As one of President Obama’s most celebrated platforms, healthcare reform has become a heated topic of debate on Capitol Hill. Amidst all of the media flurry and lobbyist cries, what exactly is President Obama proposing?
Obama’s proposal bridges the chasm between 100% government-sponsored healthcare and the completely privatized health industry we see today. What the Obama Administration proposes is a mixture between the two extremes.
Reduce Health Insurance Costs
In the proposed plan, Obama hopes to reduce health insurance costs for individuals and small businesses:
- For individuals who want to stay with their existing health insurance plan, the proposal hopes to reduce the annual cost of insurance by up to $2,500.
- Small businesses will be provided with a Small Business Health Tax Credit to help offset the costs of providing affordable insurance to their employees.
- A National Health Insurance Exchange will be created to provide individuals and small businesses affordable health insurance through private and public plans.
In addition, Obama’s proposal will prompt insurance companies to give fair coverage at reasonable premiums to all Americans, even if they have pre-existing conditions.
How Will the Plan be Funded?
While all of these cost-effective benefits sound fantastic, how will the plan actually be funded? A combination of taxes and regulation of the insurance industry will fund the affordability of the plan.
- Obama plans to fund the healthcare reform plan by repealing Bush’s tax cuts for those that earn more than $250,000 annually. The estate tax will be kept at its 2009 level as well.
- Prescription medications can be imported from developed nations at a cheaper price, and the usage of generic drugs shall be promoted. The plan will also regulate companies that attempt to prevent generic medications from reaching the market.
- Obama’s plan will encourage more competition in the industry, which theoretically brings about better care at lower prices.
- Hospitals will need to provide reports regarding the quality of care vs. healthcare costs.
- Large companies that do not provide equitable coverage for their employees will be mandated to pay a percentage of payroll towards their employees’ healthcare costs.
For far too long, health insurance and drug companies have been in the driver’s seat, effectively driving up the costs of prescriptions, routine visits, and hospital care. With President Obama taking the reins, improved and affordable healthcare may be the next stop for America.
