Obama And McCain On Health Care

CBS Evening News: How The Candidates' Proposals Would Affect Your Community

(CBS)  To help you make an informed decision in the presidential election, CBS News is devoting a large part of our broadcasts until Nov. 4 to telling you where the candidates stand on major issues - from the war in Iraq to health insurance to education … and a lot more. Each piece will be an in-depth look at the issues facing the 44th president. In this installment, CBS News correspondent Seth Doane reports on how the proposed health care policies of Barack Obama and John McCain would affect you and your community. Click here to see Where They Stand on more of the issues.

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The Issue

It's the barbeque that draws customers to The Hickory House just outside Columbus, Ohio.

"Award-winning ribs, that's for sure!" said Randy Wolfe, the restaurant's general manager.

But the employees keep coming back, too. The staff has worked here an average of 15 years.

"Keeping these employees, keeping this consistency is important ... and health insurance is part of that?" Doane asked.

"Yes," Wolfe said.

But health-care benefits may soon be off the menu for Hickory House employees, and their boss.

In 1990, the restaurant picked up the check for the full cost of medical benefits for everyone. Now, the staff must pay half themselves, and only three of the 35 workers participate.

"What we do to make it affordable for us - is we keep raising our deductible," Wolfe said. "Which, again, means more out-of-pocket for the employees."

That's more out of 25-year-old bartender Lisa Martensen's pocket - when she's already feeling the pinch.

Making less than $17,000 a year, Martensen stretches to pay her $260 monthly premium. But she does it for one reason - so that her 3-year-old daughter, Madison, is covered.

Can she continue to pay for health care?

"Right now I'm saying yes … but if it continues to go up, then I say no," she said.

Lunchtime server Candy Cooper had to say no years ago.

She says she makes about $22,000 a year and can't afford the $400 a month the company health insurance would set her back.

"I've checked into this and I can't swing it - I can't do it," she said.

Doane asked: "Does that frustrate you? Does that worry you?"

"Very frustrating," she said.

Cooper is one of the 45 million Americans who simply go without insurance. When she recently got dizzy at work, an ambulance was called - but she didn't get in.

"I didn't want to go to the hospital due to the medical costs," she said.

And that worries her boss, who is counting on the next president to find a solution.

"I don't have the answers. That's why we're hoping they do," Wolfe said.

The Candidates

Both Sens. Barack Obama and John McCain agree that health care costs are out of control - but they have radically different ideas on how to fix them.

McCain's approach is all about driving down costs to make it more affordable.

Under his plan, individuals would pay taxes on the health insurance benefits they receive from their employer. To offset that new cost - or to encourage people to go buy insurance on their own, McCain would provide a tax credit that could only be used for health care: $2,500 for individuals - double that for families.

"I will give every family, every family in America, a $5,000 credit to buy their own health insurance policy and let them choose their own doctor," McCain said. "This will make insurance affordable to every American."

Though today, the average family plan is worth $12,000. But McCain thinks these tax credits would spur market competition - as insurance companies vie for their piece of the tax credit money, cheaper health insurance options would be created.

Obama's emphasis is on increasing access. He would give small businesses a tax credit to ease the burden of offering health insurance to their employees. And larger companies would be required to either provide insurance or pay into a national fund, called the "Health Insurance Exchange," which could offer more affordable options to those currently uninsured.

"I will finally keep the promise of affordable, accessible health care for every single American," Obama said. "You'll be able to get the same kind of coverage that members of Congress give themselves."

The Impact

So, what's the potential impact of these proposals?

CBS News checked in with a healthcare consultant at Towers Perrin to see how Martensen, Cooper and the Hickory House would fare under these plans.

"I think Candy and Lisa are more alike than they are different - both of them are lower-wage employees who are currently finding health care unaffordable in its current state," the consultant, Ron Fontanetta, said.

Though each candidate tackles the problem in different ways, both would give each of them a number of cheaper options.

Under Obama's proposal, they would be able to choose from an array of plans through the National Exchange, and may qualify for subsidies as lower-income workers.

Under McCain's proposal, both women could use their tax credit to buy healthcare on the open market.

