PR – R.I.P. Single Payer

FOR IMMEDIATE RELEASE, December 17, 2014


Back in 2011, Governor Peter Shumlin promised, “We will only go ahead [with Green Mountain Care] if we’re th-3convinced together as a state, that the system is better than what we have, that it costs less, it’s going to help create jobs, and we’ve got the cost containment system right. If we can’t do that, we’ll take our marbles and go home.”

Today he kept that promise amidst the realization that single payer healthcare will do none of those things.

The Administration’s tax policy expert Michael Costa’s press conference presentation showed that Green Mountain Care would require $2.6 billion in new taxes, not the $1.9 -$2.2 billion most recently forecast.

A single payer plan that might have been affordable (an 80% actuarial plan) would not have been better than what we have now, but rather “a step backward.”

Far from helping to create jobs, the 11.5% payroll tax needed to pay for the program would have decimated Vermont’s small businesses, and dealt a serious blow to the state’s ERISA employers, who would have had to pay twice (both taxes and premiums) to keep their current plans.

As for cost containment, Costa’s numbers show Green Mountain Care moving into the red just four years into its existence.

In addition, the promised hundreds of millions in cost savings were non-existent, Shumlin’s optimism for getting necessary federal waivers was misplaced, and the complexity of being a small state going it alone was naively underestimated.

The question that remains here is why did it take so long for advocates to realize what has been so obvious since very early on in this process? All of these “realizations” have been pointed out numerous times over the three-and-a-half years by critics of Green Mountain Care, including the Ethan Allen Institute.

EAI president Rob Roper said, “The high costs and practical roadblocks that doomed Green Mountain Care have always been there to see for those willing to look. We are proud to have played a role in educating the public as to the many pitfalls of single payer, and are gratified that the ill-conceived program is dead, at least for now. We are, however, sorry that three plus years and millions of dollars were wasted unnecessarily.”

Reform of our healthcare system is necessary, and now that the government-run solutions have proven a failure, it’s time to look at some realistic free market solutions that will reduce costs, expand coverage, and attract new doctors to the Green Mountain State.

###

Contact: Rob Roper
President, Ethan Allen Institute
802-999-8145, rob@ethanallen.org

 

{ 1 comment… read it below or add one }

Valerie Mullin December 18, 2014 at 12:43 am

What a shame. millions of Vermont dollars which could have been better spent, gone because of a dream of what common sense Vermonter’s knew should never come to fruition. I don’t trust Shumlin and his followers not to have another pipe dream up their sleeve to appease the dreamers.

Reply

Leave a Comment

{ 3 trackbacks }

Previous post:

Next post:

About Us

The Ethan Allen Institute is Vermont’s free-market public policy research and education organization. Founded in 1993, we are one of fifty-plus similar but independent state-level, public policy organizations around the country which exchange ideas and information through the State Policy Network.
Read more...

Latest News

Tax Plan, Schmax Plan: It’s The Spending, Stupid

by Chris Campion The GOP has recently been working on tax reform, and both the House and Senate have versions of tax reform that are currently being hashed...

Renewable Policies Responsible for GMP’s $80 million rate increase

by Guy Page Green Mountain Power’s proposed 2018 5% rate increase will cost ratepayers $80 million, Vermontbiz.com said November 27. GMP spokesperson Kristen Carlson blames the hike on increased transmission, regional...

Exxon Mobil ‘s “Green Preening”

by John McClaughry Here’s a news item some will find surprising. The American Legislative Exchange Council is a conservative business-oriented association of legislators and corporation interests. Recently it...

New Hampshire Lowers Taxes, Raises Revenue

by Rob Roper The New Hampshire Union Leader recently posted an editorial about their legislature’s 2015 decision to cut taxes on New Hampshire businesses. The tax cuts are...

Survey: Do You Support the ESSEX Carbon Tax Proposal

TAKE THE SURVEY! Do you support the new “ESSEX” Carbon Tax proposal? This would ultimately be a $240 million tax on gasoline (32¢/gal), heating oil and diesel fuel...

Video