Obama promises to create universal health care by the end of his first term. Every American would have “affordable, comprehensive, and portable” coverage. His plan (Overview Here, Full Plan Here) focuses on reforming the current system to make it more efficient while investing in prevention and management treatment to reduce the costs of catastrophic health issues. The savings from streamlining the health care delivery system will provide some of the funds needed to expand coverage universally. Additionally employers will be required to contribute to their employees’ health costs, either by providing insurance directly, or by paying for public coverage.
The plan provides a multitude of ways to cuts costs, but doesn’t offer any kind of assurance that these alone will pay for the program. Surely it is impossible to know exactly how the cost-saving measure will pan out and even harder to know what kind of employer contributions he could get through congress, but despite this he makes no mention of any use of public funds. No corresponding cuts in the national budget, or increases in taxes. Obviously this is a very early version of the plan, but it seems to me that national health care might require more than just increased efficiency to reduce patients’ costs so dramatically. I for one think this will end up requiring either a tax increase (maybe by repealing the Bush tax cuts and/or repealing the Reagan tax cuts), or shifting funding from another area of the federal budget (perhaps military spending).