As we gain momentum towards the coming presidential election
one of the main topics is the state of America’s healthcare. If you follow
politics you are well aware of the Affordable Healthcare Act a.k.a. Obamacare. This
proposed law is currently under review by the US Supreme Court. What no one
seems to be talking about is what the Republican Party is proposing to reform
or improve America’s healthcare.
First let’s review the proposed changes to our current healthcare
system under Obama’s Affordable HealthCare Act:
- Prohibiting
health insurers from refusing coverage based on patients' medical histories
- Prohibiting
health insurers from charging different rates based on patients' medical
histories or gender
- Repeal of
insurance companies' exemption from anti-trust
laws
- Establishing
minimum standards for qualified health benefit plans
- Requiring
most employers to provide coverage for their workers or pay a surtax on
the workers wage up to 8%
- Restrictions
on abortion
coverage in any insurance plans for which federal funds are used
- An expansion
of Medicaid
to include more low-income Americans by increasing
Medicaid eligibility limits to 133% of the Federal Poverty Level
and by covering adults without dependents as long as either or any segment
doesn't fall under the narrow exceptions outlined by various clauses
throughout the proposal.
- A subsidy
to low- and middle-income Americans to help buy insurance
- A central health insurance exchange
where the public can compare policies and rates
- Allowing insurers
to continue to dictate limits on evaluation and care provided consumers by
their physicians ("managed" or "rationed" care)
- Avoidance of
captivating or regulating premiums which are routinely and in accordance
with this law, charged by an insurance company for coverage, which might
make the coverage non-affordable vis-a-vis a consumer's income
- Requiring
most Americans to carry or obtain qualifying health insurance coverage or
face a fine
and/or prison term for felony non-compliance.
- A 5.4% surtax
on individuals whose adjusted gross income exceeds $500,000 ($1 million
for married couples filing joint returns)
- A 2.5% excise
tax on medical devices
- Reductions
in projected spending on Medicare of $400 billion over a
ten-year period
- inclusion of
language originally proposed in the Tax
Equity for Domestic Partner and Health Plan Beneficiaries Act
- Inclusion of
language originally proposed in the Indian Health Care Improvement Act
Amendments of 2009.
- Imposing a
$2,500 limit on contributions to flexible spending accounts
(FSAs), which allow for payment of health costs with pre-tax funds, to pay
for a portion of health care reform costs.
Now
that you have a clear understanding of the Affordable Care Acts proposed
changes let’s look at what Mitt Romney is proposing. The main change is how
Americans will receive their healthcare at work. Currently employed Americans
(whose employer offers health insurance) get a tax break because the health
benefits are not taxed. Likewise the employers (businesses) that offer this
healthcare to their employees receive a tax break as well because their
contributions to the healthcare plan are not taxed. Under Romney’s proposal
American citizens would receive a tax break to purchase their own independent
health insurance. Proponents of this plan say that this will bring the benefits
of competition back to healthcare and give consumers more choices. People would
be able to purchase what they want and not just what their employers want to
provide. Another good point from proponents is the fact that our current system
discriminates against those seeking health insurance that do not work or are
not provided health insurance by their employer. Critics believe this would
involve more risk for people and leave a large amount of Americans without
health insurance.
Although we do not have the details on “Romneycare” as we do
with Obamacare (Romney has only given outlines of the plan compared to the
written law proposed by Obama) the main changes are as stated: receiving a tax
break to purchase health insurance individually (outside of your employer);
provide strong incentives for companies to not
offer insurance to employees; reform the current healthcare law’s by changing
the tax laws and bringing free-market competition to our healthcare system. If the
Affordable Healthcare Act is shut down and Romney is elected I would not be
surprised to also see some of the more popular aspects of this law incorporated
into Romney’s plan.
As an Obama supporter I must say I am intrigued by Romney’s
ideas. I believe in the Conservative view that the tax law needs to be revised
to bring competition to the healthcare system and this is essential if you are
going to achieve any kind of healthcare reform. As with any market, competition
will provide more beneficial options and pricing on health insurance for the consumer.
