In 1994, 37 million Americans were uninsured. By 2007, that number had ballooned to 47 million. Between 1996 and 2007, the average employee's spending on health premiums for his family shot up 85 percent -- and incomes, of course, have not followed. "My personal index," says Len Nichols, director of the New America Foundation's health policy program, "is the ratio of family premiums to median family income. In 1987, it was 7 percent. Today it's 17 percent. That fundamental dynamic, that health care costs are growing so much faster than economic productivity, means that even though unemployment is so low and the macro-economic indicators are good, there's still intense, acute anxiety." In other words, the concerns that once appeared only during recessions are now an enduring fact of American life. The health care system is so expensive, so unwieldy, so unstable, that today's participants feel much like the victims of the early-'90s recession.
Business also seems exhausted by the ceaseless march of health care costs and ready for reform. In 1994, when managed care was just beginning to squeeze cost growth, health spending grew by a mere 4.1 percent. It looked like the private sector might prove able to control costs just fine. But the gains from managed care dissipated as the 1990s wore on, and in 2005, health spending grew by 7.2 percent. Much of that cost was borne by the business community.
"It's a global competitiveness issue," says Charles Kolb, president of the Committee for Economic Development, a business coalition. "And even if it weren't, it's a cost issue. Health care costs are growing at a rate that's simply not sustainable. [Our members] are in the business of business, not the business of health care." ...
...Wyden's Healthy Americans Act is a universal coverage bill that opens up federal employee-style insurance menus to everyone in the country, subsidizes insurance up to 350 percent of the poverty line, and slows spending growth. Remarkably, Wyden's bill is cosponsored by six Republicans: Robert Bennett, Judd Gregg, Norm Coleman, Lamar Alexander, Mike Crapo, and Chuck Grassley. One of those Republicans is from Utah, the most conservative state in the union.