"A Health Care Plan for Colleges" By: Peter Orszag

On September 18, 2010 Orszag posted an article on The New York Times newspaper under opinion section. Peter Orszag is the director of the White House of Management and Budget from 2009-10. In his article he is trying to make the argument that in the recent decade state government has given more money to Medicaid, the health care plan for poor, by cutting down the higher education fund. However, in past years government supported higher education by 50 percent greater than Medicaid. But now the relationship between higher education and Medicaid has been flipped. Over the past three decades health care and Medicaid costs have been increasing. Peter Orszag’s research shows that when economy collapses states takes away education funds to pay for Medicaid. According to the Center on Budget and Policy Priorities, since 2008 approximately 43 states have cut down financing for public colleges and universities or raised tuition fees. Tuition fees have been increasing since 1985, but are still not enough to offset the state government’s cuts. The result of the increase to Medicaid is that public universities are not competitive with private universities.
In a 1987 survey, there were eight public schools among the top 25 schools in the US. This year there were only 3 schools on top but none of them were in the top 20. In 1987, University of California at Berkeley was number five, but this year, 2010, Berkeley was ranked 22 out of 25. According to Peter Orszag, we can reverse this trend by providing more federal support for Medicaid when recession comes, because that is when the state takes away education funds. It is better to handle the rising cost of health care now, because increasing costs for health care are holding down wages. By slowing the growth of health costs we can help our next generation get a higher education at a good public college or university. In my opinion Peter Orszag argument is accurate and precise. As a student I can completely understand how not having enough funds for education can keep me back from getting good education at a public university. If America wants this young generation or the upcoming generation to be educated then our state government needs to provide enough funds to Medicaid and education. So when recession hits there is no need to cut one fund for another. By doing this our young generation can be educated, and successful in their lives. If Americans wants to secure their future they need to educate their young teens today.