McCain Offers Market-Based Health Plan

Washington Post: GOP Proposals Set Up A Stark Choice For Voters This Fall

(Washingtonpost.com)  This story was written by Michael D. Shear.

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Sen. John McCain on Tuesday rejected calls by his Democratic opponents for universal health coverage, instead offering a market-based solution with an approach similar to a proposal put forth by President Bush last year.

McCain's belief in the power of the free market to meet the nation's health-care needs sets up a stark choice for voters this fall in terms of the care they could receive, the role the government would play and the importance they place on the issue.

Democratic Sens. Barack Obama (Ill.) and Hillary Rodham Clinton (N.Y.) have vowed government action to fulfill what they cast as a moral right for Americans to have health insurance. They favor mandates for coverage; McCain (R-Ariz.) proposes tax incentives. Obama and Clinton would impose new regulations on insurers; McCain's plan is designed to avoid direct regulation. The Democrats would build on the current employer-based system; McCain would shift to a more individual approach.

In a speech at a cancer research center here, McCain dismissed his rivals' proposals for universal health care as riddled with "inefficiency, irrationality and uncontrolled costs." He said the 47 million uninsured Americans will get coverage only when they are freed from the shackles of the current employer-dominated system.

McCain's prescription would seek to lure workers away from their company health plans with a $5,000 family tax credit and a promise that, left to their own devices, they would be able to find cheaper insurance that is more tailored to their health-care needs and not tied to a particular job.

Under McCain's plan, $3.6 trillion worth of tax breaks over a decade that would have gone to businesses for coverage of their employees would be redirected to individuals, regardless of whether they are covered by a company plan.

"Insurance companies could no longer take your business for granted, offering narrow plans with escalating costs," McCain said. "It would help change the whole dynamic of the current system, putting individuals and families back in charge, and forcing companies to respond with better service at lower cost."

Health experts predict a robust debate in the general-election campaign as anxiety about the cost of health care grows against the backdrop of a worsening economy, higher gasoline prices and rising unemployment.

"Health will increasingly become reframed as part of the broader pocketbook and economic concerns," said Drew Altman, president of the Henry J. Kaiser Family Foundation, a nonpartisan health research group. "The real health reform debate hasn't really begun -- the debate between the Democrats and the Republicans about the fundamental differences in how to reform health care."

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Candidates' Health Care Proposals
WebMD Details The Health Care Proposals Of The Presidential Candidates

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Altman's group released a poll Tuesday showing that nearly 30 percent of Americans have faced a serious problem in paying for medical care or insurance in the past year. The survey also found that 25 percent of workers made job decisions based primarily on health-coverage considerations.

McCain's proposal is similar to one that Bush put forth in his 2007 State of the Union address. That plan, which would have replaced employer tax breaks for health insurance with a $15,000 tax deduction for married couples, flopped in Congress, failing to get even a committee hearing.

McCain's plan is aimed primarily at giving individuals the power to make health-care decisios by granting the same tax breaks for insurance whether workers get a policy from an employer or on their own. Aides call it a "radical" rethinking of health care that would drive costs down and give people more choice.

But it also leaves McCain open to criticism that he is not doing enough for the poor and sick, who could face steep premiums and limited choices as they search for an insurance company willing to cover them. Critics of McCain's plan said it would do little to help people already struggling with health-care costs.

Unlike his Democratic opponents, for instance, McCain would not mandate coverage for people with preexisting conditions who have not already been covered by a company health insurance plan. Critics say that would leave millions of people without coverage.

"Our next president has to get health-care costs under control. But like President Bush, John McCain won't stop rising health-care costs," asserts the Service Employees International Union, which has endorsed Obama, in a new television ad running in the swing state of Ohio. "When it comes to making health care affordable . . . we'll still be feeling the pain."

McCain sought to answer those charges Tuesday by saying he would create what he called a guaranteed access plan, or GAP, to help provide coverage of last resort for the sick and other "high-risk" people until the marketplace has matured enough to take care of them.

He gave few details of how such a program would work, who would run it or how it would be financed. He said it might be operated by a nonprofit organization with funds from the federal and state governments. And he said he would work with governors to solicit ideas from their experiences with similar state-run programs.

McCain advisers said such a program could cost as much as $7 billion a year. But McCain vowed not to "create another entitlement program that Washington will let get out of control." He added: "Nor will I saddle states with another unfunded mandate."

