System in poor health
The plight of retired steelworkers who have lost their company-funded medical coverage illustrates the need to reform health-care coverage in the United States. That is not the same as creating a special class of steelworker recipients, as state Rep. Mike Veon, D-14, West Mayfield, wants to do. Last week, Veon proposed the creation of a $225 million trust fund that would be known as the Steelworker Health Care Assistance Retiree Exemption. It would allow non-Medicare retirees to enroll in a commercially available insurance plan and pay a premium of about $100 month, with the trust fund subsidizing the remainder of the coverage costs.
The debt service for the bond would be paid using $15 million in tobacco funds each year. The 25-year trust fund would gradually diminish over the years, along with the pool of retirees, according to Veon.
No one doubts a need exists. Some 20,000 LTV retirees who lost their coverage last year would be joined by 40,000 Bethlehem Steel Corp. retirees if that company’s request to terminate its obligations is approved. These men and women are in a tough spot. They were promised these benefits for their years of service, and picking up the full cost of health-care coverage is financially crippling.
But it would be wrong for the state to create a special trust fund just to cater to them, because these retired steelworkers are not alone.
What about the thousands who have no medical insurance? What about those in their 50s and 60s who lost coverage when they lost their jobs and can’t find new ones with similar benefits? The plight of these men and women is just as great as that of the steelworkers.
The number of Americans who are uninsured is staggering. The Associated Press reports a recent study found that the “sluggish economy and rising health costs are combining to cost more people their health insurance, with 75 million uninsured at some point during 2001 or 2002.” The budget crunch in Harrisburg means that Veon’s proposal is DOA. However, the problem of uninsured and underinsured Americans won’t go away. Nor is it limited to them. Even those with benefits are paying more and more for their coverage. At some point, the Bush administration and Congress must address this matter. The solution doesn’t necessarily have to be a single-payer (government) system. Several private and public-private proposals have been offered in the past that merit attention
The nation’s system of health-care coverage is in poor health. If something isn’t done, and soon, its condition could become terminal.