Email to a Friend
Stumble It!
BY AMY DOMINELLO
Media General News Service
WASHINGTON – John McCain and Barack Obama agree that the country’s health care system is broken, and 47 million Americans lack health insurance.
Beyond that, the presidential candidates differ greatly on how best to insure those people and reform the health care system.
Democrat Obama believes the federal government should step in to make sure all children are covered and create a public health insurance program. He also aims to make it easier for individuals to buy their own health care plans.
Republican McCain takes a more hands-off approach, encouraging individuals to purchase their own insurance through tax credits, which, he says, will create more competition and cost savings within the health care system.
Their plans
Obama proposes universal health coverage by giving individuals who aren’t covered several options and mandating that children be covered.
His plan would establish a new public health insurance program for the uninsured. The policies would be similar to those provided to federal employees.
Those already insured by employers would not have to give it up. Employers would have to continue providing plans or contribute toward the national plan.
But individuals and families would have to option of choosing their own health insurance through a national health plan that would make doing that more affordable.
Obama promises that every American will have access to health care.
“I will sign a universal health care plan into law by the end of my first term in office,” he said in a speech in May.
McCain is critical of universal health care, saying it will in increase government programs and regulation without fixing the current system.
“We’ll have all the problems, and more, of private health care,” he said in April.
McCain’s plan, which has some features of a plan proposed by President Bush last year, moves away from employer-based coverage and promotes more coverage in the private market, purchased by individuals. He believes greater competition will improve the quality of health care and lower costs.
Under his plan, employers could still offer coverage, but individuals would be more easily able to choose their own health insurance companies through tax credits.
Individuals would receive $2,500 a year and families would get $5,000 to offset the cost of health insurance.
With families more aware of what they are spending, McCain said, they will make more cost-effective choices, and competition among insurance companies will increase as families shop around.
“When families are informed about medical choices, they are more capable of making their own decisions, less likely to choose the most expensive and often unnecessary options and are more satisfied with their choices,” he said in May.
McCain also seeks to increase the use of Health Savings Accounts, tax-preferred accounts that are currently used to pay health care costs.
While his plan could give many who are now uninsured access to health care, critics, most notably by Elizabeth Edwards, say McCain’s plan fails those with pre-existing medical conditions. The wife of former Sen. John Edwards pointed out that McCain himself wouldn’t be covered by his own proposal because he has had melanoma.
But McCain countered that those with pre-existing conditions would be enrolled in a “gap access plan.” Few details about that plan have been released, although McCain has said it would be modeled after similar state programs.
“I will work tirelessly to address the problem,” he said. “But I won’t create another entitlement program that Washington will let get out of control.”
Costs
Obama’s plan would cost between $50 and $65 billion a year. He would pay for it by allowing the Bush tax cuts to expire for people making more than $250,000 a year and by removing waste and inefficiencies within the health care system.
McCain campaign aides have said his plan would cost significantly less – about $10 billion a year. The money could come from savings in federal programs that currently pay for care for the uninsured, particularly in hospitals, according to the McCain campaign.
Your wallet
Obama has said the average family would save $2,500 a year under his plan. But analysts say it’s not clear where those savings would come from.
Merrill Matthews, executive director of the Council for Affordable Health Insurance, a research and advocacy group for insurers, said out-pocket expenses will likely increase under Obama’s plan for the uninsured.
“When people get insured, they spend more money than beforehand,” he said. “They start going to the doctor, and they start buying prescription drugs.”
McCain’s plan, Matthews said, might save people money because they will realize how much they are spending, instead of just using their company’s health insurance.
But Sara Collins, assistant vice president of the private health foundation The Commonwealth Fund, said if McCain’s tax credits are not adjusted for inflation, they may not even cover the average premium.
Areas of agreement
Despite their differences, both candidates agree that the country needs to take steps to control spiraling health care costs, including:
- Updating health information technology across the country
- Placing greater emphasis on prevention, not just treating diseases
- Allowing importation of prescription drugs.
