By Representative Heidi Scheuermann

Things have progressed in Montpelier on several fronts in recent weeks. Much of this activity, however, has been focused on health care reform.

Throughout the gubernatorial campaign, now-Governor Peter Shumlin made a centerpiece of his campaign the creation of a single-payer health care system. And, this week, he introduced his health care legislation.

As expected, this legislation puts the state on a path to a single-payer health care system - one that is to begin now and will be in place for all intents and purposes by 2014. Of course, at this time, the federal government precludes states from moving in this direction, and in fact, precludes states from applying for the necessary waivers until 2017. Regardless, Governor Shumlin and his administration are moving forward.

As I have stated in the past, I have some serious concerns about our state moving toward a single-payer system. Obviously, like most Vermonters, I also have serious concerns about our current health care system and believe we must address the skyrocketing costs of health care services and insurance. I also believe, however, that those increases in costs have resulted in large part from government itself: 1) the state and federal government reimbursing providers for services provided Medicaid and Medicare patients at far less than the actual cost of services; and 2) the various services and requirements mandated over the years by government.

These costs have, therefore, been shifted to the privately insured, resulting in higher rates for Vermonters. We have also neglected for too long addressing the actual costs, but instead have created more and more programs to insure the uninsured (who are uninsured because the cost of insurance is too high).

My most significant concerns, however, about creating a single-payer health care system are two: 1) my skepticism of the claims made by the ardent supporters, and 2) the funding mechanism as outlined in the Hsiao Report that has been proposed to pay for the program - a payroll tax of 3.6% on employees and 10.9 % on employers.

Simply put, these arguments being made for creating this single-payer system - that the system will lower costs and improve quality - are eerily reminiscent of the arguments made in the 90's regarding education, and what resulted in the single-payer education system we now have. Not only did costs, and therefore taxes, skyrocket, but quality has not improved as a result either. The same or similar results in our health care system would be extremely detrimental to our state.

With regard to the possible ramifications of a payroll tax, Cairn Cross, Managing Director of Fresh Tracks Capital, illustrated the concerns best in a Vermont Tiger blog piece entitled: Single Payer: Many Sweatshops: "Single payer financed by a payroll tax will encourage the formation of lower paying jobs in Vermont and the migration of higher paying jobs out of Vermont."

I recommend that anybody interested in the health care reform discussions taking place in Montpelier right now read Mr. Cross' initial analysis.

As always, I encourage you to contact me with any questions or concerns, and I will do my best to keep the people of Stowe and Lamoille County informed. I can be reached at 253-2275 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .