Kerry's (Awesome) Health Plan Abbreviated - Read & Comment

[DrFunkenstein]

Three areas - costs, coverage, and kids - should be at the heart of any proposal.

Today I am announcing a plan that will reduce the cost of health care for all Americans, allow all Americans to buy into the same health plan that the President and Members of Congress give themselves -- with subsidies for those who can't afford insurance - and provide health care coverage for every child in America.

And it will bring us extraordinarily close to our goal of universal coverage. It is paid for by canceling the Bush tax cuts for the wealthiest Americans and closing corporate loopholes, while keeping tax cuts for the middle class.

It builds on the system we have now instead of trying to create a government-run bureaucracy. We don't need to reinvent the wheel. But we do need real and far-reaching reform.

I will not add bureaucracy - I will slash it. I will not stick Americans into a one-size-fits-all program - I will give them more options and more choices.

In the year 2000, America spent $1.4 trillion on health care. In 2010, that number is estimated to be twice as high. Unless we do a far better job of containing costs our health care system will literally collapse.

That's why my plan starts with containing costs.

It would be one thing if all those dollars were being spent making Americans healthier. They're not. Our system simply has too much waste and too much fraud; there's too much inefficiency and too much abuse, too much bureaucracy and too much greed.

First, my plan will stop spiraling health care premiums by containing catastrophic costs so that health care is more affordable for all of us. Only four-tenths of one percent of private insurance claims are in excess of $50,000. However, these claims account for 20 percent of medical expenses for private insurers.

Under my plan, the Federal government will cover a portion of these catastrophic claims - 75 percent - for companies that provide affordable coverage for all their workers, guarantee they'll pass back the savings to their employees, and put in place preventive care - which is one of the best ways to keep costs under control. By covering a significant portion of catastrophic costs in this way, we will reduce average premiums by up to 10 percent.

Second, prescription drug costs are rising by almost twenty percent a year. We need incentives for companies to continue their research into groundbreaking medications. But when drug companies and wholesale drug buyers exploit loopholes to skim from the top, we all pay a price.

Whether they know it or not, about eighty percent of Americans get their prescription drugs through wholesale drug buyers that process hundreds of millions of claims a year. Because these giant middlemen buy in bulk and because of their power to get products sold, drug manufacturers offer them massive rebates. But the middlemen refuse to pass the savings on to consumers.

My plan says to these companies: "If you want to do business with the government on health care, you need to disclose the financial incentives you receive." Americans should be paying for prescriptions that help them, not paying extra to subsidize greed.

The third step to hold down costs is to apply new technology and medical discoveries to cut the amount that goes to bureaucracy and waste by at least 50%.

A quarter of the money America spends on health care goes to non-medical costs - basically the time spent paying bills and handling paperwork. No other industry is so inefficient.

While banks have cut their costs to less than a penny per transaction using computers and technology, a single transaction in health care can cost as much as twelve to twenty-five dollars - - and not a penny of that goes to care.

Putting modern systems in place requires an investment on the front end. That's why I propose to help hospitals and other health care providers pay for up front cost with a technology incentive bonus. And for insurance companies that do business with the government, using modern technology will be required.

These technologies don't just save money, they save lives. A recent Institute of Medicine study found that between 44,000 and 98,000 people a year die of medical errors. Computerized medical records and support software can reduce medical errors by as much as 88 percent. As many as 80,000 lives saved each and every year.

We also need to do a better job of holding down medical malpractice costs. We need a national system in place that will weed out the meritless lawsuits without taking away patient's rights.

Small businesses make up 99 percent of all companies and they employ 60 percent of all our workers. But they are the businesses that can least afford health insurance.

And it's not just that small businesses can't afford the coverage; it's that they can't afford to administer it. Those that try get buried under a mountain of paperwork, lost in a forest of forms. My plan focuses new resources on them - targeted tax credits to make health coverage both manageable and affordable.

Nine million Federal employees and their families now receive health care through a system that offers a wide choice of affordable coverage with group protections and good benefits - and it should be available to every American who wants it.

Under my proposal, everyone from large employers to the self-employed or those that buy coverage as individuals will be able to join this system. And small businesses that have the hardest time getting coverage will get a tax credit to buy in at a price they can afford.

We need to make sure that those who are suddenly without work do not go without health care. My plan offers them a 75 percent tax credit to help them either to buy into the Congressional Health Plan or to pay for the coverage they already have.

I'll make the following deal with America's governors: The federal government will pick up the full cost of the twenty million children enrolled in the Medicaid program if you agree to enroll the children who are eligible for CHIP, expand coverage to their parents, and - when you get back on your feet - assure that low-income adults get health coverage as well.

States will be able to close some of their deficits and we'll cover nearly twenty million more Americans who go uninsured today.

This truly is a plan to leave no child behind. Rather than families having to fill out long applications that would give a CPA a meltdown, children will be automatically enrolled - no questions asked.

Finally, and for me a special responsibility, my plan will provide America's veterans with the health care their service and sacrifice have merited. About four hundred thousand qualified veterans are being denied access to VA health care. And more than 235,000 veterans already in the system are waiting six months or more for their first doctor's visit.

Next week, Congressman Boswell and I will join together to put an end to this injustice.

So today I offer America a bold new choice. Tax cuts for the wealthiest Americans or health care for all Americans, cost reductions for all Americans, immediate coverage for all of America's children - the plan I propose today meets the tests of boldness and responsibility.

[papau]

1. Excellent - now we transplant Dean's fire and spine into Kerry

and we are ready for 04.

As the ABC Note says, clear policy is better than nuanced policy because media is not that smart and will just dump on the nuanced idea.

