The McCain health care plan represents a philosophical advance over many other health care proposals, principally in its commitment to redistributing the current tax exemption for employer-based health insurance. However, the plan raises more concerns than it addresses.
The plan would provide a refundable tax credit that is more valuable to low-income workers than the current tax exemption for employer-based insurance…make insurance coverage less accessible and affordable for those with high health care needs; increase coverage among the currently uninsured through the nongroup market but reduce the number already covered by employers, leaving about the same number of people uninsured; have a high budget cost, at least in its early years.
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In brief, McCain’s proposal would dramatically change how many Americans obtain health insurance coverage, make coverage less accessible for those with health problems, have a high budget cost, but have little effect on the number uninsured….
The Obama health care plan would greatly increase health insurance coverage, substantially increase access to affordable and adequate coverage for those with the highest health care needs, significantly increase the affordability of care for the low-income, and reduce the growth in health spending through a broad array of strategies.
Despite the overall positive assessment, a few concerns remain. The plan would leave about 6 percent uninsured, necessitating the maintenance of the current inefficient safety net system; the employer mandate may engender significant political opposition; and the cost estimate may be low depending upon how several plan details are resolved….
In short, Obama’s proposal contains the basic components necessary for effectively addressing the most important shortcomings of the current health care system, that is, limited coverage, inadequate risk pooling, and high-cost growth.
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