How Healthcare Reform Works in the Free Market

Okay, so when it rains, it pours. After not blogging for two months, I'm blogging twice in a day. A colleague of mine sent me this link last week with the subject line "Unreal." I would say it is not unreal at all, but very likely. If you wonder where the free market and the new health care proposal will intersect, be sure to check it out.

Summary: when Democratic Senators requested data from some of America's largest companies about their insurance cost increases as a result of the new health care bill, documents showed that all of them had considered dropping their employee sponsored benefit programs. Why? Because it would be cheaper to simply pay government penalties for dropping employees than actually paying for their health insurance.

Of course, the natural Democratic response will be to raise the penalties to attempt to make these companies maintain employee benefits, but anyone who has any experience paying for the rising costs of employee benefits certainly will understand the siren song of "free government health care."

Unintended Consequences

Want to get a better feel for what Georgia is going to be facing from a budgetary standpoint if the Democrats' Health Care Reform Bill passes? Be sure to read this Washington Times commentary from Lt. Governor Casey Cagle to understand what the bill could mean to Georgia and other states who already struggle to get the dollars they are promised for health care out of Washington (our local hospitals often then have to struggle to get the funds from the state).

While the President may claim that your federal taxes will not go up if the bill passes, you can bet your state ones will. A $2.4 billion unfunded mandate on top of an already stressed-to-the-breaking-point state budget will be a back breaker.

Clearing off the Desk

Highlights of what has crossed my desk this week.....

• Like Tom Friedman, I too am a clean energy hawk. Read his column today and you'll wonder why our national chambers of commerce are so opposed to plans to make America less dependent on foreign oil. As I told the good folks at Beyond The Trestle, if Republicans could come up with any sort of responsible, environmental platform without it getting co-opted by big business, they would be able to grab a huge new demographic.
• Atlanta has captured another high-profile telecom company -- the North American HQ of consolidating Sony Ericsson. Sony is known for its high profile sports sponsorships (see photo) and slick technology (see other photo). Word on the street is that even state officials were surprised by the announcement, which explains why no chambers of commerce or politicians had press conferences scheduled, quotes ready, or any data on the number of jobs coming to Atlanta or where they would be located. If the company moves to Gwinnett, it could be a positive for our region. With the opening of the Kia Plant in West Point and the moves of NCR and Sony Ericsson in the second half of 2009, this has turned out to be a solid year for Georgia's Department of Economic Development. It also highlights our own area's continued lack of focus and success in larger economic development efforts. Not that we would have a chance at a Sony Ericsson, but the point is that there are opportunities in recessions. Our opportunity is to fix our economic development infrastructure. I hope our leaders seize that opportunity.
  
• Mayor Jeff Thomas has resigned in High Shoals. I only met Jeff a few times at political forums, and he seemed like a nice guy. But 18 years is a long time to serve anywhere. I hope this changing community can find some unity and move forward. With SPLOST funds come some opportunity to move forward on key initiatives. The best chronicle of all things High Shoals can be found at Councilman Steve Holzman's blog.
• Peggy Noonan, as always, offers wisdom. I hope the President listens.
• Those of you who want some free communications advice should be sure to read this column from Myra Blackmon. Some wisdom there.
• State Rep. Doug McKillip and Spencer Frye deserve a lot of credit for pushing this idea to the forefront. It is something I first discussed with a group during Annette Nelson's failed campaign for Athens-Clarke Commission years ago, but no one really ever wrapped their arms around it. Finding a way to stop the erosion of aging apartments in Athens makes a lot of sense, and ReNew Athens seems to be a sound approach, especially with the expertise of Frye and Habitat for Humanity at the table.
  
• I'm sorry, but the Barrow County Facebook teacher controversy is overwrought and unnecessary. They need to apologize, rehire the teacher, and allow this thing to disappear. See here and here for updates and interesting comments -- one likely theory is that the initial complaint e-mail was sent by a teacher, not a parent, and delivered from an anonymous e-mail address. Companies and organizations need to be sure their HR and marketing leaders understand social media before they start legislating it.
• The new mayor of Hartwell got arrested for DUI. Not the best way to start.
  
• One of the most demagogued pieces of health care reform has become end-of-life counseling. It's one of the few parts I like. Having tough conversations before you are on the operating table just makes sense. A massive amount of our overall health care costs are spent in the last 2-3 years of life. If this isn't what you want, you should have the opportunity to talk with your doctor and make that decision. A democrat tells the story rather effectively here.
• Lee Becker provides an update on the courthouse situation and the new QuikTrip planned for the University Parkway/Oconee Connector intersection.
  
• A couple of great books I have had the pleasure of reading lately if anyone is looking for some good non-fiction: Born to Run, The Wild Trees, and The Wise Men.
  

Musings from the Dome

Some goings on at the Dome that have local relevance:

• Heard from a source at the Dome yesterday who assured me that the House Leadership and others are working aggressively to break the logjam on transportation. It gives me a little more hope than I had on Tuesday that something may happen. My friend said that he has never seen the spirit of cooperation down there the way it is right now, and that's great. But cooperation alone ain't gonna cut it -- someone is going to have to seriously budge to make something happen in the waning days of the session, as the Governor is using his SRTA/GRTA act as a litmus test for passing the funding bills. My big wish is that the Governor hadn't thrown the "new governance" stink bomb into the mix this year, as transportation reform was complicated enough with competing funding bills. My opinion: we should tackle funding this year (recognizing it will be voted on in 2010 and a lot of voter education will be necessary for either TSPLOST or a statewide sales tax) and reform governance next year. My preference is still the statewide bill, which will help quickly implement some of the major improvements (rail, freight, ports, highways, transit) that we need, but I could live with any reasonable compromise that provides dedicated funding, and I think most Georgians could too. Opponents are attempting to use references to underground tunnels and the northern arc in the statewide bill to gin up opposition, but it is important to note that these are proposed as public-private ventures, not paid for with the sales tax funds. Note also this op-ed on transportation from the Rome News Tribune, always one of the state's more thoughtful publications.
  
• One has to wonder if the Governor has an axe to grind against hospitals after yesterday's announcement and his earlier attempt to increase taxes on their revenues. Is there some sort of massive largess in our system that I am missing? This whole discussion hearkens back to my earlier point about cutting the state budget -- in my opinion, cutting around the edges just makes everything weaker. Look, we all know this is a TOUGH budget year. However, as I said in January, I wish we could cut off entire portions of the government instead and retain funding for transportation, healthcare, and education -- the things Georgians and local governments can't fund themselves. David Shafer, I might be coming around to your way of thinking on the budget process.
  
• I am pleased that Austin Scott is talking sense to his Republican colleagues in the House. Why do they keep trying to tell local governments how to do business? How would Georgia Republicans respond if the Feds told them how much they could tax, what they could spend it on, and where their employees need to live? It makes no sense, and the Brunswick News agrees (story at left -- wish I could link to their editorials) -- I just wish Jerry Keen and Chip Rogers (see comments below) would listen to them.