Los Angeles Times Examines Governors' Different Approaches To Address Rising Health Costs

Main Category: Health Insurance / Medical Insurance
Article Date: 16 Mar 2006 - 21:00 PDT

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The Los Angeles Times on Tuesday examined how governors in different states are "pursuing divergent policies to control health care costs and expand access to services" by deciding whether to reinforce the existing third-party payer system or to shift more costs to individuals. According to the Times, Democratic proposals in several states are aimed at "stabilizing and expanding group-based coverage." Democratic efforts in California, Illinois and New Mexico seek to guarantee coverage for all children, while legislation in Maryland, Wisconsin and Iowa seeks to encourage or require employers to provide health insurance to workers. For example, Illinois Gov. Rod Blagojevich (D) in November 2005 signed "first-in the nation" legislation guaranteeing all children in the state access to health insurance, and Maryland recently approved the so-called "Wal-Mart" law, which requires large employers to spend at least 8% of their payroll on employee health care, the Times reports. Meanwhile, Republican governors are more "in tune" with President Bush's agenda, focusing on controlling government spending by "empower[ing]" U.S. residents with options to purchase their own insurance through health savings accounts or "bare-bones policies," according to the Times. Florida Gov. Jeb Bush (R) will implement "one of the most ambitious" Republican proposals, under which the state's Medicaid program will change from a defined benefit program to a defined contribution program. Other governors, such as Massachusetts Gov. Mitt Romney (R), are pushing plans that combine Republican and Democratic ideas. Romney's plan would require all state residents to purchase health insurance, but the state government would offer financial aid to lower-income residents. According to the Times, as these different approaches "are honed at the state level, the likelihood increases that they will become more prominent in Washington -- and on the 2008 presidential campaign trail" (Brownstein, Los Angeles Times, 3/14).

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