Health Policy Matters Newsletter
Sen. Barack Obama this week announced a
plan designed to help businesses afford health insurance, but the ideas would perpetuate today's problems and add new bureaucracy in the process. Small businesses would get refundable tax credits to offset 50% of the amount they pay for health insurance for their workers and have the government take over a portion of the catastrophic costs of high-cost employees. What's wrong with that? Several things.
What's New
Nearly 98,000 Iowans with health insurance that's compatible with a health savings account could get slapped with new paperwork requirements from Congress. Created in 2004, HSAs are a proven way to make insurance more affordable and to give people more control over their health spending. Today, more than 6 million Americans have these plans, and thanks to HSAs, 1.6 million Americans have left the ranks of the uninsured.
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Bashing the American health care system has become a cottage industry. On the big screen, we've seen John Q and Sicko. At the bookstore, highly touted best-sellers lambasting the system seem to hit the shelves every month. On the opinion pages and on the cable news networks, pundits declare that the American system is in crisis and an embarrassment.
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Nearly six in ten U.S. doctors say they now favor legislation to establish national health insurance, according to a new survey, but doctors may be a bit less enthusiastic if they knew more about where such a system would take us. Touted as the “largest survey ever conducted among doctors on the issue of health care financing reform,” the results were published in the prestigious Annals of Internal Medicine and have since garnered a great deal of media attention.
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Grace-Marie Turner discussed the Massachusetts health reform plan today at a briefing sponsored by the Alliance for Health Reform and the Kaiser Family Foundation.
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The Times' lead article, "Even the Insured Feel the Strain of Health Costs" (May 4), perpetuates the myth that employers are largely paying for their workers' health insurance. This benefit is actually part of a worker's overall compensation package, but if the employer writes the check, it doesn't show up as taxable income to the employee (courtesy of Section 106 of the Internal Revenue Code).
The Galen Institute, Inc., is a not-for-profit, free-market research organization devoted exclusively to health policy, promoting a more informed public debate over individual freedom, consumer choice, competition and diversity in the health sector.