Defending the Massachusetts Plan
By Arnold Kling
It’s working, according to the Massachusetts Taxpayers Foundation, a non-partisan think tank that consistently advocates higher government spending and taxes in Massachusetts.
From a base of $1.04 billion in fiscal 2006, the state is projected to spend $1.75 billion on healthcare reform in fiscal 2010, an increase of about $700 million, half of which is supported by federal reimbursements. The $350 million state share translates into an average yearly increase of only $88 million.
…With individuals required to have health insurance, many have enrolled for the first time in their employer’s plan or purchased private coverage on their own. Employer-sponsored enrollment has grown by 150,000 and individuals’ private coverage by 40,000 since health reform was adopted. The Foundation estimates that the added cost to Massachusetts employers for newly insured employees and dependents is at least $750 million – more than double the $350 million increase in state spending under health reform.
So, the reform is “working” by mandating a shift in compensation from take-home pay to health insurance and by draining money from the Federal taxpayers. According to the Boston Globe, that makes it a great model for the nation. Thanks to Mark Thoma for the pointer.