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Cover:Political Partings


Illustration By Chris Buzelli
Health insurance represents 7.8% of employee compensation, according to the Bureau of Labor Statistics—but that belies its importance to most American workers, and its significance in the lives of most plan sponsors.

Health insurance represents 7.8% of employee compensation, according to the Bureau of Labor Statistics—but that belies its importance to most American workers, and its significance in the lives of most plan sponsors.

A recent Kaiser Family Foundation poll claims that nearly a quarter (23%) of respondents said that, within the past year, they or a member of their household have either taken a new job or stuck with their current job (turned down a new one) primarily because of better health benefits.

In addition, 7% said that, in the past year, they or someone in their household decided to get married in order to have access to a spouse's health-care benefits, or so a spouse could have access to their benefits. Nearly three-fourths (71%) of American workers fear losing health insurance if they change jobs, according to a survey released by the AFL-CIO.

Little wonder, then, that health care—or more specifically, health-care reform—has surfaced as an issue for all the major U.S. presidential aspirants. Not that the issue is a new one on the national scene.

In 1993, then-first lady, now Senator, Hillary Clinton (D-New York) headed the Task Force on National Health Care Reform, a commission that infamously galvanized a nationwide backlash against "Hillarycare"—a backlash that found faces in a series of "Harry and Louise" commercials that featured a couple sitting around the kitchen table fretting about what the government would do to their health care ("having choices we don't like is no choice at all").

That program, developed in highly controversial secret sessions, culminated in proposed legislation that the conservative Heritage Foundation charged would create a "massive top-down, bureaucratic command-and-control system that would meticulously govern virtually every aspect of the delivery and the financing of health-care services for the American people."

However, that, as they say, was then—a time when a "mere" 37 million Americans were without health insurance. Today, that number has swollen to a little less than 47 million, and roughly 19 million of those are drawing a paycheck (of those, 14% were not eligible for coverage under their workplace plan, 30% declined coverage, and the rest had no workplace coverage at their place of employment).

More significantly, even the 162 million who do have health insurance—and roughly 61% owe that reality to insurance made available through their workplace—are struggling to keep up with soaring health-care costs.

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