Health Care Insurance Reform: To do it right will require raising revenues

In order to bring the cost of health insurance reform below the $900 billion limit imposed arbitrarily by the White House, the House of Representatives may have to cut government subsidies for low- and middle-class families unable to afford the mandated insurance. The amount of coverage that people will be required to buy may also have to be reduced. In other words, the mandated insurance would be less affordable and less effective than is called for now. If coverage is to be truly universal and affordable, finding new revenues makes more sense than raising the cost and lowering the coverage for those the legislation is intended to help. The House bill as it stands is about $1.2 trillion. Some House Democrats think a windfall profits tax on the revenue boost insurance companies will get from the bill would be only fair. Others want to raise taxes on people making more than $300,000 a year to help pay the bill's costs. Either is a better idea than cutting subsidies or limiting benefits.