Speaking Up On McCain’s Plan, Pt.1 – A shift over to
individual-risk plans.
Previous…
Starting with Mr. McCain’s plan, we can take note that the
experts all agree this plan is, not only the most radical of
the two, but also that it’s so radical it has never been tested
anywhere before. The tax exemption that has always been a
mainstay for employer-based health insurance would be replaced
with, up to, a $2,500 tax credit to individuals and a $5,000
tax credit to families. Those people may apply some of this tax
credit toward health insurance, bearing in mind that, they will
now have to pay the whole expense (add 75% to 81% more that the
employer had formerly paid for if switching to private health
insurance) as well as tax on that whole amount.
By eliminating the tax exemption for employer-based health
insurance that most Americans know so well, employer-based
health insurance is expected to mostly go away. In place of
that, most Americans will be moved over to private policies
where they will be singly risk-evaluated. Their premium costs
will be adjusted down if they are young and healthy or higher
if they are not young and healthy (underwritten).
One feature the McCain camp touts is consumers’ control.
Those who can afford it, will have the luxury of taking their
health insurance with them wherever they go. If they decide to
change jobs, no problem. They can take their existing coverage
with them. They won’t be locked into a lousy job for fear of
losing their benefits.
Further, irresponsible persons will be brought more in check
over careless extravagance (McCain’s ‘Cadillac’ policies).
Since things will be more expensive to the consumer, people
will have to struggle and pay more if they want more, unlike
with employer-based health insurance where the employer picks
up much of the tab.
Continued…
October News...
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