Daily News Updates - Health Insurance News

Focusing On the Big Picture, Pt.1 – Mr. McCain:  What we say, what we do.

Previous…

A basic tenet of Mr. McCain’s health insurance proposal is to replace the employee tax deduction for health insurance with a tax credit. The good or bad here weighs against which offers the most. Other things being equal (which they are not), McCain’s $2,500/$5,000 tax credit would probably be better up front. The reason is because most people wouldn’t be paying that much in tax for current health insurance. So they will save.

As stated, however, other things are not equal here. Three major changes happen that place heavy implications on the bottom line:

1) There is very strong agreement that employers will stop offering health insurance benefits.

2) If rising health insurance premiums costs stay on course (currently triple the inflation rate), these new taxes will eventually cost more than the credits offer.

3) If employer health insurance goes away, anyone not young and healthy will pay through the nose for an individual plan.

Considering point #1: Losing employer-based health insurance. This is considered by most to be the most radical change to our health insurance system ever.

Because of our terrible economy for the past 8 years, employers have already been dropping health insurance at an unprecedented rate.

With 170 million Americans (according to last US Census) relying on employer-based health insurance, millions of families could be displaced out of the only type of health insurance they have ever known, almost overnight. They will be faced with daunting choices, trying to balance the cost of the new risk-based policies against what they perceive will be adequate coverage for their families.

Continued…
October News...