"Does the idea of having a tax credit seem appealing to you, where you could go out and buy your own insurance?" Doane asked.

"It seems kind of scary, I think, really," Cooper said. "I just wouldn't know what I was choosing, what I was picking, whose policy I'm getting into."

But Martensen likes the idea of more choices.

"If you could have a scaled-down plan, which would cover you in case of emergency - but would cost a lot less each month, would you take that?" Doane asked.

"If there was a way I could pay less and have less coverage for me, but maybe pay a little more and have coverage for her, I would do it," she said.

But the biggest change may be for the Hickory House itself.

"Under either proposal it really begs the question - does the Hickory House need to provide coverage any more? Both proposals obviate the need for a small employer - like the Hickory House - to be in the health care business at all," Fontanetta said.

You'd think that'd be a relief to Wolfe.

"I would like to go ahead and to be able to help the employees through our business with health insurance," he said.

"Even though you spend a lot of time thinking, worrying about healthcare, you still want to be … part of offering it?" Doane asked.

"I would still like to - I would like to have that option," he said.

It's likely that larger employers, under both candidates' proposals, would stay in the health care game - to attract and retain good employees. But the only hope for the Hickory House is that a new president makes health care the first order of business.

[healthins11]

What about insurance for people with preexisiting conditions, like diabetics. If you have health insurance you better keep it because no one else will accept you. while on cobra i could still stretch and afford it. $360 for individual policy and now it is $971. i have no other option. this is Blue cross Blue shield of Georgia. i could try and get a lower cost plan from them but i would have to apply and send in money along with the application. what kind of business sense does that make. they no there is no competition for me to go apply to, so they can charge me what they like. i am paying probably close to a family of 4 rate. so my question is WHAT ARE THE CANDIDATES GOING TO DO ABOUT THAT IN THERE HEALTHCARE PACKAGES? there is no freemarket here. we must have auto insurance...insure our cars but not our health ????

[davidbthelen]

We have emergency rooms that are at record time for patients to wait before getting treatment. What would happen if this country unfortunately has a really big emergency, our emergency rooms are already full to capacity.
Both presidential candidates ought to have major town hall meetings, asking the public for creative ideas to get patients to look for health care at wellness centers. We, as a nation, ought to create policies to keep our emergency rooms clear.

[mairin27]

A nation that continues year after year to spend more money on military defense than on programs of social uplift is approaching spiritual doom.
-Martin Luther King, Jr.

[mairin27]

the shortage of physicians is an intentional manipulation of the market.


No, the shortage of physicians directly relates to the huge debt incurred to get through medical school and the 10-15 years needed to pay that debt.

[mairin27]

Yes we can afford universal healthcare, yes, for everyone.

OR, we can have Palin''''s war against the Russians and the universal draft.

Choose.
I am voting Obama in 08.


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Posted by obbcbs at 02:07 PM : Oct 10, 2008

For the cost of the war in Iraq we could have insured every man, woman and child in the country.

[wevehadenuf]

I think for now I''ll take comfort in knowing that Obama has a solid education very unlike John Mccain

[wevehadenuf]

I am surprised by how profoundly unknowledgable some people are regarding Obama''s U.S. citizenry. How could you possibly finish even elementary school without knowing this information is confirmed BEFORE you become a U.S. senator? You must have really low standards for yourself and your country to think the government did not check on this prior to making him a very important public official who is running for President. Wow, again you may want to re-take 5th grade social studies!

[betterthanob]

Hey iamforhonesty, have you asked where Obama was born and does that hospital have the certificate or why HE ca not produce one??

You want honesty, ha, more like you want a socialistic state run country.

[mmstar20]

Why are you just focusing on low-income workers, who could probably (most likely) qualify for a government sponsored health plan and the children would get free healthcare under SCHIP. What about the middle-income folks? Plus, this doesn''t give specifics of either candidates'' plans for healthcare. The WSJ has done two pieces already on why McCain''s is better.

[noloyalisti]

McSame, being the good corporate sympathizer he is, just wants to continue more of the same failed policies of the Republicons. Their fake "free trade" policies are dead. Killed by fascist out of control right wing corporations. Time for the working people to rise up and take it back.

