I read a really great article in yesterday's New York Times business section about what is going on with health care reform in congress. The by line was for Jackie Calmes. I don't think I had heard that name before. But, in combination with all the other news coverage of what is going on, it stiched a lot of things together for me.

Apparently all of the public concern about the deficit, which the republicans are trying feabily to exploit, got Obama to take a position that health care "reform" has to be payed for and not add to the deficit. Congress didn't really want Obama to insist on that, because that means they have to actually make some harder choices about either raising funds or cutting something somewhere else.

According to this article and other sources, congress is discussing three different ways to raise the money - (1) taxing upper income people more, (2) including all or some of the money that employees get for health care policies from their employers as taxable income, or (3) sin taxes, such as on beer, tobacco, and soft drinks.

All of these ways of raising money are feasible, but all have supposedly "politically powerful" interest groups that are adamantly against it for a number of reasons. The top Democrat on the Senate Finance committee, Baucus, which is taking this up, isn't keen on any of the ideas because he can't get republican buy in.

They should use all three methods to raise the money to pay for health care. But there are also a lot of places in the federal budget to pick up savings - military, public land management, farm subsidies. It doesn't have to be drastic either on the revenue or the cost side, but if the trends were going in the right direction, it would blunt much of the impact that a flat out deficit funding would have. This would do as much or more to improve the economy than most things. It would befuddle the republicans, who would have a hard time opposing it.

Another aspect of this that has gotten a lot of airplay is the so-called "public or single payer option." This is a government run health care program that would compete with the insurance companies. I thought maybe Obama would not stand firm for this, but it seems like he's trying to get it in the bill. The republicans like to call it socialism. That's so lame. So much of our society is already "socialist" under their definition, and much of it was instituted by their people!

It's going to be interesting to see how it all comes out. If the Dems don't have the guts to actually raise the money and work out some cost cutting measures in order to make the program a "paygo" program, and the reform effort fails like past efforts, it will cost both parties in the longer term. But any side that looks like they aren't willing to give a little for the benefit of the nation, is going to be scorned and seen in low esteemed.The health care system is really bad - it's not based on compassion - it's based on profit. It's not based on efficiency, it's based on maximizing treatments. It's complicated and for the seriously ill, it's too much to deal with when you are trying to get well. Oh, and did I say that it is tremendously expensive?

Congress, quit listening to lobbyists and do the right thing. Pass true health care reform and raise the money to pay for it. The people will support you.