President Obama Proposes New Health Care Reform

At a recent summit on health care reform, President Obama told a group of doctors, lawyers, and lawmakers that “one of the greatest threats, not just to the well-being of our families…but to the very foundation of our economy.” He said, “We cannot delay this discussion any longer, health care reform is no longer just a moral imperative, it is a fiscal imperative. If we want to create jobs, rebuild our economy, and get our federal budget under control, then we must address the crushing cost of health care this year.”

Many expected for President Obama to address health care reform during his first term, but few expected for him to call for a plan by the close of his first year in office. During his presidential campaign, Obama promised to achieve universal health care and to cut the average family’s health care costs by $2500 by the end of his first term. So what does President Obama propose to lift the “crushing” burden of health care costs?

First, health care reform cannot even be considered without finding the money to pay for it. Obama is seeking to set aside $634 billion over the next ten years as a health care reserve fund in an effort to move the country closer towards a goal of universal coverage as well as requiring seniors making over $170,000 per year to pay a higher percentage of their prescription drug costs, effectively reducing the burden on the already overworked Medicare system.

In addition to these measures, recently Obama’s aides have been signaling to Congress that he would support taxing employee health benefits to help pay for the health care system overhaul. During his presidential campaign in 2008, Senator John McCain proposed a similar plan, which Obama denounced as “the largest middle-class tax increase in history.” Faced with the overwhelming cost of reform, and a soaring national debt, Obama has been forced to recant. His change of heart could, however, become trouble politically when it is time for reelection. His victory in 2008 is owed in large part to staunch support from union leaders, whom oppose any such legislation.

Next, President Obama proposes to allow congress to sculpt their own bill, rather than handing them a plan and asking them to pass it; a method which failed miserably in the early nineties when the Clinton’s attempted to pass health care reform. The President does plan to provide congress with a few guidelines however. He laid out his eight principles for health care reform at the recent summit. His guidelines include:

• Guaranteeing choice of health plans and physicians
• Making health coverage affordable
• Protecting families’ financial health
• Investing in prevention and wellness
• Providing portability of coverage
• Aiming for universality
• Improving patient safety and quality care
• Maintaining long-term fiscal sustainability

During his run for office in 2008, Obama proposed a plan that would achieve his goals. The following points outline the plan he campaigned with:

• Require insurance companies to cover pre-existing conditions so that health coverage would be available to all people, regardless of health
• Create a new small business health tax credit that would make it more affordable for small businesses to insure their employees
• Cover a portion of small businesses catastrophic health coverage so that they would in turn offer lower premiums to their employees
• Prevent insurers from overcharging doctors for their malpractice insurance and invest in proven strategies to reduce medical errors
• Make employer contributions more fair by requiring large employers that do not offer health coverage to contribute a percentage of payroll towards the costs of their employee’s health care
• Establish a National Health Insurance Exchange with a range of private insurance options as well as a new public plan based on benefits available to members of Congress that will allow individuals and small businesses to buy affordable health coverage
• Ensure everyone who needs it will receive a tax credit for their premiums
• Lower drug costs by allowing the importation of safe medicines from other developed countries, increasing the use of generic drugs in public programs, and taking on drug companies that block cheaper generic medicines from the market
• Require hospitals to collect and report health care cost and quality data
• Reduce the costs of catastrophic illnesses for employers and their employees
• Reform the insurance market to increase competition by taking on anticompetitive activity that drives up prices without improving quality of care

While many in congress agree with the goals set forth by Obama’s plan, there is multitude of opinions on how to go about achieving those goals. While the opposition is generally partisan, it behooves the American health care consuming public to listen to what they have to say.

Recently, leading Republican Senators sent a letter to President Obama stating “that they would oppose any healthcare bill with a public plan because it would force insurers to compete on an unlevel playing field with the government.” Meanwhile, the President and majority leaders in Congress are arguing that there needs to be a government controlled alternative to private insurance.

The private insurance industry is also trying to position themselves to become a major player in the upcoming round of health care reform. Insurers are telling anyone that will listen that they are in the unique position to help improve quality and reduce waste. While it might not seem to be in their best interest at first glance, cooperating and facilitating reform could be a boon for private insurers. In the past few years, as premiums have steadily increased, individual and employer coverage has dwindled. At the same time government run programs for children and the elderly have grown into vital business for the insurers.
Whether any of these measures will help or whether any reform will take place at all remains to be seen. What we do know is that our current health care system will not remain viable for long. Here at Pinnacle Benefits Group we have made a commitment to do our part in improving the health care system. We have designed and are preparing to release a comprehensive wellness plan for our small business groups. It is our belief that regardless of what ever reform takes place in the next few years, Americans need to focus on improving their overall health to reduce their dependence on the health care system. If we can manage to improve our overall health only by a small fraction which is a simple matter of improving our lifestyles, we could significantly reduce the burden on the healthcare system.

If you have any questions about our Wellness Program for your small business, give us a call!

Source

http://www.nytimes.com/2009/03/15/us/politics/15health.html?_r=1&ref=todayspaper

http://www.google.com/hostednews/ap/article/ALeqM5jUy9FZma7bcviA2UQZ2pDst5tNXwD96UKS080

http://cgi.cnn.com/2009/POLITICS/03/05/health.care.summit/index.html

http://www.cnn.com/2009/HEALTH/03/20/obama.health.care

http://blogs.abcnews.com/politicalpunch/2009/03/president-oba-5.html

http://www.whitehouse.gov/agenda/health_care/