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| Updated: 12:20 AM

Congress should reject health care bill

COMPASS: Other points of view

Our health dictates our quality of life, our happiness, our productivity, our success. For many Alaskans, the basic need for health care remains unmet. And, the cost of health care in Alaska spirals upward at an unsustainable rate: total health care expenditures in Alaska more than tripled between 1991 and 2005 from $1.6 billion to $5.3 billion. Those expenses are expected to double again, to more than $10 billion, by 2013.

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Many Alaskans cannot afford to pay for health insurance. Washington, however, is off-track with its efforts to nationalize America's health care system. The current federal legislation placing management of that system squarely in the hands of government falls far short in many ways.

A lot of Alaskans are already priced out of health care coverage and the current federal plan does nothing to address the problem of high insurance premiums. Instead, federal legislation increases out-of-pocket expenses for health care, and increases taxes to pay for it. Families and businesses cannot afford an extra half trillion dollars during a time when America's families are pressed to make ends meet. What's more -- we could be required to pay those taxes next year, but the health care we'll pay for won't be offered until 2014.

Second, Alaska's seniors are already struggling to find a physician who will accept Medicare. Low reimbursement rates have doctors turning away Medicare patients, leaving Alaskans with limited health care choices and access to care. The current federal legislation cuts Medicare by nearly a half trillion dollars, only exacerbating the problem.

Third, the legislation also places significant burdens on Alaska business owners in an already tough economy. Less than one-quarter of small businesses in Alaska can offer their employees health insurance. Yet, current federal proposals will require businesses to provide health insurance or face tax penalties for failing to comply. Adding costs to employers kills even more jobs.

Next, the federal legislation shifts the cost burden from the federal government to the state. This unfunded mandate to increase Medicaid coverage for all legal residents up to 133 percent of the federal poverty level will swing limited state dollars away from other important programs and services. The federal funding for this increase expires after the first year and leaves Alaska with a $120 million hole to fill. For Alaska alone, the cost of the unfunded Medicaid mandate is anticipated to be close to $450 million over the next five years.

The public option will stifle competition and drive private insurance companies out of business. Quite frankly, the government does not have a great track record in the insurance business. If Medicare is any indication, Alaskans can expect low reimbursement rates for physicians who may very well choose to close their doors to patients under the plan.

Finally, no federal proposal addresses the cost impacts to future generations. The price tag for the current Senate bill is estimated at around $2.5 trillion over the next 10 years. Add that to an exponentially growing national debt, new taxes, and staggering consumer debt and the combined effect is predicted to slow any economic recovery. That's a heck of a burden to strap on the backs of our youth.

Neither the Senate, nor House version, of "health care reform" should pass. Instead, a few key pieces could pass in separate legislation. For example, the law should allow insurers to sell health insurance across state lines, allow development of multi-state health insurance exchanges, create affordable coverage for patients with pre-existing conditions, enact junk lawsuit reforms, and fully leverage health information technology and promote healthy behaviors and lifestyles.

Congress needs to go back to the drawing board and try again.


Gov. Sean Parnell served as a state senator and lieutenant governor before succeeding Sarah Palin in July.

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