A Tax-Driven, Government System Is Not The Way To Go

The following article written by Carolyn Branagan - Franklin-1, Fairfax/Georgia appeared in the Tuesday, April 26 Edition of The St. Albans Messenger

A tax-driven, government system is not the way to go

I care about health care. I was elected last fall in part because of my desire to establish services for the most vulnerable in our state. There should be a safety net, a set of services all Vermonters should be able to expect regardless of ability to pay.

However, someone has to pay! We cannot institute a change that will result in businesses closing and leaving the state or make many of the state's wealthiest citizens choose to leave the state taking their income tax revenue with them. H524 was the most controversial bill to come before the House since I’ve been elected. This bill has a chilling effect on business.

Increasing taxes scares people. Many are unsure if they are going to gain or loose benefits in exchange for having their taxes raised. The Health Care bill H 524 will not lower administrative costs. Since it allows people to keep their private insurance or obtain supplemental Insurance, private insurers will still be in the state and their administrative costs will be reflected in their premiums. Further, Medicaid and Medicare will continue to be administered by the federal government, which will not relieve administrative burden on providers for processing paperwork on multiple payers. The bill fails to mention that the state will have to operate its own insurance agency or contract it out to a private vendor.

Single payer means "government run". Figures indicate that in fiscal 2006 $3.8 billion will be spent in Vermont on health care. We know that $1.8 billion will be paid by existing government programs including Medicare and Medicaid. That means the remaining $2 billion that is now paid by Vermont business and private sources voluntarily will be transferred to a tax based system, personal choice transferred to mandatory payment. There are not many things government can do better than private companies.

Additionally, in a small state like Vermont the boomerang effect of creating a government run health care plan could severely impact our state. People may move to Vermont just to get free health care, physicians may leave the state because their salaries are capped and Vermonters needing medical treatment may need to be delayed due to rationing.

H524 is not the answer. It just sets up an implementation schedule for a $2 billion government run health care system. There are alternatives that can address the root of our health care problems. The alternatives include slowing down the current rate of health care inflation. There needs to be commitment in the House to a new health care system that is not political. We can create one. We can write one that helps Vermonters if there is consensus.

There are parts of the bill that should go forward. Section 2, the Study section, is well thought out. It calls for investigating the economic impact of implementing a universal health care system funded by broad based taxes, calls for the investigation of funding of various financing options for financing Green Mountain Health and investigates options for Workers Compensation. These studies need to be completed. The January 2006 completion date for the studies is doable. Also needed is the public engagement process outlined in Section 4. The Joint Health Reform Committee needs to hear from the public and needs to bring their ideas back to the General Assembly.

This is where the bill should end.

I was co-sponsor with Representative Tom Koch from Barre of an amendment which would have cleared the bill of everything but the studies. I was very disappointed when this amendment failed, it was the common ground, containing the things almost everyone in the House agreed needed to be done. Unfortunately, it was defeated along party Lines.

The bill leaves too much unstated. The vague statements in the bill leave too much open to speculation. The unanswered questions arising from the lack of direction are causing many of our citizens uneasiness as evidenced by the amount of mail and e-mail many legislators received on this issue. This bill leaves many unanswered questions including what services are covered, how will the services be delivered, who will pay for the services, what they cost, and how will they be paid for.

The Vermont Tax Commissioner Tom Pelham wrote "Vermonters are generous to their state government. While our ability to pay taxes is relatively modest, our tax burdens are high. Vermonters' incomes generally fall in the middle of the pack among the 50 states. We rank 22nd in both per capita income and medium income for a family of four. However our tax burdens are top tier........ Single payer would become the 800 pound gorilla in the state budget, absorbing an ever increasing share of the budget and denying resources to other priorities such as environmental, law enforcement and higher education programs, among others. Unlike the current House, both Governors Dean and Douglas have pursued more fiscally responsible approaches to reforming our health care system. Through such approaches the appropriate balance between affordable health care and affordable taxes will be achieved."

Affordable taxes are always elusive. What we should do is provide an environment where business can provide enough money for our health care needs. If the House wants to explore something then it should be the cost of health care. Each year costs increase and they will continue to increase under this plan.

I represent a small district. It is a farming community evolving from an agriculturally based economy to one that is business based. Many of my constituents drive more than an hour each way to work. They are busy people. They trust me to listen to the proceedings in Montpelier. They are depending on me to make decisions in their best interests. This is a trust I take very seriously In their best interests, I voted against this bill.
Representative Carolyn Branagan Franklin-1, Fairfax/Georgia