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New Health Insurance Plan to Limit Premium Hikes


The Obama administration vowed to take health care reform by the horns and wrangle it into a workable, feasible program that gives every American health insurance coverage. However, the move is easier said than done. After much stalling, due in part to Republican resistances, and Democratic infighting, Obama has forged ahead with a new plan that will be revealed on Monday.

The plan comes amidst a firestorm created by many health insurance providers including Anthem Blue Cross in California and Blue Cross Blue Shield in Oregon and Michigan among others, whose proposed rate hikes make it nearly impossible for individuals to keep paying for health insurance coverage. The new bill includes a measure that would limit such haphazard premium increases.

In a way, the rate hikes managed to salvage Obama’s ailing health care reform movement. It has single-handedly managed to rally support against health insurance providers. Americans are coming to the austere conclusion that health care as it exists today is neither affordable nor high quality.

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A new survey conducted by Gallup Daily finds that health insurance for Americans remains dependent on age and income. For example, Americans 18 years old and older have health insurance of some form or another. For Americans 50 and over, government sponsored coverage is most prevalent.

Health insurance coverage was also more likely had with higher income. However, many Americans fell between the thin line of being poor but not poor enough to receive government subsidies. Obama’s new plan target these people and aims to provide affordable coverage for them.

Among the many planned reform measures in the plan is to eliminate fraud and wasteful spending. The pre-existing condition clause will also be removed as a barrier to receiving health insurance coverage.

The plan will most likely bring heated discussion especially from Republicans. However, the plan comes in time for the health care summit on Thursday. The summit will bring congressional leaders from both parties to discussion.

Written by Lani Shadduck