AHIP Releases $300B Plan To Expand Health Insurance to All U.S. Children, Most Adults
America's Health Insurance Plans on Monday released a proposal that seeks to extend health insurance to all children within three years and to almost all adults within 10 years, the New York Times reports. About 46.6 million U.S. residents lacked health insurance in 2005, a 17% increase from 2000. Under the proposal:- Medicaid would cover all adults with annual incomes less than the federal poverty level, currently about $9,800 for an individual and $16,600 for a family of three.
- SCHIP would cover at least all children in families with annual incomes less than 200% of the poverty level; and
- The federal government would provide tax credits of $200 per child, with a maximum of $500 for per family, for families with annual incomes less than 300% of the poverty level that purchase health insurance for children (Pear, New York Times, 11/14).
The proposal also recommends the establishment of tax-free universal health accounts, to which individuals could contribute as much as $2,000 annually and families could contribute as much as $4,000 annually to pay premiums for any form of health insurance (Freking, AP/Houston Chronicle, 11/13). Under the proposal, the federal government would match contributions to the accounts by as much as $500 for individuals with annual incomes of about $30,000 and by as much as $2,000 for families with annual incomes of $60,000 (Lopes, Washington Times, 11/14).
Some Concerns
According to the Los Angeles Times, the proposal, which would cost an estimated $300 billion over 10 years, does not address certain "key elements that would determine whether it is even workable" (Alonso-Zaldivar, Los Angeles Times, 11/14). AHIP did not discuss a plan to finance the proposal, nor did it recommend budget reductions or tax increases, or propose ways to reduce health care costs (New York Times, 11/14). In addition, the proposal does not recommend a requirement that employers or individuals purchase health insurance and "fails to deal with the creation of purchasing pools to bargain down the cost of coverage or with reforms to curtail industry practices that exclude people in poor health," the Los Angeles Times reports (Los Angeles Times, 11/14).
Comments
AHIP President Karen Ignagni said, "We think covering the uninsured should be the nation's No.1 domestic priority." Diane Rowland, Kaiser Family Foundation executive vice president and executive director of the Commission on Medicaid and the Uninsured at the foundation, said, "This reinvigorates the discussion of how we can achieve universal health care in America." Ron Pollack, executive director of Families USA, said that the proposal indicates that "the industry is now prepared to move on a positive track" on health care reform (Graham, Chicago Tribune, 11/14). Paul Fronstin of the Employee Health Benefit Research Institute said, "Their thinking is to try to make health insurance more affordable, but that still isn't enough when the cost is going up at more than twice the rate of overall inflation" (Los Angeles Times, 11/14). David Merrit, a project director at the Center for Health Transformation, said, "The uninsured is one of those anchors that can take down the entire system," adding, "This is a bipartisan plan that will start a serious conversation in Congress, especially the Democrats" (Washington Times, 11/14). Grace-Marie Turner, president of the Galen Institute, said, "Conservatives will be able to support this. It has something for everyone" (New York Times, 11/14). American Medical Association officials in a statement said that the group "welcomed" the proposal (Chicago Tribune, 11/14). Sen. Max Baucus (D-Mont.), who likely will become chair of the Senate Finance Committee, said, "Curbing health care costs and reducing the number of uninsured Americans will require solutions from the private market and recognition of the critical role that public programs must continue to play in expanding coverage" (Armstrong, CQ HealthBeat, 11/13). Sen. Edward Kennedy (D-Mass.), who likely will become chair of the Senate Health, Education, Labor and Pensions Committee, added, "The fact that even the health insurance industry is talking reform shows a growing consensus that reform is really needed" (AP/Houston Chronicle, 11/13).
Broadcast Coverage
APM's "Marketplace" on Monday reported on the proposal. The segment includes comments from David Cutler, a health care economist at Harvard University; Ignagni; and Pollack (Palmer, "Marketplace," APM, 11/13).
A transcript and audio of the segment are available online.
In addition, APM's "Marketplace Morning Report" on Monday reported on the proposal. The segment includes comments from Rowland (Wicai, "Marketplace Morning Report," APM, 11/13).
A transcript and audio of the segment are available online.
A webcast of AHIP's announcement will be available online at 5 p.m. ET Tuesday on www.kaisernetwork.org.
