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

Hillary Clinton's much-awaited health care plan has finally arrived. Let the war of words begin.

Sen. Clinton (D., N.Y.) spoke Monday in Iowa, putting in place the last piece of her campaign's three-pronged platform to reform health care in America. In May, she introduced a first piece to reduce health care costs; her second piece addressed health care quality. The final component: universal health care.

It's not often one gets a second chance in life. Clinton finds herself in that position with health care reform in the 2008 presidential election. Her second effort at universal health care shows she learned from her husband President Bill Clinton's 1993 health-care reform defeat. Given that this proposal looks far more business-friendly than the 1993 debacle, it seems clear she understands her plan's impact on the market.

Under Clinton's new plan, insured individuals would be able to keep their current coverage and doctors. Both the insured and the uninsured could choose from a variety of private plans based on what's available to members of Congress.

These options already are managed by the Federal Employee Health Benefit Program (FEHBP). A public plan similar to Medicare also would be offered. All plans would have a minimum standard of care and would be priced on a sliding scale.

Small-Business Minded

One reason the 1993 plan failed was the heavy burden it placed on small businesses. Groups like the U.S. Chamber of Commerce and the Small Business Roundtable lobbied hard against the plan because of its potential impact on small business. Recognizing that small business has a huge economic benefit through job growth -- particularly firms of 25 employees or fewer -- Clinton's added something the other Democratic candidates' health plans lack: a focus on small business. Her plan offers tax incentives for small businesses to cover employees.

But the plan is not a handout to business. Clinton suggests shared responsibility in which drug and insurance companies -- like Aetna(AET Quote), Cigna(CI Quote), Humana(HUM Quote), or United Health Group(UNH Quote) -- and businesses, individuals and government all shoulder the burden. It is not socialized medicine, as critics charge. Ironically, former Mass. Gov. Mitt Romney was one of those first critics, even though the plan seems very similar to the Massachusetts plan he passed.