BizJournals Portfolio

On Life Support

Scared Sick Scared Sick

As President Obama pushes for sweeping health care reforms that  Democrats expect to include a government insurance option, it's worth seeing how well the federal Medicare program performs. Success, it seems, isn't a guarantee.

Read More

Great Care, Cheap Great Care, Cheap

Mayo Clinic’s pay plan differs from other regions. And that makes all the difference.

Read More

PREV 2 of 2

But no matter how much the administration tries to shift attention away from the public option, it’s likely to remain a pivotal debate issue. Large and small employers are opposed to another government plan—not because they're fearful of a socialist takeover. Rather, businesses see the large role government already has in the system as adding to the cost burden to the private sector.

Large employers estimate they pay $89 billion a year in additional costs because doctors and hospitals charge them more to make up for underpayment by Medicare and Medicaid. The government insurance plans don't reimburse doctors and hospitals on a dollar-for-dollar basis.

"Anything that increases the number of people in a Medicare-like plan is going to create a cost shift" to business, says Helen Darling, president of the National Business Group on Health. The group represents the largest U.S. employers.

Darling says big business probably will support the compromise plan on a public option, though she hasn't seen a detailed proposal. "It certainly sounds promising," she says.

Lori Lodes, a spokeswoman for the Service Employees International Union, says she can't comment on whether her group would support compromise on a public option until a plan is presented, but she didn't rule it out.

"We still think the best way to drive down costs is the public plan, but we don't want to jump out on something we haven't seen either," she says.

As the second-biggest union in the country, with enormous political clout, SEIU is a driving force in the health care debate. If it backs an Obama compromise, a number of liberal Democrats are expected to drop their expected objections and fall in line.

Despite the anger on display at public meetings and events—an argument led to a man biting off another man's finger at a rally in California last week—there's ample support for some type of reform among business groups. Among the industry support: drug companies, hospitals, and doctors. Small business is in favor as long as there's no mandate for the smallest employers. Consumer and labor groups are backing Obama. The AARP, the largest seniors group, is running advertisements in favor of reform.

Now the president has to convince the groups that he's ready to bend on things like the public option in order to get some version of reform passed. And he needs to get his party to go along with him.

"Whatever they pass, they'll claim it's a step toward health care reform," says Ira Loss, senior health analyst at Washington Analysis. "In Washington, compromise is what people say it is."


Brett Chase covers health care for Portfolio.com and writes the blog Heavy Doses.

Comments

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.

Connect With Portfolio.com

Come on, like us—you know you want to.

Follow us and if you're an innovative entrepreneur, we'll return the favor.

Today's top stories, conversation starters, and the back nine business bites.

spotlight on

Slideshows

500 Startups Hits New York

Dave McClure's brainchild makes its way to New York and introduces East Coast money folks to some intriguing new companies. View Slideshow