Daily News Updates - Health Insurance News

Speaking Up On Health Insurance, Pt.3 – The McCain plan, simplified.

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On a very different road, McCain plans to move our workers out of employer-based health insurance and over to individual private health insurance. There, each individual will be responsible to get their own health insurance policy and pay it in full. The employer no longer will pay up 75% to 81% of the expense. There would be a tax credit to pay for the taxes on the policy. For the first few years, there will be a little left over, which can be spent on anything. Note, for those on fixed or low incomes, the credit may be greatly reduced. If your 1040 tax due is only $200, you won’t get a $2,500 tax credit. You’ll get a $200 tax credit.

To help with voter choices, here are some of the pros: and cons: of Mr. McCain’s health insurance proposal:

Pros:

1) Those with higher paychecks will have better choices for health insurance.
2) At the start, about 5 million of the 45.7 million Americans with no health insurance, will be able to get it.
3) Health insurance will be more portable (can change jobs without losing it).
4) Americans will be more mindful about how much medical attention they get, since it will cost them more.
5) Health insurance will be cheaper for the lucky ones who are young and healthy (they already have this).
6) The health insurance industry will enjoy sweeping profits.
7) Large business employers will be not be compelled to contribute to the well-being of their employees. Employers will be free to opt out of offering health insurance and keep the money.
8) People being paid over $250,000 a year will not see a tax increase (in fact, their taxes will be lowered).

Cons:

1) The plan is the most radical change ever and has never been tested.
2) Those not young and healthy will see premium rate hikes. Many will have trouble even getting any coverage at all.
3) After about 5 years, only about 1 million of the 45.7 million Americans with no health insurance, will still have it.  The 44.7 million remaining without health insurance still won’t have it.
5) The 25 million Americans who have inadequate health insurance will still have inadequate coverage. With consumer protection mandates gone, this number is almost certain to increase.
6) All the children will not be insured. If the current Republican agenda prevails, SCHIP could be in trouble.
7) Over time, the benefits of the tax credits will diminish until they become a loss to the tax payer.
8) The 20,000 or so number of Americans dying each year for lack of health insurance will continue.
9) 15 to 20 million Americans having chronic or pre-existing conditions who currently are denied health insurance still will not have health insurance.

Continued…
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