Gephardt has taken the high road in his bid for the White House when it comes to healthcare reform... by taking a new twist on the bid to provide universal healthcare via tax incentives.

Past Republican proposals have suggested that individuals be allowed to deduct part of their private health insurance premium costs from their taxes. In theory, employees without health coverage will then be able to afford it. In reality, it does nothing for the lower class groups who are most likely to be ininsured, because they can't afford the premiums anyway (a rebate a year from now doesn't help with the groceries today.) Nor does it do anything for the very poorest, who pay no federal income tax but still have very high payroll taxes.

So Gephardt has proposed that employers be required to provide an unspecified level of coverage. Instead of being able to deduct about 30% of their preiums from their taxes, they will be eligible for a 60% refundable tax CREDIT. It rewards businesses who already provide coverage, but does add costs to businesses who don't.

The bottom line: (from Reuters)
"The plan would cost $214 billion in 2005 and $247 billion by 2007, but Gephardt said it would result in more than $316 billion in increased wages and benefits over the first three years and create more jobs by reducing overhead for employers who already offer health insurance.

He said it also would give states a $172 billion stimulus in the first three years by helping them pay their employee health care costs."

I have mixed feelings about this plan. I still think a single-payer system is the most cost effective way to go, but I'm glad to see a new proposal that attempts to address the issue in a way that might actually provide health care coverage for the 41 million Americans who don't have it, without brutalizing either businesses, insurance companies, or employees. The costs to businesses seem do-able, particularly if there are provisions to assist smaller business into group plans to get them a more reasonable rate. Any many reputable companies would LIKE to provide coverage, but they just need a little more help -- which this plan provides. The cost to the taxpayer is pretty minimal... and the costs have at least been calculated, unlike some other plans.

On the other hand, I feel queasy about futher complicating the tax code, and the worst corporate offenders manipulate similar credits to avoid paying income taxes at all. This might contribute to that problem. Insurance companies stand to gain a LOT if such broad requirements for coverage are enacted without at least a basic level of regulation -- they can price-fix to their heart's content and employers will be trapped.

What do you all think? Is this a plan that might actually work? And is it a plan that might gain bipartisan support?