Crains New York - July 22, 2013 - (Page 10)

OPINION CRAIN’S The Obamacare wars W hen the Cuomo administration gave word last week that individual health-insurance premiums offered through the state exchange to launch in October would be at least 50% cheaper than what some New Yorkers pay now, it was like tossing food pellets into a pond of starving fish. Groups supporting the Affordable Care Act celebrated the news in TV ads, seeking to beat back Republican efforts to repeal Obamacare. Critics of the law fought back, arguing that the numbers were deceiving or downright false. The result was a lot of noise that left businesspeople no less bewildered than they’ve been since the law passed in 2010. After sifting through the front-page stories and the partisan, ideological warfare, they still don’t know what their health insurance premiums will be in 2014 or if the New York exchanges will be game-changers for entrepreneurs. Are the ballyhooed lower-cost policies even remotely equivalent to the plans they have now, or filled with surprise exclusions and high deductibles? There is a great deal of suspicion among insurance brokers and their business clients that the savings being trumpeted stem from apples-tooranges comparisons and mean little for group plans. Make no mistake: There are encouraging signs. At the very least, more insurers—perhaps several times as many as today—will offer plans next year, and competition is good CRAIN’S ONLINE POLL NEW YORK BUSINESS editor in chief Rance Crain publisher, vp Jill R. Kaplan for consumers. In some cases across the nation, insurers have resubmitted plans with lower premiums after seeing what their rivals were charging. Some business customers may find real savings or be able to direct their employees to the exchange to purchase individual coverage that is reasonably priced. The market for small and midsize firms in New York has been inhospitable for years, and even worse for individuals, so the prospect of change is welcome. But policymakers, the business community and the public should not lose sight of the underlying reason that health insurance is so expensive, which is that health care is so expensive. As helpful as a robust, competitive insurance market in New York would be, there will be no dramatic reversal of costs without fundamental changes in the way medical care is provided and purchased. That is a much longer journey, and one on which Obamacare takes baby steps. While interest groups and politicians focus on defending or defeating the new law, they ignore the most pernicious problems of American health care, such as costincreasing incentives and ineffective practices. Progress on those fronts would be worth shouting about. As interest groups fight, bigger problems are ignored COMMENTS Grading eatery grades newscom FINES FOR PEANUTS WAS JUSTICE SERVED IN THE ACQUITTAL OF GEORGE ZIMMERMAN? Yes. Between the “stand your ground” law and the lack of courtroom evidence, the jury’s verdict was understandable. No. An overzealous gunman confronted and killed an unarmed, innocent teenager. That has to be a crime. Date of poll: July 15 583 votes 39% No 61% Yes FOR THIS WEEK’S QUESTIONS: Go to www.crainsnewyork.com/poll to have your say. 10 | Crain’s New York Business | July 22, 2013 Don’t lighten up on the restaurant fines (CrainsNewYork.com), since you do want to punish serious health violations. But do lighten up on the rules to be enforced. Many of the rules seem too petty. I give you two examples of excessively strict rules: 1. A sushi restaurant can’t get more than a B if the chef rolls sushi with bare hands; of course, Japanese have done it that way for centuries without problems. 2. If a bar puts out a bowl of free pretzels or chips for customers on the bar, it loses points. It’s true people might have dirty hands, and sharing pretzels is not perfectly sanitary. But a bowl of pretzels is not a serious health hazard. Just protect us from rats, cockroaches, salmonella and major problems like that. —george bogdan Elmhurst, Queens The letter grades are a part of the shakedown. If you get a letter other than A, you have to file an appeal, pay a substantial fee for the appeal and then magically you get an A rating. This, of course, results in additional revenue for the city. This extortion is to be found all over the city. Delivery bikes pay the city for a bike-safety course. Hot-dog vendors pay for a hot-dog safety course (I could not find a case where someone was killed, either by accident or intentionally, with a hot dog). The list of extortion events—I mean fines—goes on. —dave CANDIDATES AND TOURISM Your article about the need for mayoral candidates to maintain growth for tourism (“Tourism chief frets over future,” July 8) hits the nail on the head. However, the responsibility to support and promote this vital industry should not stop at the door of Gracie Mansion. All candidates for office this year must recognize the significance of the tourism industry and detail their plans of support. The Bloomberg administration has tirelessly advocated and supported NYC & Company and the growth of tourism. Had it not been for the jobs and economic impact provided by the more than 50 million visitors to our city each year, patronizing our restaurants, stores and hotels, the economic downturn would have been much worse. Every dollar spent by a tourist is another dollar to support our schools, our first responders and the health of our city at large. Candidates must understand the intricacies of this sector, and it is very worrisome that tourism is hardly ever mentioned. —ken biberaj Mr. Biberaj is vice president of the Russian Tea Room and a candidate for City Council on the Upper West Side CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to letters@crainsnewyork.com. Send columns of 475 words or fewer to opinion@crainsnewyork.com. Please include the writer’s name, company, address and telephone number. EDITORIAL editor Glenn Coleman managing editor Jeremy Smerd deputy managing editors Valerie Block, Erik Ipsen assistant managing editor Erik Engquist senior producer, news Elisabeth Butler Cordova news producer Amanda Fung contributing editor Elaine Pofeldt columnists Greg David, Steve Hindy, Alair Townsend crain’s health pulse editor Barbara Benson senior reporters Theresa Agovino, Aaron Elstein, Lisa Fickenscher, Matthew Flamm reporters Chris Bragg, Matt Chaban, Daniel Geiger, Andrew J. 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Table of Contents for the Digital Edition of Crains New York - July 22, 2013

IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
BUSINESS PEOPLE
REAL ESTATE DEALS
SMALL BUSINESS
OPINION
GREG DAVID
REPORT: INFRASTRUCTURE
CLASSIFIEDS
NEW YORK, NEW YORK
SOURCE BREAKFAST
OUT AND ABOUT
SNAPS

Crains New York - July 22, 2013