Health care reform once again tops this election season’s critical issues. Voters are demanding viable solutions as wages stagnate and health care costs continue to rise faster than inflation. Accordingly, Republicans and Democrats have prominently positioned health care reform in their respective platforms as working families feel the financial squeeze nationwide.
The New York Times recently reported that health economists concede at least one third of the country’s health care spending is unnecessary. Both Republican Sen. John McCain (Ariz.) and his Democratic opponent Sen. Barack Obama (Ill.) agree significant sums could be saved by reducing unneeded procedures and improving electronic recordkeeping, prevention and chronic disease management. However, any agreement between these two presumptive presidential candidates on health care reform ends there.
McCain’s health care reform plan contains the following:
- Restoring control to patients with an affordable health care system for treatment and preventive care. Health care coverage would be available to all, not limited by employment or economic status.
- Increasing competition to improve the quality of health insurance with greater variety to match people’s needs.
- Maintaining the option of employer-based coverage, but also providing each family with a direct refundable tax credit—effectively cash—of $2,500 for individuals and $5,000 for families to offset the cost of health insurance.
- Expanding families’ use of health savings accounts (HSAs).
Obama’s outlook on health care includes:
- A new, nationalized health plan system, similar to what is currently available in many European nations.
- Employer requirements to fund a meaningful contribution of their employees’ health care coverage with a percentage of payroll paid toward the cost of the national plan.
- A national health insurance exchange to help individuals purchase insurance in the private sector. (This contrasts with the public plan, which is for employer groups.)
- Expanded eligibility for Medicaid and State Children’s Health Insurance Programs.
Both candidates state that reforming the nation’s health care system is imperative for the nearly 47 million people living in the United States with no health insurance coverage. However, their approaches differ. Obama’s plan would transition the current system into a government-centered program; McCain proposes free market reforms that would increase competition while considering the costs to America’s small businesses.
The U.S. health care system requires dramatic reform in all areas. Outdated and inefficient care delivery models sap resources that could be used to provide care for the millions of Americans that have been left behind by insurance companies.
Care providers need incentives to become more efficient, and to only perform costly tests and procedures when necessary. Consumers must be given choices beyond what their HMO—or government—feels is best for their care.
Additionally, adverse impact on the business community must be considered, particularly burdens on small business. Smaller companies must be allowed to join together to purchase health care for their employees in bulk, allowing them to enjoy the same type of cost savings as large corporations, government employees and elected officials.
Any serious proposal will need to weigh market-based solutions to the nation’s health care problems against potentially crushing tax and fee increases. While the overall cost and feasibility of each candidate’s proposal still remains to be seen, the business community must work hard this election season to ensure the candidates’ health care proposals provide sensible solutions for America’s working families.