In a statement, Clinton said McCain's plan has "fundamental flaws" and charged that it would abandon millions of Americans to expensive, high-risk insurance arrangements. "Older Americans or those with pre-existing conditions would be allowed to get only one type of coverage in a high risk GAP pool," Clinton said. "That kind of arrangement does more to help insurers than individuals."

Obama spokesman Hari Sevugan said, "John McCain is recycling the same failed policies that didn't work when George Bush first proposed them and won't work now."

McCain also promised to fight for health savings accounts, a centerpiece of Bush's health-care efforts, and to lobby insurance companies for better coverage of preventive care. And he said he would provide incentives for doctors and hospitals to use cutting-edge technology to reduce medical costs.

In his own television commercial, which began running Tuesday across Iowa, McCain says, "I can characterize my approach on health care by choice and competition, affordability and availability."

The discussion about health care has for months centered on the debate between Obama and Clinton. But by highlighting his plan now, McCain is refusing to cede the issue to the Democrats.

Aides said he is driven by a belief that his rivals' approach would drive up costs and make health care less accessible.

"Clinton and Obama would put the government in charge of the choices you have to make," said Carly Fiorina, a top adviser. "John McCain's plan puts the choice, the power, the decision in the hands of the individual and the family."

[incog-nito]

McCain''s plan is a TOTAL SHAM. Buying individual health plans will put families EVEN MORE at risk and under the whims of the insurance companies. I know many self-employed people who have to buy individual plans. They can raise your premium or discontinue coverage AT WILL. One person had his premium raised twice in six months, for no apparent reason whatsoever. If you have one of these plans, better not get sick at all, or if you are sick, just suck it up and make sure you have your will in order.

[incog-nito]

With McCain''s plan, insurers can raise your premium anytime, deny coverage because of an existing condition, or discontinue coverage nilly-willy. At least under an employer''s group plan they can''t do that.

Of course, the current still sucks, because insurers can still try to denie coverage, because your premium and and deductibles still skyrocket every year, because it doesn''t help self-employed people, unemployed people, or people who have jobs but their employer don''t offer a plan, etc.

But McCain''s insane plan will only make things even WORSE.

[venkata4--2008]

I used to have some respect for this decorated war veteran and for his maverick style. My god what is that, individual can buy health insurance plan. This plan itself shows how out of touch this republican candidate with reality. Pardon me saying this, let him buy one with his preexisting condition and ask for a family plan. That will atleast $1000 per month with 80%/20% coverage with $4000 family deductible and all specialist out of network.

Senator Mccain do not have a faintest idea about health insurance plan. Government should drop health coverage for all Congressmen and Senators then may be they will know.

[billmar42]

John McCain%u2019s healthcare plan is patently absurd. His prescription is to let the free market determine premium rates, and for us to eat healthier diets and get more exercise. His plan would not guarantee coverage to people with pre-existing conditions %u2013 cancer, diabetes, or even hay fever. Many experts predict that under McCain''s plan to allow people to buy coverage across state lines, insurance companies would simply gravitate to the states with the fewest rules. Allowing insurance companies free reign under market conditions will not result in better or cheaper health care, it will result in exorbitant policies with exclusions, precondition limits and extensive bureaucratic systems established by the insurance industry to reduce payouts under as many circumstances as is possible. The health care system will mimic the property insurance industry where profits are at an all time high yet insurance companies refuse to pay claims, stop serving entire regions of the country and increase both their deductibles and rates to mitigate risk. Insurance companies have a fiduciary responsibility to their shareholders, not to sick people, and will do the absolute minimum to service and retain customers and maximize shareholder benefit. For this reason the theory that you will create a self-regulating industry delivering high quality at low cost is a fallacy. To expect it to happen when peoples lives or quality of life are on the line is totally unrealistic and a bit cruel.

[bobnjersey]

there is no free market in the health care business. and when there is there will be a lot more people suffering and dying.

the same distribution of uninsured (in the population) should be mandated for members of congress. and that same percentage (of congressman) should be prevented from receiving any ... even if they can pay for themselves ... until they fix the problem. we can decide by lottery which congressional members go without.

why is it that those who (are supposed to) represent don''t live by the same rules as those they allegedly were elected to represent? everyone else can be drug tested at work but congressional members ... everyone else can be dropped by their ins. co but congressional members ... everyone else can lose their pension but congressional members.