Contact Amy Dominello at 202-662-7671 or adominello@mediageneral.com
Media General News Service
WASHINGTON – John McCain and Barack Obama agree that the country’s health care system is broken, and 47 million Americans lack health insurance.
Beyond that, the presidential candidates differ greatly on how best to insure those people and reform the health care system.
Democrat Obama believes the federal government should step in to make sure all children are covered and create a public health insurance program. He also aims to make it easier for individuals to buy their own health care plans.
Republican McCain takes a more hands-off approach, encouraging individuals to purchase their own insurance through tax credits, which, he says, will create more competition and cost savings within the health care system.
Their plans
Obama proposes universal health coverage by giving individuals who aren’t covered several options and mandating that children be covered.
His plan would establish a new public health insurance program for the uninsured. The policies would be similar to those provided to federal employees.
Those already insured by employers would not have to give it up. Employers would have to continue providing plans or contribute toward the national plan.
But individuals and families would have to option of choosing their own health insurance through a national health plan that would make doing that more affordable.
Obama promises that every American will have access to health care.
“I will sign a universal health care plan into law by the end of my first term in office,” he said in a speech in May.
McCain is critical of universal health care, saying it will in increase government programs and regulation without fixing the current system.
“We’ll have all the problems, and more, of private health care,” he said in April.
McCain’s plan, which has some features of a plan proposed by President Bush last year, moves away from employer-based coverage and promotes more coverage in the private market, purchased by individuals. He believes greater competition will improve the quality of health care and lower costs.
Under his plan, employers could still offer coverage, but individuals would be more easily able to choose their own health insurance companies through tax credits.
Individuals would receive $2,500 a year and families would get $5,000 to offset the cost of health insurance.
With families more aware of what they are spending, McCain said, they will make more cost-effective choices, and competition among insurance companies will increase as families shop around.
“When families are informed about medical choices, they are more capable of making their own decisions, less likely to choose the most expensive and often unnecessary options and are more satisfied with their choices,” he said in May.
McCain also seeks to increase the use of Health Savings Accounts, tax-preferred accounts that are currently used to pay health care costs.
While his plan could give many who are now uninsured access to health care, critics, most notably by Elizabeth Edwards, say McCain’s plan fails those with pre-existing medical conditions. The wife of former Sen. John Edwards pointed out that McCain himself wouldn’t be covered by his own proposal because he has had melanoma.
But McCain countered that those with pre-existing conditions would be enrolled in a “gap access plan.” Few details about that plan have been released, although McCain has said it would be modeled after similar state programs.
“I will work tirelessly to address the problem,” he said. “But I won’t create another entitlement program that Washington will let get out of control.”
Costs
Obama’s plan would cost between $50 and $65 billion a year. He would pay for it by allowing the Bush tax cuts to expire for people making more than $250,000 a year and by removing waste and inefficiencies within the health care system.
McCain campaign aides have said his plan would cost significantly less – about $10 billion a year. The money could come from savings in federal programs that currently pay for care for the uninsured, particularly in hospitals, according to the McCain campaign.
Your wallet
Obama has said the average family would save $2,500 a year under his plan. But analysts say it’s not clear where those savings would come from.
Merrill Matthews, executive director of the Council for Affordable Health Insurance, a research and advocacy group for insurers, said out-pocket expenses will likely increase under Obama’s plan for the uninsured.
“When people get insured, they spend more money than beforehand,” he said. “They start going to the doctor, and they start buying prescription drugs.”
McCain’s plan, Matthews said, might save people money because they will realize how much they are spending, instead of just using their company’s health insurance.
But Sara Collins, assistant vice president of the private health foundation The Commonwealth Fund, said if McCain’s tax credits are not adjusted for inflation, they may not even cover the average premium.
Areas of agreement
Despite their differences, both candidates agree that the country needs to take steps to control spiraling health care costs, including:
- Updating health information technology across the country
- Placing greater emphasis on prevention, not just treating diseases
- Allowing importation of prescription drugs.
Contact Amy Dominello at 202-662-7671 or adominello@mediageneral.com