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From what I've heard about Obama's proposals, his goal is to get those 47 million people who are currently uninsured into the system and offer them some type of coverage, whether they receive it from employers or through a public health plan. Additionally, he wants to cut costs for those who currently do have coverage and bring quality care to the uninsured.
In order to avoid the chaotic consumer reaction to change, he says, "if you like what you have, you can keep it." He claims the right to buy health insurance does little no good when you are still stuck with a policy that can cost you up to $10,000 annually. To increase access to those who are unable to afford coverage, he proposes a lower age entrance to Medicare payments. This would allow individuals to buy into the Medicare program at 55 or 60. Sllowing people to buy into Medicare at 55 or 60, would protect people with early retirement or those that have been laid off. However, the Medicare fund is already suffering at the hands of the aging population.
Another approach is to establish a public health insurance plan, a basic package offering comprehensive benefits. Obama's promise of "you can keep it if you like it" may sound like a good deal, but the almost certain increase in taxes to support a public health plan may push those who currently can afford their premiums to become a burden on the already weighed down system. Most people still receive coverage through employers, despite the majority of uninsured who have at least one fulltime worker in the household. By mandating that employers offer health insurance, which would provide a significant portion with health benefits who currently have none, without giving a hefty tax cut to those businesses they can't possibly offset the cost. This would force small businesses to lower wages or possibly drive several small businesses into bankruptcy.
To make the system more efficient, he would also like to cut a total of $700 billion per year in his budget.
"Health reform means trying to bring insurance to those who don't have it without making the federal budget deficit even deeper, controlling the growth in health spending without denying patients what they think they need, limiting unnecessary procedures without hampering the autonomy of doctors to do what they think is best."
Obama strives to increase access and quality to the uninsured, while simultaneously cutting costs all together.
"President Obama has said that he and Congress will make both groups happy by cutting costs for those who have coverage and by bringing quality care to those who currently have no insurance."
Despite the recession, healthcare spending is projected to increase 5%, while GDP is shrinking by 0.2%. Without a magic money tree we can't possible support the factors increasing cost, such as advances in technology and specialist care, and consumers are under the mistaken belief that these are necessary evils.
The first step in health care reform needs to limit the use of expensive technology and specialist care. Without such managed care, Medicaid will suffer with a substantially higher enrollment.