurance, you will after this plan becomes law."

As it stands right now, it's an intriguing idea, except for the part about paying for it. Who will pay for it, and how will this program cost? Once you dig into the numbers, it looks like this policy is a nonstarter - and it also is a repeat of the program he suggested earlier in the year when he announced he was running. Obama is also not the first candidate to suggest a universal health care policy; just ask Sen. Hillary Clinton.

Obama says that some small businesses will be forced (Obama calls it "asked") to pick up some of the costs, while he calls on repealing the Bush tax cuts for the high income taxpayers. Nothing like throwing in a little class warfare in to the mix of health care coverage.

States have already found a mixed bag on their own universal health care coverage programs, and some are looking to reform their own state programs because few have actually sought the coverage.

One problem that may crop up is that as the federal government takes a larger chunk of the health care insurance burden, it will create disincentives for existing businesses to carry health insurance; they will further cut back the company contributions to the health insurance programs increasing the costs to employees.

Far from decreasing the costs to taxpayers, Obama's program will likely have the opposite effect - it will raise taxes and increase costs to workers whose insurance plan costs will rise even further.