Sunday, 5. October 2008, 06:22:55
There's alot of talk of healthcare this election, and who has a better plan. But there's one thing I think everyone agrees on. That our current system is broken.
We have far to many people in this country without health insurance, or access to affordable health care. One problem is the way the insurance company is allowed to spread the risk in the form of how they classify a group. A group, for example a company with 5 employees has the risk spread across those 5 employees and their families. If someone is diagnosed with diabetes in that group, the rates for everyone in that group will skyrocket. In a group of 100, the rate increase would not be nearly as great.
I think the health insurance system needs reform. They should be allowed to set rates based on regions, because things cost more in New York than Missouri, for instance. They should then set rates based on age and gender. For instance, you have a baseline rate for a 40 year old male in Missouri. All policies for 40 year old males start with that baseline. If they are in a small group, maybe they get a 1% discount, and a large group maybe up to 5% at most. This would be for savings in administrative costs. It wouldn't matter if a person in the group had an illness, the risk is spread across everyone in the region. Obviously you would have different rates based on copays and deductibles and such. And you would have competition between insurance companies.
This would be a step in making insurance affordable to all, at least equally. It would help small businesses be able to afford offering insurance, regardless of their size, or whether they had an employee with a high cost health problem.
Did you know that about half of all personal bankruptcy cases are due, at least in part, to medical costs. And, among those whose illness led to bankruptcy, more than three in four had insurance at the onset of the illness. This is because catastrophic illnesses are so costly, and can last so many years. If someone gets cancer, they may have several years or more of extremely costly treatment. They will likely max out their out of pocket deductibles and copays, which can be $10,000 or $20,000 or even more per year. If it's an adult, they likely could lose a great deal of their income, from being off work. Some may have short or long term disability, but many do not. We need a stop gap for those situations.
We also need reform in the cost of health care, and what hospitals and doctors are allowed to charge. I don't mean regulating prices completely. But there is something wrong when the charge is $137, and the insurance company says the "usual and customary charge" is $62, whether the patient pays that with their deductible or the insurance company pays it. Because the person without insurance, they have to pay the $137. The same thing happens with perscription drugs. It's not just that the insurance company is pay part of it because you have 10/30/50 plan. It's also a hugely discounted price.
Why are medical providers and pharmacies allowed to gouge the uninsured? They should be allowed to negotiate a savings of maybe 10%. But that's about all that should be allowed.
Now I'd like to tell you the
facts about McCain & Obama's plans, because there is a lot of false information out there.
Barrack Obama's plan does NOT call for universal healthcare. It only calls for mandatory coverage for children, either through your private insurance or government programs. Many states have similar optional plans now.
Obama's plan calls for insurance reform & mandatory guaranteed elegibility. It supports leaving in place current employer paid benefits, and encourages more employers to offer benefits. And it will help prevent insurance companies from "cherry picking" the young and healthy.
John McCains plan to offer a tax credit, payable directly to insurance companies will pay up to $2500 for individuals, and $5000 for families. But he will also tax the health benefits and insurance that your employer pays for you.
McCain wants government to promote greater access through walk-in clinics in retail outlets and to promote the availability of smoking cessation programs. John McCain would work with Governors to find the solutions necessary to ensure those wth pre-existing conditions are able to easily access care.
Now back to my opinions.
John McCain wants to give or keep tax cuts for the rich, but he will be increasing taxes to the lower and middle class who most benefit from employer paid health care plans. Yet John McCain says he opposes ALL new taxes. And by taxing your healthcare benefits, there is less incentive for employer group plans, possibly driving more people to individual plans, that generally cost more.
Let me explain what taxing your benefits mean. Let's say that your health insurance actually costs $750 a month for your family. That's a pretty low cost plan for a family, so it's likely much higher, especially if you have dental or vision, or a low deductible and copay. So that $9000 spent per year is deductible for both you and your employer. You and you emp. are each going to pay about $690 more on that for FICA (social security & medicare tax). You will also pay income tax on the $9000. You employer may have to pay additional state and federal unemplyment tax, and will have to pay more workers compensation insurance premiums. Your employers increased costs can affect what they have for raises and bonuses.
McCain wants to push a retail health care system, which means rarely the same doctor, and he wants to work with states. That sounds more like pushing the problem to the states, to me, and no standard mandate for minimum coverage requirements. Insurance companies will want to be in states with less stringent requirements on mandatory coverage, pre-existing and mental health benefits. I don't think McCain's plan will do much to help alleviate the health care crisis in America, and will probably make it worse for some, or at least more expensive.
Barrack Obama's plan isn't perfect by any means. It doesn't mandate my ideas outlined above. But it does more towards making health care accessable and insurance affordable to more people than John McCain's plan.
But don't just take my word for it. And definitely don't just take the word of the news channels, the networks or the newspapers. Do some research. Check out the links below, and see what you think.
Barrack Obama's planJohn McCain's Health Care PlanFamilies USA McCain-Obama Comparison ReportEconomic Policy Institute Comparison