Is 2009 Our Year For Universal Health Care?
Expensive and inadequate health care has been a concern for millions of Americans for decades. There have been several improvements over the years, but we still don’t have an effective solution to this growing problem. Is 2009 the year for a complete and comprehensive health care reform for all?
In order to know where we’re going in regards to reform, we have to know where we are. Here’s some startling information about our current system. Between 45 - 75 million Americans are uninsured and approximately 50 million Americans can’t afford to cover the gap between what their insurance covers and their medical bills demand. Harvard University researchers discovered in a recent study that the average out-of-pocket medical debt for those who filed for bankruptcy was $11,854. In addition, the study found that 50 percent of all bankruptcy filings were partly the result of medical expenses. That means every 30 seconds in the United States someone files for bankruptcy in the aftermath of a serious health problem. In 2008 the United States spent $2.4 trillion on health-care, which is more than other industrialized nations, and those countries provide health insurance to all their citizens.
Our legislators have considered a number of approaches to this issue, including financial and other market-based incentives, expanding existing coverage options, and single-payer or national health insurance coverage. Here is some of the legislation being proposed before Congress.
The Healthy Americans Act (S.391) was introduced by Senator Ron Wyden (D-OR) on February 5, 2009. This bill would terminate federal health benefits coverage, including the Federal Employees Health Benefits Plan and the State Children’s Health Insurance Program (SCHIP), and, in its place, provide every adult with the opportunity to purchase a Healthy Americans Private Insurance (HAPI). Those not enrolled in another health plan and who do not oppose coverage for religious reasons would be faced with penalties if they did not enroll themselves and their children in a HAPI plan through their state. HAPI plans would have standardized coverage and state options, with guidelines for services to be developed by the Secretary of Health and Human Services. This bill will require employers and individuals to share the responsibility for the payment of HAPI plan premiums.
The United States National Health Care Act (H.R.676) was introduced by Representative John Conyers (D-MI) on January 26, 2009. This bill seeks to provide all individuals residing in the United States and its territories with free health care, regardless of their employment, income, or healthcare status (pre-existing conditions). H.R.676 would allow only public and nonprofit institutions to participate in the health care program and would prohibit private insurers from selling coverage that duplicates benefits provided through H.R.676. This program would be funded, in part, by increasing income tax on the top 5% of earners, establishing a tax on stock and bond transactions, and a progressive excise tax on self-employment and payroll income.
The American Health Security Act (S.703) was introduced by Senator Bernard Sanders (I-VT) on March 23, 2009. It is very similar to H.R. 676 with a few minor differences. This bill includes coverage to all legal non-residents. It does not cover non-cosmetic dentistry, chiropractic services or basic vision. Funding will be provided from existing federal and state health funds, in addition to an 8.7 % employer’s payroll tax and 2.2% increase in individual income tax. Also, it will include up to 1% of the budget for dislocation assistance for those people working in the insurance industry.
The National Health Insurance Act (H.R.15) was introduced by Representative John Dingell (D-MI) on January 6, 2007. This bill would, among other things, establish a National Health Insurance Board to oversee health insurance regulation. H.R.15 would impose a value added tax (VAT) of 5% on each sale of property, performance of service, and importation of property in the United States in a commercial-type transaction. Exceptions would be made for food, housing, medical care, exports, interest, governmental entities, and certain tax-exempt organizations. The revenue raised by the VAT would be deposited in a newly created National Health Care Trust Fund to pay for health care costs not covered by other means.
The Comprehensive Health Care Reform Act (H.R. 1495) was introduced by Representative Ron Paul (R-TX) on March 2, 2009. This bill would increase the tax credit allowed for health care spending to include the cost of health insurance or the amount contributed to a health savings account (HSA). The maximum amount of this credit would be dependent upon an individual’s net income tax plus Social Security taxes for a given year. This bill also would allow for some unused health benefits through a flexible health spending arrangement to be carried over to the following year or be paid to the employee as compensation. It will also repeal the 7.5% limitation for tax deduction of medical and dental expenses.
Our elected officials do not agree on a single solution to health care’s high price tag. Many approaches recommend controlling costs, while others propose free market competition as the best way to solve the problem. What we do know is if the rate of escalation in health care spending and health insurance premiums continues at current trends, the cost of indecision will severely affect employer’s bottom lines and consumer’s wallets.
As consumers, we should review and analyze each proposal before the Congress. Share your views or opinions with your state representatives. Let them know that we deserve and expect a system that ensures affordable health care for all citizens. We have an opportunity to finally reform a basic and fundamental human right that has been plaguing our nation for years. By using our collective voices, we can create a program that will satisfy the needs of all Americans and not just those who can afford it.