Healthcare
McCain on Healthcare - McCains primary premise with healthcare reform is for the government to encourage open market competition so that insurance providers and drug companies have to compete with each other (i.e., insurance provider vs. insurance provider, drug company vs. drug company) to provide the highest quality and most affordable insurance and drugs. He advocates a tax credit in the form of $2,500 for individuals and $5,000 for families to offset the cost of insurance and for families to choose their insurance provider. Unused tax credits go towards what would be an expanded Health Savings Account. Finally, McCain believes that Americans should have healthcare portability when they change jobs, retire early, or take time off to raise kids; all of which seem a high risk for consumer fraud.
Obama on Healthcare - Obama believes in government health insurance subsidies for companies so that employees pay less for health insurance and in some cases to force companies to subsidize more of the cost. In addition, he wants to create a Small Business Health Tax Credit so small businesses can provide affordable health insurance to their employees. His plan is partially funded by repealing Bush tax cuts for people earning greater than $250,000/year. Finally, he suggests that there are two companies that dominate the insurance industry that are using antitrust pricing strategies.
Similarities on Healthcare - Both support affordable healthcare for every American, although, easier said than done. In addition, both state that their plans would not require anyone with existing coverage to change their provider or plan. Further, both aim to increase transperancy concerning medical outcomes, quality of care, and prices. Regarding drugs, both advocate increasing the importation of drugs from developed countries and the use of generic drugs. Finally, both strive to provide insurance to people with pre-existing conditions and no existing insurance. This can only cause the cost of insurance to rise because insurance companies manage risk using probabilities and this means that there is a 100% chance that X number of people will call them up saying they have a serious medical problem and need coverage. Who pays the bill for pre-existing conditions: taxpayers, a non-profit organizations, and/or insurance companies? Either way, the number of pre-existing conditions is not going to change so insurance prices will remain the same or increase because cost of care is not being addressed.
Laughable Healthcare ideas - Obama wants to prevent malpractice insurance companies from overcharging doctors. This is laughable because insurance companies use complex algorithms to assess risk and determine costs and, thus, reducing their risk is the best way to reduce the cost of insurance. John McCain wants to promote improvements in technology and allow doctors to practice across state lines. First, there are plenty of companies working hard to serve the need for technology improvements (e.g., Google Health and Microsoft Health). Second, how many doctors would benefit from practicing across state lines?
Report card - The candidates tie on health care because there is so much similarity in their end goals. Particularly, I am not sure why some of the changes these candidates propose have not already been put into law since there is so much similarity between two plans. The big difference between the two proposals is how they plan to fund them. Obama plans to repeal some of the Bush tax cuts while McCain wants to lower taxes for every American (via tax credits). McCain is assuming that increased competition will lower the cost of healthcare. If he is wrong then the U.S. budget deficit will continue to grow. In addition, I am not sure how McCain plans to fund all of the changes on which he and Obama agree. So, if you are in favor of governmental fiscal responsibility then you should give the edge towards Obama. In sum, for such a complicated issue, it is tough to predict the outcomes of either candidate's plan. For example, families with Medicaid are denied service at some health care providers because Medicaid does not reimburse at the same rates as other insurance providers. I am not sure how either candidate's plan solves that problem.
How do you grade the candidates on healthcare?
2 comments:
you have got to be kidding that there is no difference. McSame wants to give you a tax break while you give up your employer sponsored healthcare. Let's do the math, shall we? My employer pays close to $12,000 for health insurance. If I leave that plan, do you think the insurance companies are going to LOWER my premiums? Ummmm, no they won't. So I will have to pay the 12K, plus what I pay each month, plus my deductible for a paltry 5K tax credit? This is the difference: Obama wants the companies to cover the cost. McSame wants YOU to cover the cost. BIG vs Little. I don't care that companies need to pay more.
The real issue is that we don't know how to valuate what it costs for healthcare. If my child is sick and there is some technology out there that will make her better, no matter what the cost, then I will do it. My concern is that McSame will not look at options and wants to let the wolf watch the hen house by allowing the free market to dictate what we pay for health care. If there was a big player, like the government involved, you can bet that the costs would be restricted.
Rob, fantastic post. It's not often that we get the chance to read an article these days that isn't full of condescension toward one party/candidate or the other.
Marci, I think your employer might benefit from looking into a more cost-effective insurance provider. You obviously have a great deal of disdain toward corporations. Does this go for the company you work for as well? If you believe that forcing companies to pay more will solve the problem, I think you are mistaken that those costs won't be passed on to the employees and consumers. Companies may change their growth plans (meaning they will create fewer jobs), give fewer raises to employees, and cut non-healthcare-related benefits.
Post a Comment