Healthcare is becoming a larger issue with each passing year. As our population ages, more Americans are finding the need for proper health insurance and the costs of that insurance are rising each year as well. In the year 2000, a little over 12% of our population was over the age of 65 and the Administration on Aging (AOA) estimates that by 2030 that number will jump to nearly 20%. Although healthcare has been an issue in every major election for the last twenty years, this next election will likely have a significant impact on the healthcare system here in our country. The next four to eight years will almost certainly see considerable changes, and whoever we elect will be the one initiating those changes. Here at Pinnacle Benefits Group we believe in the merit of an informed electorate, so we have done our best to compile a brief comparison of where the nominated presidential candidates stand on the healthcare issue.
A Quick Comparison
Before we delve into the verbiage of each of the candidates’ stances on healthcare reform, let’s take a quick look at where they stand in layman’s terms.
Barack Obama
Senator Barack Obama (D-IL) has proposed a plan that removes the burden of health insurance from the individual and places it on the federal government. Obama believes that we must have a national healthcare plan with guaranteed eligibility for every American while expanding the scope of Medicaid, creating a national watchdog agency to keep tabs on the private healthcare industry, and forcing businesses to either offer competitive health coverage or contribute to the national healthcare program.
John McCain
Senator John McCain (R-AZ) has proposed a plan that places the responsibility of health insurance in the hands of the individual. McCain believes that we should give tax credits to individuals to allow them to purchase their own health plans while encouraging the expansion of Health Savings Account type health plans.
What They Say
“We now face an opportunity, and an obligation, to turn the page on failed politics of yesterday’s health care debates... My plan begins by covering every American. If you already have health insurance, the only thing that will change for you under this plan is the amount of money you will spend on premiums. That will be less. If you are one of the 45 million Americans who don’t have health insurance, you will have it after this plan becomes law. No one will be turned away because of a preexisting condition or illness.”
- Barack Obama in Iowa City, IA May 29th, 2007
“When families are informed about medical choices, they are more capable of making their own decisions, less likely to choose the most expensive and often unnecessary options, and more satisfied with their choices. We took an important step in this direction with the creation of Health Savings Account, tax-preferred accounts that are used to pay insurance premiums and other heath costs. These accounts put the family in charge of what they pay for. And, as president, I would seek to encourage and expand the benefits of these accounts to more American families…
Americans want a system built so that wherever you go and wherever you work, your health plan goes with you. And there is a very straightforward way to achieve this. Under current law, the federal government gives a tax benefit when employers provide health insurance coverage to American workers and their families… Many workers are perfectly content with this arrangement. Their employer-provided health plans would be largely untouched and unchanged.
But for every American who wanted it, another option would be available: Every year they would receive a tax credit directly, with the same cash value of the credits for employees in big companies, in a small business, or self-employed. You simply choose the insurance provider that suits you best. By mail or online, you would then inform the government of your selection. And the money to help pay for your health care would be sent straight to that insurance provider… It would be yours and your family’s health-care plan, and yours to keep.”
John McCain Tampa, Florida April 29th, 2008
What Does It Mean?
There is a fundamental difference in the healthcare plans proposed by Barack Obama and John McCain. Just one look at the basics of these two plans reveals a fundamental difference in the two candidates. This article is not meant to persuade you to one side of the fence or the other, just to provide you with the knowledge to choose for yourself. So what is the disparity between these plans? Let’s start by taking a look at arguably the most important difference.
Who is going to pay for healthcare insurance? Under Senator Obama’s plan for universal healthcare, the program will be funded by the federal government. He also suggests expanding the scope of Medicaid, which is also a federally funded healthcare program. That being said, there are only two ways the federal government can pay for any program: loans and taxes. His plan shifts the responsibility of health insurance from the individual and private business to the federal government, or in other words the tax payers.
Senator McCain proposes giving individuals even greater responsibility when it comes to their healthcare plan. He suggests encouraging the expansion of Health Savings Accounts as well as giving families a tax credit to be applied to paying for health insurance. The majority of the financial burden for Senator McCain’s plan would remain on the individual, but the federal government would take on some of the burden in the form of a tax credit. The addition of this credit to our current tax code without any other changes would obviously require and increase in taxes or a loan, so this plan is not without cost to the tax payers, however it should be significantly less than the cost of Senator Obama’s plan.
Once we get past the responsibility aspect of the issue, there is still some disparity in the plans offered by the two candidates. Senator Obama plans to continue to require businesses to offer benefits, or pay what amounts to a fee to the federal government to help offset the costs of the universal healthcare program (although small businesses under a certain size will be exempt). Senator McCain plans to shift the burden of healthcare insurance off of the employers as well. He believe that it is necessary to allow individuals to own their own healthcare plan, which allows them to take it from job to job without ever experiencing a lapse in coverage or changing benefits. This aspect of the issue obviously holds some importance for business owners across the country.
Where Can I Find Out More?
If you’d like to find out more about the contents of this article, check out the candidates’ websites, which can be found at the bottom of the article or take a look at any of the numerous candidate comparison websites available on the web.
Source
http://www.barackobama.com
http://www.johnmccain.com
http://www.aoa.gov/prof/statistics/online_stat_data/AgePop2050.aspx
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