November 29, 2007

Obama's health care plan relies on a combination of employer-sponsored coverage and the creation of a public health plan for citizens that do not qualify for Medicare or coverage at work.  Under the plan: 

  • Employers would either be responsible for offering health insurance or pay a percentage of their payroll to a national fund. 
  • Americans may enroll with any private insurance plan or pay a sliding scale based on their income for national health insurance coverage.
  • Insurance companies would have to provide comprehensive benefits to every applicant and not charge higher premiums based on a previous history of medical issues.
  • Expansion of Medicaid and State Children's Health Insurance Program (SCHIP) would ensure safety net coverage for those in need.

Although health insurance would be mandated for the estimated nine million uninsured children under the age of 18, it would not be for adults. 

How to Achieve Results

"We have reached a point in this country where the rising cost of health care has put too many families and businesses on a collision course with financial ruin.  Democrats and Republicans, small-business owners and CEOs have all come to agree it is not sustainable or acceptable any longer."



Under Obama's plan, the typical American family is expected to save up to $2,500 annually.  Savings would result from expansion of health coverage, better information technology investments, improved preventive care and chronic disease management, as well as increased competition among insurance and drug companies. 

The estimated cost for Obama's health plan is between $50 billion and $65 billion.  These costs would be paid by allowing the existing tax cuts for the wealthiest one percent to expire in 2010 and increasing taxes on inheritances valued at $7 million or more. 

A bottom-line objective of the Obama plan is to ensure money spent on health care is spent efficiently and goes directly to helping patients.  He argues, "Today, we pay almost twice as much for health care per person than other industrialized nations, and too much of it has nothing to do with patient care."     

Observations

Senator Obama's health care plan represents a solid commitment to reforming America's health care system.  By making use of the current system, which would minimize the chaos that would occur should the government take over all health care functions, Obama takes a pragmatic step towards universal coverage and meaningful health care reform.