Daily News Updates - Health Insurance News

McCain vs Obama: Common Ground, Pt.6 – Continued coverage when changing jobs.

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Another area that is common between the two candidates is that of retaining health insurance, even while switching jobs. Mr. McCain’s method implements this by moving people away from employee-based health insurance and into private health insurance plans. Mr. Obama’s approach however is different from Mr. McCain’s.

Mr. Obama’s approach is to create a new health insurance entity, administrated by the government, but still tied to the employer. This creation would be in support of the employers continuing to offer their employer-based health insurance. In this effort, however, he is requiring participation by all employers by assisting them with aid, especially to small businesses by way of innovative training and the creation of inter-company risk pools in order to provide a larger risk-sharing environment so they can appreciate the better benefits offered in larger-scope plans.

Those businesses who simply opt out and will not participate will still be required to support this effort by contributing to a fund that will supplement their employees in getting health insurance elsewhere.

As employees switch jobs, the Obama plan will provide a mechanism for them to retain uninterrupted health insurance coverage. The national plan proposed by Mr. Obama will be even more portable by being independent from an employer-based health insurance plan.

Those who elect, will be able to buy in to this national health insurance plan, just as they can buy into private plans today. The difference is that this plan will be part of a large pool and, like employer-based plans, will not have the effect of offering low-ball prices only to the young and healthy while jacking the premiums for those who are not, as the private plans do now.

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