Intel Corp (INTC)

[Windsock]

An interesting point that few Intel followers are aware of is that Intel publicly favors a national health plan. The reason is that the cost burden for companies like Intel that have good health plans for their employees would go down. Ditto for the auto companies, airlines and other big corporations.

The economically troubled auto companies have perhaps the highest health care burden and are about ready to sign on the idea of universal health care. Toyota recently declined big subsidies to build a plant in the US and chose Canada because its universal health care provided a cost advantage.

Europe on average spends 7% of GNP on universal health coverage while the US spends 15% of GNP and provides no coverage for 49 million people. Europe also has better metrics on health care quality and patient satisfaction. Setting aside the question of what a "good" universal system for the US would entail it would cost Intel and all other corporations less for their operations and improve their bottom line.

The important point is not to address the difficult debate on universal health insurance -- which I favor for both economic and social reasons -- but to note that Intel supports universal health insurance because it will lower costs and help its bottom line.