Hospital firms outline plan for universal care

WASHINGTON -- The largest hospital operators in the country say providing health insurance for all Americans can be achieved by expanding government coverage, and by giving lower-income Americans vouchers to pay for the private plan of their choice.

The strategy presented by the Federation for American Hospitals differs somewhat from other recent proposals -- including one from Wal-Mart and the largest US union -- by detailing how the public and private sectors should collaborate to provide coverage for the nation's 47 million uninsured. The plan was posted to the federation's website yesterday and will be discussed at a press conference scheduled for today.

The federation's members include Universal Health Services Inc., Tenet Healthcare Corp., and Health South Corp.

Government economists said yesterday US healthcare spending will outpace overall economic growth in the coming decade, accounting for one out of every five dollars spent in the United States by 2017.

Expanding health coverage is particularly in the self-interest of hospitals, experts say, as many have become saddled with debt as a result of treating those who cannot afford to pay for treatment.

The federation's plan would incorporate new government spending alongside the existing private insurance programs offered by companies such as WellPoint Inc. and Aetna Inc. to insure about 98 percent of Americans.

Specifically, the plan would also expand federal and state programs like Medicaid by automatically enrolling low-income individuals and families based on government data, such as income tax reporting and eligibility for food stamps. Those who are ineligible for public programs but still cannot afford healthcare would receive subsidies, which would allow them to select their own private healthcare plan.

Taking a cue from recent proposals outlined in Massachusetts and California, the plan would require all adults who can afford insurance to buy it for themselves and their children.