In last month’s “To Your Health” column we promoted public single-payer health care reform, the Pennsylvania Family and Business Health Care Security Act (SB300/HB1660) as an economic stimulus. We explained in detail how this legislation would improve economic health. Always remember this is not a Rendell or a Republican proposal.

Upon learning in a recent Reading Eagle article that the city of Reading, PA is expected to have a $3.5 million deficit this year, which may entail loss of jobs and services, we decided to investigate whether our version of health care reform could have a positive impact on Reading’s bottom line. What we found was staggering.

The city of Reading currently pays approximately 27% of payroll for health insurance costs. That percentage would be reduced to, and fixed at, just 10% of payroll under our PA single-payer reform proposal, saving the city of Reading about $7 million annually. Thus, a $3.5 million deficit becomes a $3.5 million surplus, with no cuts in personnel or services. Workers’ Compensation costs should drop dramatically as well, yielding additional savings. Quite an economic miracle worker, this Family and Business Health Care Security Act.

Armed with this information, we presented our remarkable findings to Mayor Tom McMahon and Reading City Council at the Council meeting on Monday, March 10, 2008. We stressed the eye-popping figures above and gave city officials packets containing our CS2 March, 2008, “To Your Health” column and Ron’s CS2 March, 2008, “Be a Single-Payer Reform Ambassador” printouts as well as a www.HealthCare4AllPA.org brochure.

We concluded the address with an invitation that City Council and Mayor McMahon become allies in the movement for public single-payer health care reform and a better bottom line for Pennsylvania’s cities. Some city officials have indicated a willingness to open a dialogue with us in order to learn more about the windfall that this health care reform offers. We hope to have more to report on this effort in future issues of CS2.

Union leaders who represent city employees can rest assured that the medical benefits of our bill are second to none (See: Be a Single-Payer Reform Ambassador) with no deductibles, no co-pays, and no caps. People are free to choose their own doctors and are not required to stay within a “network”. Additionally, our bill saves jobs.

Readers of CS2 are encouraged to investigate their own cities, boroughs, townships, and school districts to determine what financial advantages SB300/HB1660 can provide for their government bodies. The important question to ask is, “What % of payroll is represented by health insurance costs?” If the % of payroll exceeds 10%, SB300/HB1660 will save that government body money. If you wish to get more analytical and further crunch the numbers, find out the dollar amount of health insurance costs and the dollar amount of payroll to figure the savings in dollars. Simply take 10% of payroll and subtract that amount from their current cost of health insurance. That is the amount of savings. Also, find out how much money goes into Workers’ Compensation. Reduce that by approximately 50% to discover even more savings.

We think such investigation by CS2 readers will reveal dramatic results. For example, in the Antietam School District where we reside, health insurance costs consume approximately 22% of payroll. Hence, with the reform we propose, Antietam would reduce health insurance costs by over 50%. Let us know the results of your research.

It’s time we stopped turning our money over to health insurance corporations that are skimming 25% off the top of every tax dollar devoted to private health insurance costs. It isn’t used to provide health care, but rather goes into profits and overhead such as marketing and outrageous CEO salaries.

Here’s what to do. Pick up the phone or go online and do the research. Then do the math and spread the word. What are we waiting for?

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