Dallas Morning News Examines Differences Between McCain, Obama Health Plans

The Dallas Morning News on Saturday examined how, although "Democratic health care proposals may have gotten more attention during the primaries," the plan proposed by presumptive Republican presidential nominee Sen. John McCain (Ariz.) "just might be more revolutionary."

Under his proposal, McCain would replace a tax break for employees who receive health insurance from employers with a refundable tax credit for families to purchase private coverage. According to the Morning News, the proposal seeks to "give those without company-provided health insurance the same tax advantages as those with coverage through work" and "encourage individuals to shop for less expensive insurance" to reduce costs.

By contrast, the plan proposed by presumptive Democratic presidential nominee Sen. Barack Obama (Ill.) would require most employers to offer health insurance to employees or pay into a federal fund to provide coverage. Obama's plan would also have private health plans and a new public plan compete in the health insurance market, with subsidies for lower-income residents.

Concerns About McCain Proposal
Critics of the McCain proposal have raised concerns that the "amount of the tax credit will not be enough to purchase comprehensive coverage," the Morning News reports. John Goodman, president of the National Center for Policy Analysis and a health care policy adviser to McCain, said that the campaign sought to make the amount of the tax credits less than the amount currently spent on employer-sponsored health insurance to encourage individuals and companies to purchase less expensive coverage. In an e-mail, Goodman wrote that the tax credits "would not subsidize bells and whistles (marriage counseling, acupuncture, etc.) as the current system does."

In addition, critics "question whether individuals -- especially those with chronic or pre-existing medical conditions -- would be able to find health plans they could afford." McCain has said that the proposal includes working with states to create a federally supported plan to help individuals who cannot obtain private coverage because of pre-existing medical conditions or no previous group coverage.

Meanwhile, some employers have raised concerns that the proposal would "encourage young and healthy workers to forgo company coverage, purchasing insurance on their own rather than paying income taxes on the benefit," a trend that "would leave employers with only the costly sick workers to insure" and "could eventually lead to the death of company-provided health plans," according to the Morning News. Andrew Webber, president and CEO of the National Business Coalition on Health, said, "If health benefits became taxable income, yes, I do think that more people would opt out" (Roberson, Dallas Morning News, 8/16).

Nelson Promotes Obama Health Care Proposal
Sen. Ben Nelson (D-Neb.) on Thursday at a fair in Iowa promoted the health care plan proposed by Obama, the Des Moines Register reports. According to Nelson, the proposal would have private health plans and a new public plan compete in the health insurance market and implement measures to reduce health care costs.

In addition, he said that the McCain proposal would increase health care costs because the plan would shift more residents into individual health insurance, which often costs more than group coverage. Nelson said, "You have to really know what it is you're doing because you can make matters worse at times when you think you're making them better," adding, "That's why I think Senator Obama has thought this through" (Clayworth, Des Moines Register, 8/15).

Opinion Pieces
The Washington Times on Sunday published two opinion pieces about proposals from the McCain and Obama plans to reduce the federal budget deficit that include health care provisions. Summaries appear below.

• Jason Furman, Washington Times: One of the "biggest fiscal challenges America will face will emerge not during the next few years but over the next few decades" is spending on entitlement programs, Furman, economic policy director for the Obama campaign, writes in a Times opinion piece. According to Furman, the "most pressing threat to our economic future ... is not demography but the rapid rise in national health spending." He writes, "Singling out Medicare and Medicaid for cuts and leaving seniors and our most vulnerable families to fend for themselves simply is not the answer." As a result, Furman writes, "Obama plans to implement dramatic reforms to lower the cost of health care in the public and private sectors, including investments in health information technology to save administrative costs, and improve insurance market competition and preventative care to help people avoid serious -- and costly -- illnesses" (Furman, Washington Times, 8/17).
  
  
• Douglas Holtz-Eakin, Washington Times: A proposal by McCain to balance the budget by 2013 is "built on three principles": an "economic surge," comprehensive spending limits and bipartisan budget efforts, Holtz-Eakin, a senior policy adviser to McCain, writes in a Times opinion piece. He adds, "McCain will enforce the spending restraint to balance the budget and keep it balanced," but the "budget will remain in balance over the long-term only with crucial bipartisan efforts to reform and protect Social Security and Medicare for future retirees" (Holtz-Eakin, Washington Times, 8/17).