Monday, August 10, 2009

Study: Healthcare reform will hurt low wage earners

So, like Government education, Government Mail delivery, Government Housing, Government Mass Transit (Amtrak), etc. etc. etc., Government Healthcare will hurt most those who are promised the most by politicians.

A lengthy study co-authored by Steven Nyce and Syl Schieber was released today that could well have devastating implications for the health care reform debate if it’s widely disseminated and properly understood. (Syl Schieber is a noted pension/benefits expert with Watson Wyatt. He’s currently chairman of the Social Security Advisory Board, and served on the Clinton Administration’s Social Security Advisory Council of 1994-96.)

In a nutshell, the study models the costs to worker wages of expanding health care coverage, under various health care cost inflation scenarios.

This from the executive summary:
If we expanded health insurance coverage but our current health cost inflation rate continued unabated, the higher overall costs would result in falling wages at the bottom of the earnings spectrum and very slow wage growth on up the earnings distribution. These dismal wage outcomes would persist over at least the next couple of decades, possibly longer.