So "same as Congress gets" works a lot better than Kerry's explanation for Iraq war vote.

[DrFunkenstein]

2. Agreed

Kerry is much stronger when he is on the charge with issues like health care and the environment.

But the Iraq vote is a nuanced debate between Kerry and Dean, not a black and white battle between Kerry and Bush. Kerry will lay into Bush like a machine gun.

[Pavlovs DiOgie]

3. Dr. F help

I heard a blurb on msnbc (I think) that criticized Kerry's health plan as not possible if he only repeals the part of Bush's* tax cut that included the weathy (which is apparently what he wants to do). Is this true, or a wild accusation?

[DrFunkenstein]

4. I Don't Think It Is A "Wild" Accusation

This seems to be a legitimate debate about where revenues are going to come from. If I knew one way or another, I would tell you, but honestly I don't have the numbers.

I think the plan on its own merits is excellent, particularly the way he focuses on cutting costs in interesting and progressive ways. Kerry is due to give another economic speech soon, and I think that's when we'll have the answer.

[blm]

10. I thought there was only a 4 billion dollar difference

between the Kerry plan and the Dean plan. I think that is why Kerry doesn't find the need to cancel the working class' tax cut, just the taxcut received by the wealthy.

[w4rma]

5. Dean: Promoting American Health

...
For a year now, I have been traveling this country advocating a repeal of Bush's tax cuts so that we can provide universal healthcare and restore fiscal discipline. Many have questioned the political wisdom of challenging the president on politically popular tax cuts.

I believe, however, that given a choice between having health insurance or keeping all of the Bush's tax cuts in place, most Americans will choose health insurance. My plan will cost $88.3 billion -- less than half of the president's tax cut -- with money left over to pay down the deficits run up by this administration.

My plan consists of four major components.

First, and most important, in order to extend health coverage to every uninsured child and young adult up to age 25, we'll redefine and expand two essential federal and state programs -- Medicaid and the State Children's Health Insurance Program. Right now, they only offer coverage to children from lower-income families. Under my plan, we cover all kids and young adults up to age 25 -- middle income as well as lower income. This aspect of my plan will give 11.5 million more kids and young adults access to the healthcare they need.

Second, we'll give a leg up to working families struggling to afford health insurance. Adults earning up to 185% of the poverty level -- $16,613 -- will be eligible for coverage through the already existing Children Health Insurance Program. By doing this, an additional 11.8 million people will have access to the care they need.

Many working families have incomes that put them beyond the help offered by government programs. But this doesn't mean they have viable options for healthcare. We'll establish an affordable health insurance plan people can buy into, providing coverage nearly identical to what members of Congress and federal employees receive.

To cushion the costs, we'll also offer a significant tax credit to those with high premium costs. By offering this help, another 5.5 million adults will have access to care.

Third, we need to recognize that one key to a healthy America is making healthcare affordable to small businesses.We shouldn't turn our back on the employer-based system we have now, but neither should we simply throw money at it. We need to modernize the system so employers will have an option beyond passing rising costs on to workers or bailing out of the system entirely. Fortunately, we have a model of efficient, affordable and user-friendly healthcare coverage: the federal employee health system.

With the plan I've put forth to the American people, we'll organize a system nearly identical to the one federal workers and members of Congress enjoy. And we'll enable all employers with less than 50 workers to join it at rates lower than are currently available to these companies -- provided they insure their work force. I'll also offer employers a deal: The federal government will pick up 70% of COBRA premiums for employees transitioning out of their jobs, but we'll expect employers to pay the cost of extending coverage for an additional two months. These two months are often the difference between workers finding the health coverage they need, or joining the ranks of the uninsured.

Finally, to ensure that the maximum number of American men, women and children have access to healthcare, we must address corporate responsibility. There are many corporations that could provide healthcare to their employees but choose not to. The final element of this plan is a clear, strong message to corporate America that providing health coverage is fundamental to being a good corporate citizen. I look at business tax deductions as part of a compact between American taxpayers and corporate America. We give businesses certain benefits, and expect them to live up to certain responsibilities.
...
http://www.deanforamerica.com/site/PageServer?pagename=policy_statement_health

[DrFunkenstein]

6. I'll Have To Look More Into Details At His Website

From here, I got

1) Kids up to 25 (after college?) covered automatically, mostly through Medicaide.

2) People earning less than $17,000 will get kid's coverage.

2.5) Tax credits to compensate suckers with high premiums.

3) Lower rates for small businesses, federal government picks up 70% of cost if they cover second two months under a program (nearly) identical to Congress.

4) Corporate tax deductions for those that play nice.

Am I missing a part here?

[w4rma]

7. Here is a summary of my understanding of the plan

The plan will cost an estimated, "$88.3 billion". This is paid for from some of the money saved by repealing Bush's tax cuts.

The Dean proposal expands Medicaid and CHIP to ages 25 and under. CHIP is expanded to adults earning up to "185% of the poverty level" (currently, $16,613).

For the "capitalist" half of the Dean plan: Folks with high health premium costs recived "a significant tax credit" to cushion the costs. The current "employer-based system" in use now will be modernized by upgrading it to the same healthcare coverage that "federal workers and members of Congress" have available to them.

Small buisnesses of less than 50 workers get lower rates than their larger competitors. Employers pick up the tab for 2 months in between jobs, but the costs of the COBRA premiums for those 2 months are subsidized, at 70%, by the federal government for employers. Corporations will receive "business tax deductions" as an incentive for supplying health care to their employees.

[DrFunkenstein]

8. Thanks!

That's a good Cliff's Notes version for people like me!

[w4rma]

9. Happy to oblige (n/t)

:)