Clinton's Health Plan Shows She's Learned a Thing or Two

What About Taxes?

When universal health care enters the discussion, so do the cries of higher taxes. Clinton says money for the plan will come from a few sources. First, she had outlined significant savings from through cost-cutting -- to the tune of $120 billion a year.

Health insurance companies spend $50 billion a year working to denying coverage to patients for reasons such as pre-existing conditions, according to Clinton. Clinton's plan guarantees coverage for all.

Next she plans to roll back some of the tax cuts passed by President Bush that favor the extremely wealthy, including one that gives preferential treatment to taxpayers earning more than $250,000 a year in the form of a taxpayer-funded subsidy. She would also not renew some of the tax cuts for the wealthiest Americans and allow them to return to pre-Bush levels.

The plan doesn't represent dramatic change. Health-care companies and drug companies will be part of the system that offers more choices. The plan mandates universal coverage, which everyone would have to buy. That differs from some other candidates' plans, including Sen. Barack Obama's (D., Ill.). Enforcement mechanisms for buying coverage would be left up to Congress to decide.

Effect on Drug Companies

What effect would this plan have on the health care and drug companies? Insurance companies would still compete in the marketplace. I think the effect on health insurance companies would be minimal. They'd gain some uncovered people with severe conditions, but that should be offset by also gaining many low-risk young people.