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Look for an American-style solution on health care coverage

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As most investors are aware, President Obama and the U.S. Congress are nearing agreement on a health care reform package that will provide universal health care coverage in the world's strongest economy and richest nation.

The legislation's features will most likely include: 1) a public health care insurance plan to compete with private insurers -- in order to increase sector competition and to encourage private insurance companies to cut costs and improve service to the American public; 2) a series of cost cuts by insurers, hospitals, physicians, other service providers, and by the federal government to wring waste out the system and lower the per person cost of health care in the U.S. -- the nation with the highest per capita health care costs in the developed world; and 3) a tax increase, most likely on upper income groups or corporations, to help fund the new health care plan.

Moreover, while some may fear universal health care as 'creeping socialism,' nothing could be further from the truth. The United States' health care system will remain private sector-based, and know that the American culture that frames those solutions is ingrained in the American psyche, is strong, and it's very hard to alter.

To show you how ingrained the above is in the American psyche, Americans can't imagine life functioning in an economy with a government-led, bureaucratic, bungling system, one rife with chronic inefficiency, zany political swings from left to right and back, and forth etc. Americans could not imagine living in a country like that! How could a people function in such an environment? But Italy has been this way for decades, and yet in spite of all of the above, the Italian people live on!

Yours truly may be a little biased here, but can one argue that Italy's quality of life does not compare well with the U.S., at least in certain categories? (Trust me: don't start with cuisine, or history/culture, or vistas, or sea-side villages, or... well, you get the point.)

Underscoring, we are in the United States, so expect American-style solutions to health care, and to other problems.

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Financial Editor Joseph Lazzaro is based in New York.

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Last updated: November 27, 2009: 08:50 AM

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