Thursday, January 29, 2015

Vermont's Health Care Dissapointment


The state of Vermont has recently been working on a single-payer health care plan for all residents. Robin Lunge, Vermont’s director of health reform, has spent a significant amount of time trying to make the monetary side of the plan work out.  She employed Jonathan Gruber, an M.I.T. economist, to create and run models to project the cost of Vermont’s plan under several scenarios. As the financials became more set in stone and they closed in on the governor’s preferred plan, they began to realize that the whole idea was not realistic. They found that it would require around $2.5 billion in additional tax revenue, which is almost as large as the $2.7 billion that Vermont collects in taxes annually. Lunge tried to change the figures around but it did not work out and she had to accept that the program was going to be much more costly than initial estimate of $1.6 billion. When they held the press conference to announce the results, the audience was in awe as many expected governor Shumlin to announce his plan for comprehensive health care coverage instead of shutting it down.
I think that this has serious implications relating to the entire country adopting universal health care. One of the articles I read stated that: “over the past three years, Vermont has come closer than any other state in building a publicly financed, universal health care system” (Kliff). Vermont’s failure after being the country’s leader in health reform does not bode well for those who are a fan of universal health care. If they can’t pull it off how could the entire country? It clearly would be incredibly expensive to do and we live in a country where many people are already unhappy with the high tax rates. I do not know much about health care policy, but thought that this was an interesting story that added some valuable perspective.

-Parker Calandra

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