Changes in Health Insurance

There has been a lot of talk recently regarding the health plan that President Obama has been working so closely on. Although the plan is still in the beginning phases of being developed, some of the suggestions and discussions have been very interesting to read about and follow along. In an article I found in the New York Times, it discusses some of the problems that have been brought up between the private insurance and a government-administered health insurance plan. Much of the opposition for this plan lies with the democrats weary of the costs associated with the new plan. Also, many are concerned that a govenmental plan will force private insurance out of business. In response to this, President Obama stated that it is "not logical" that a public plan would undermine the private insurance market. He goes on to state that "We have not drawn lines in the sand other than that reform has to control costs and that it has to provide relief to people who don't have health insurance or are underinsured."

However, with a governmental health plan, many members of Congress believe that it will ultimately increase costs and push private insurance out of the market. "Regardless of how it is structured, a government plan would use its built in advantages to take over the health insurance market," from Karen M. Ignagni, president of America's Health Insurance Plans.

The financing of this health policy also concerns many in Congress. When President Obama first presented this health care proposal, the price tag totaled $1 trillion over 10 years. However, this price has now reached $1.6 trillion over 10 years. Part of this increase is based on the part of the plan which states that employers who do not offer "affordable" coverage to employees would have to help pay the cost of such benefits for their low-income workers. Under this, employers would have to pay half the cost of providing Medicaid for any of their low-income employees in that program. Senator Orrin G. Hatch (R) stated that the proposal "would be a disaster, because it would create a disincentive for employers to hire lower-income people on Medicaid." With everything that has been written about this proposal, I still believe that there has not been enough solid information given to be in support or opposition of this bill, personally. Everything that has been written about have been very broad and vague. Just like President Obama stated, "Those are the broad parameters that we've discussed." I do believe that the American healthcare needs to be reformed, however I do not know if it is prepared and can be successful based on the broad proposals that have been presented thus far. I will be actively following this story, patiently awaiting further information.

http://www.nytimes.com/2009/06/24/health/policy/24health.html?ref=health