Universal Health Care Plan Proposed In Senate
Democratic Senator Ron Wyden of Oregon has unveiled an ambitious plan to provide universal health care coverage for all Americans by requiring individuals to sign up for private insurance equal in quality to the coverage currently available to U.S. Congress members and federal workers. The proposed legislation would abolish employer-sponsored health plans but require companies to contribute to their workers' health insurance premiums, based on each employer's ability to pay.
According to Wyden, the proposed Healthy Americans Act (HAA) would provide "universal coverage for no more money than our country spends today. Better care, financial health and security, no increase in costs."
Endorsed by Andy Stern, president of the Service Employees International Union (SEIU), and Steve Burd, chairman and president of the Fortune 50 employer Safeway, HAA would establish a centrally financed system of private health insurance, covering all Americans except those who currently receive coverage through Medicare or the military. Individuals would choose from a selection of private health care plans offered through state-run purchasing agencies that receive partial financing from the federal government. Participants in HAA plans would pay premiums through their annual income tax filings, with premiums fully subsidized for those individuals with incomes below the federal poverty level and partially subsidized for people with incomes between 100% and 400% of the federal poverty level.
Under the proposed legislation, employers that sponsor health plans would terminate their existing coverage and pay out the amount saved as increased wages to individual employees. Workers would then use this sum to purchase insurance. Companies that do not currently provide health benefits would be required to make phased-in payments that reflect their relative ability to pay. Health insurance would no longer be tied to employment, and eligibility and rates would not be based on factors such as age, gender, occupation, or previous and existing conditions.
An analysis of the proposed legislation prepared for Sen. Wyden by health care consultancy the Lewin Group concluded the new federal program costs associated with HAA would amount to an estimated $812.9 billion. Researchers noted, however, that these costs would be offset by premium payments, employer assessment revenues, Medicaid savings, reduced payments to hospitals, increased Social Security tax revenues, and the elimination of selected business tax credits. According to Wyden, HAA would contain costs by encouraging preventive care and eliminating waste, resulting in savings of $1.48 trillion over 10 years.
Wyden commented, "Fixing health care is not as complicated as one might think. Start by making care more affordable. That means eliminating inefficiency, beginning with when a person signs up for coverage. Get citizens good quality outpatient health care so they don't go to hospital emergency rooms. Reward prevention—health care, not sick care. Beef up the quality of care by reducing medical errors in our hospitals."
