Last week, we looked at the details of Bush’s new
health care proposal. This week, we will look at what supporters
and opponents of the plan are saying.
One thing everyone seems to agree on is that health care
reform is a relevant and important issue that needs to be
addressed. Health care costs are out of control and something
must be done to deal with the mounting problems.
After Bush presented his proposals to Capitol Hill recently,
the newly majority Democrats slammed the plan and determined
to make sure it would be buried. Democrats are in favor of
a national health care system run by government.
Still, Bush’s plan has merit.
It is trying to level the playing field between people who
receive their coverage from their employers, and those having
to buy it on their own.
18 million people currently buying coverage on their own
will see a significant tax break. However, 20% of the population
will see a tax increase because their plan premiums exceed
the deduction limit.
"You don't make health care more affordable by increasing
taxes on middle-class families that work hard and currently
have good health care coverage," said Jack Cardetti,
Missouri Democrat Party spokesman.
People suffering from pre-existing and chronic illnesses
may be penalized under the new plan, because their excessively
priced premiums may easily exceed the new limits. The new
plan “punishes people who suffer from one or more chronic
illness,” said Alan Sager, director of Boston University
School of Public Health’s health reform program
However, for those who can’t afford to buy coverage
on their own and don’t receive it from work, about
12 million people, they may now be able to purchase coverage
that was previously out of reach.
Unfortunately, many uninsured will still not be able to
afford coverage and will have to use the tax savings for
living expenses instead of purchasing insurance. In addition,
they would have to pay out of pocket and wait for a refund
at the end of the year, which directly reduces their income
during the year. Also, about 25 million uninsured fall below
the taxable income level and don’t file federal taxes,
making the tax deduction of no use to them, as there are
no taxes to reduce.
Critics of the plan point out that companies may drop coverage
if they know that their employees can get coverage on their
own.
Proponents say that’s not likely to happen, as companies
will still use their benefit packages to attract the best
talent.
An upside of the plan is that federal funding would also
be extended to states to encourage them to coordinate affordable
coverage for all, and to work with their residents to further
reduce the number of uninsured. Bush has introduced an Affordable
Choices Initiative to involve states in fighting the health
care problems.
In order to receive the additional funds, states would have
to drop mandatory regulations on insurance companies, such
as requiring certain services to be covered by insurance
(ie. staying in the hospital a day after giving birth, or
treating depression).
In regards to out of hand health care costs, people will
be more likely to pay attention to where their health care
dollars are going. This could lead to more competition with
insurance plans, and ultimately to more competitive and lower
premium plans made available. ``We think that will bring
down national health spending,'' said economic advisor on
council to the President, Katherine Baicker.
Because people will still receive the full deduction, even
if the coverage costs less than the limits, opponents of
the plan worry that people may opt for higher deductible
plans with lower premiums, and be less likely to use preventative
care which may lead to more costly health problems in the
future.
In Bush’s speech to Congress, he remained optimistic
about finding common ground with the Democrats. “Like
many before us, we can work through our differences and achieve
big things for the American people,” he said to Congress
during his speech. If the Democrats succeed in overturning
the President’s proposals, there will be pressure on
them to come up with a better plan before the 2008 election.
Whichever way the issue goes, the national coverage and media
attention this topic has stirred up will keep the topic in
people’s minds and will ensure that it’s a deciding
factor in next year’s election.
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