[loist52]

It is so sad that this man cannot understand this health plan put together by someone whose brains are a half-a-step above Mr. McCain. He is truly going to need a NEW HEALTH PLAN in the fall because if somebody isn''t praying, he is NOT GOING TO SEE THE ELECTION THROUGH - 71 years old, come on! Whose kidding who. Alzheimer has ALREADY begun to set in. Joe and everyone else is whispering the correct ANSWER over his shoulder. You all MUST STOP HIM before you are held accountable for him SNAPPING & LOSING HIS TEMPER. The OLDER you get the worse your TEMPER gets. LOW TOLERANCE! IMPATIENCE! NERVE WRECKING! CANNOT STAND FUSSING AND CONFUSION! My goodness, you all MUST STOP HIM. Let him take it easy these last days he has left. Why will you all allow such a wrenching situation go forth? This is very sad for America!

[omnibus66]

Wow, a $5000 tax credit to buy health insurance. That won''t even pay half of what the insurance companies are now charging, and what about people who don''t make enough to pay taxes? They will not be helped at all. What a great plan! Typical Republican drivel.

McSame, the name says it all.

[magoo2u1]

So,,,,,,,,,,,,, why does any insurance company exist?
To provide you with a service like vehicle repair or health care? NOOOOOOOOOOOOOOOOOOOOOOOO. They exist to make money and that is all. If you never have a car repaired or see a doctor YOU are the good customer and the rat finks actually file claims.

[b-easy63]

Hillary still has one big plus: most Obama supporters would still vote for her, even if she cheats to win. THIS little fact means she can do what she likes and still at least get their votes. Obama on the other hand, is shown to lose her crowd. If electability is the issue--Obama supporters hurt him every time they say they will vote for Hillary no matter what.

If the contest is 50/50 then if Obama supporters will still support Hillary but more of hers won''''t support Obama--and either can get the Independents--who would lose? Obama supporters don''''t see the game.

In the final analysis, the superdelegates will go with the best risk, if HRC can pull the Independents, it COULD be her. Obama''''s supporters and their loyalty to the Dem party are being used against him and them. Funny how so many can''''t see that.

[kansas1946]

McCain Offers Market-Based Health Plan

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What a BRILLIANT idea. Isn''t that what we frickin'' have already that isn''t working???????
I guess John is exercising a little "fuzzy math." What a goof-ball.

[b-easy63]

So now HRC does not have to testify in the campaign fraud case against Bill that also implicates her--until AFTER the November elections? So says the judge who appears to not want the story about Hillary and this fraud to taint her bid for the Presidency. But why not? We don''''t need another Clinton impeachment when we find out what a lying fraud who stole money that she really is (they''''ve got VIDEO and the tape of her voice --Hilterly supporters!!)

Is this like Rezko? Nope--Rezko involved Obama''''s association with a questionable person. This involved HRC and Bill''''s questionable actions (and potentially illegal actions) with a questionable person. Big difference.

Obama''''s could harm his campaign, Hillary''''s could land her before a Grand jury and like DeLay--facing jail time: http://tpmcafe.talkingpointsmemo.com/tal
k/2008/04/breaking-news-hillary-clinton.
php

[venkata4--2008]

"Perhaps, THIS might help you with your choosing:

OBLAMEA is right now sponsoring Senate Bill 2433 to the tune of $845,000,000,000 (thats 845 billion dollars) which will imposed a NEW TAX on ALL AMERICANS to support his vision of Anti-Poverty Aide to 3rd World countries.

We deserve the leaders and government we get. Do we deserve this?


Posted by tuffone3 at 09:04 AM : May 01, 2008"

This bill would not even pass if it is true let alone taken up for voting at all.

BTW this illegal/unjust war cost US about 700 billions directly and another 2 trillions indirectly (according to economists). So much for conservatism. Neo cons like Richard Armitidge. Paul Wolfwowitch said war will cost 50 billions in first year and second year onwards funded with Iraqi oil. So what happened please ?

[ioweign]

McCain Offers Market-Based Health Plan


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That is what we have now.

If your employer can''t afford it (with a tax credit) - how can you (with a tax credit)...

[redperimeter]

$5000 will buy me
1250 gallons of gaso. at $4/gal.
enough insulin & supplies (needles) for 2 yrs.
50 hemoglobin A1C tests + follow-up Dr. visits.

Well, you get my point.