U.S. insurers send warnings on health care
WASHINGTON -- The U.S. insurance industry Tuesday warned in stark terms that a proposed government insurance plan would dismantle the employer coverage Americans have relied on for a half century and overtake the system.
In a joint letter to senators, the two largest industry groups also said they do not believe it is possible to design a government plan that can compete fairly with private companies in a revamped health care market. That particular statement seemed to be aimed at lawmakers of both parties who are seeking a compromise on the contentious issue.
Release of the letter from America's Health Insurance Plans and the Blue Cross Blue Shield Association came as House Democrats pushed forward with a partisan health care bill. Meanwhile, key Senate Democrats were still laboring to achieve an elusive bipartisan compromise on President Obama's top legislative priority of controlling costs and providing health coverage to 50 million uninsured Americans. Obama's goal for signing a bill in October appears in doubt.
Obama campaigned on a promise of offering affordable health care to all Americans. But the recession and a deepening budget deficit have made it difficult to win support for costly new programs. Obama says overhauling health care is vital to the United States' long-term economic recovery.
The United States is the only developed nation that does not have a comprehensive health care plan for all its citizens. The government provides health care to the poor, the elderly and some veterans, but most Americans rely on private insurance through their employers. However, not all employers provide insurance and not everyone can afford to buy it on their own.
Recent media polls have found strong public support for the idea of a government plan. It would compete with private companies to offer coverage to individuals and small businesses, but eventually might be opened to large employers as well. The positive public reaction to the idea has emboldened liberals, who are arguing that Democrats should not compromise.