[dbaecht]

"Americans have been brainwashed into thinking of socialism and liberalism as bad words, when in actual fact this country was founded on socialistic and liberal ideals."

Fotrunatly there are enough of us that know this to take back this country from the right wingers. Don''t get me wrong the extreme right has a right to their opinion but not the right to force it on everyone else. The english tried that once and look where it got them.
Long live FREEDOM.

[obbcbs]

There is nothing in this life that is your right except the right to a fair trial. Everything else is a responsiblity. If you don''''''''t understand that you are still a child.
Posted by john43218 at 01:03 PM : Oct 10, 2008

No, John you do not have a right to even know what charges are being considered against you, in the Bush McCain regime. The "terrorist act" doesnt require the state to inform you of anything, or charge you with a crime or provide a timely trial or allow you to cross examine witnesses. That''s all gone.

VOTE OBAMA in 08 and restore habeas corpus.

[obbcbs]

This Obama promise is intended to force private health insurers to go out of business, thus leaving everyone with no choice But to enroll in his national plan of socialized medicine.
Posted by maakahill at 10:39 AM : Oct 10, 2008

And what exactly is the problem with this picture? Eliminating the leeches who prey off the ill? Taking the middle man out of the picture?

It will save tens of billions every year and that money will care for the young and the elderly.

The alternative of McCain is to eliminate group rate plans so everyone has to fight insurance companies, on their own, and if you have an illness that doesnt go away, you will get a higher rate. And since the companies can move to a place with no regulation, they wont cover your issues anyway.

[obbcbs]

Mr. McCain, you solicited donations and an endorsement from Leonore Annenberg (one of the 100 former ambassadors endorsing you).

It was her Annenberg foundation that put Ayers, whom you call "a domestic terrorist", on the board of the Annenberg Foundation. Annenberg chose Ayers because he is a scholar and EdD. And sure enough Ayers raised $49 million dollars for eduction in Chicago, and yes, Obama was on the board too.

According to your logic, why are you announcing that you are proud to be endorsed by, and accepting money from, somebody who gives a position of prominence to terrorists?

[obbcbs]

Yes we can afford universal healthcare, yes, for everyone.

OR, we can have Palin''s war against the Russians and the universal draft.

Choose.
I am voting Obama in 08.

[obbcbs]

Mr. McCain, you solicited donations and an endorsement from Leonore Annenberg (one of the 100 former ambassadors endorsing you).

It was her foundation that put what you call "a domestic terrorist" on the board of the Annenberg Foundation, with Barack Obama.

According to your logic, why are you announcing that you are proud to be endorsed by, and accepting money from, somebody who gives a position of prominence to terrorists?

What do we know about the real John McCain?

Or is it that you are just a complete hypocrite with no standards, no moral compass, and not a single shred of decency?

[articfox4]

For the first time in all my voting years ..... My husband and I are choosing not to vote! Michelle

[sniper-john]

McCain wants to impose the largest middle class tax ever dreamed up in DC.

What do we get for it?

Billions of tax dollars shipped to big insurance companies.

Ruined employer-provided health coverage.

Inferior individual coverage.

Garbage.

[jn122736]

This Obama promise is intended to force private health insurers to go out of business, thus leaving everyone with no choice gut to enroll in his national plan of socialized medicine.
Posted by maakahill at 10:39 AM : Oct 10, 2008
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maakahill, Using your logic, we should disband our socialized military, and everyone should just hire or rent a private army when they are threatened. And while we are at it we should totally disband congress, the presidency, the Supreme Court, all state and local fire departments and police departments, et al.

Americans have been brainwashed into thinking of socialism and liberalism as bad words, when in actual fact this country was founded on socialistic and liberal ideals.

Disabling sickness caused by disease and/or accidents are as much a threat to Americans as unexpected fires, robberies, or invasions by foreign enemies.

The whole idea of a society is to insure the mutual protection of EVERYONE, equally

[aewill94]

TO MINUTEMAN8---What has McCain offered you, can you explain his plan. Because McCain and Palin have not been able to do this. Explain in detail how they are going to help the American people. No he plans to stay the course like Bush, and tell you the economy is doing great, while stocks fall on wallstreet.