20 Million Could Lose Health Insurance Under McCain Plan

Armen Hareyan's picture
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In a Web Exclusive released just today, September 16, 2008, in Health Affairs , health researchers estimate that approximately 20 million people who currently have health insurance coverage could lose it under McCain’s health proposal.

McCain's plan could force people OUT of health insurance coverage? Here is how it can happen. When your employer offers you health insurance, he or she receives a sizable tax exemption for doing so. But McCain proposes removing that exemption and taxing health benefits. The impact of that taxation, from a candidate who vociferously opposes tax increases, is not completely clear. But economists believe that it would cause employers to drop coverage, pushing working Americans into the individual health insurance market, where benefits could be less generous but even more expensive.

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It costs more to provide health insurance benefits to millions of individual than it does for groups of employed individuals. So costs to individuals would increase, by some estimates, by $2000 a year for a family.

McCain’s proposals, to create high risk pools or multi-year plans, are dismissed as unworkable by the authors of this article (Buchmueller, Glied, Royalty and Swartz). And they give lots of reasons why. The costs of his plan are estimated to be $1.3 TRILLION over ten years. And that doesn’t even count the $100 BILLION to provide the guaranteed access plans (or high risk pools) he proposes.

Therefore, what do we have with McCain? More taxation. Less coverage. More costs. Fewer benefits. Oh, and did we mention, MORE uninsured not less? It doesn't sound like a Republican, does it? Obama's health plan will cost less and cover more people. So how come so few people know about this?

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