Is ‘Obamacare’ the Only Option?

Alternative ideas for health care reform abound; why no coverage of them?

We are hearing a lot about the Democrats’ health care reform plan(s), which consists of a full-blown government takeover of the industry, but what about other proposals? Other than bromides like “the party of no” and “Republicans have no solutions”, you don’t hear anything about the suggestions made by Republicans and non-partisan think tanks. Is Obamacare really the only game in town? Or is this just another example of the mainstream media being in the tank for the administration? I’ve been doing some research and was surprised to learn there are other proposals out there.

One proposal comes from the Republican Study Committee, the Empowering Patients First Act, HR 3400. Let’s take a look:

Pillar #1: Access to Coverage for All Americans
Makes the purchase of health care financially feasible for all – Extends the income tax deduction above the line) on health care premiums to those who purchase coverage in the non-group / individual  market. And, there is an advanceable, refundable tax credit (on a sliding scale) for low-income  individuals to purchase coverage in the non-group / individual market.

Covers pre-existing conditions – Grants states incentives to establish high-risk / reinsurance pools. Federal block grants for qualified pools are expanded.

Protects employer-sponsored insurance – Individuals can be automatically enrolled in an employer-sponsored plan. Small businesses are given tax incentives for adoption of auto-enrollment.

Shines sunlight on health plans – Establishes health plan and provider portals in each state, and these portals act to supply greater information, rather than acting as a purchasing mechanism.

Pillar #2: Coverage Is Truly Owned by the Patient
Grants greater choice and portability – Gives patients the power to own and control their own health care coverage by allowing for a defined contribution in employer-sponsored plans. This also gives employers more flexibility in the benefits offered.

Expands the individual market – Creates pooling mechanisms, such as association health plans and individual membership accounts.

Individuals are also allowed to shop for health insurance across state lines.

Reforms the safety net – Medicaid and SCHIP beneficiaries are given the option of a voucher to purchase private insurance. And states must cover 90% of those below 200% of the federal poverty level before they can expand eligibility levels under Medicaid and SCHIP.

Pillar #3: Improve the Health Care Delivery Structure
Institutes doctor-led quality measures – Nothing suggested by the Council for Comparative Effectiveness Research can be finalized unless done in consultation with and approved by medical specialty societies. It also establishes performance-based quality measures endorsed by the Physician Consortium for Performance Improvement (PCPI) and physician specialty organizations.

Reimburses physicians to ensure continuity of care – Rebases the Sustainable Growth Rate (SGR) and establishes two separate conversion factors (baskets) for primary care and all other services.

Promotes healthier lifestyles – Allows for employers to offer discounts for healthy habits through wellness and prevention programs.

Pillar #4: Rein in Out-of-Control Costs.
Reforms the medical liability system – Establishes administrative health care tribunals, also known as health courts, in each state, and adds affirmative defense through provider-established best practice measures. It also encourages the speedy resolution of claims and caps non-economic damages.

Pays for the plan – The cost of the plan is completely offset through decreasing defensive medicine, savings from health care efficiencies (reduce DSH payments), ferreting out waste, fraud, and abuse, plus an annual one-percent non-defense discretionary spending step down.

Now let’s do a side by side comparison on some of the issues:

PATIENTS FIRST – CHOICE AND PORTABILITY
RSC Plan (H.R. 3400)
Offers new innovate solutions for individuals to shop across the state lines and make insurance companies responsive to patients.  And employers can offer a “defined contribution” to individuals to purchase a plan which they can keep if they change jobs.

House Democrat Plan (H.R. 3200)
Bless individuals to “choose” from a host of plans approved by the Health Benefits Advisory Committee, a new government bureaucracy (and that’s if choices remain after the new government-run plan gets to “compete.”.

IF YOU LIKE WHAT YOU HAVE, YOU CAN KEEP IT
RSC Plan (H.R. 3400)
Grants power to individuals and their families with no fear that existing coverage will be deemed unacceptable by Washington.

House Democrat Plan (H.R. 3200)
Outlaws private insurance on the individual market and requires employers to change their current health care plans if they do not comply with new stringent government requirements.

PRESERVE THE EMPLOYER – BASED SYSTEM
RSC Plan (H.R. 3400)
Keeps intact the current pre-tax benefits while permitting employers to offer discounts for healthy habits through wellness and prevention programs.  And tax incentives are granted for auto-enrollment programs.

House Democrat  Plan (H.R. 3200)
Implements a host of new government mandates on employer-sponsored coverage, increasing the costs for businesses and employees while taking away innovation and flexibility.  And don’t forget more than 80 million Americans would lose their coverage.

MEDICAL LIABILITY REFORM AND REINING IN COSTS
RSC Plan (H.R. 3400)
Reduces frivolous lawsuits by establishing health courts in each state and adding affirmative defense through best practices set by physicians, not trial lawyers chasing a buck in lottery courts.

House Democrat  Plan (H.R. 3200)
Nothing.  Estimates peg the cost of defensive medicine between $70 billion to $124 billion per year, or around 10% of all health care dollars.  If there were less interest in blaming “greedy doctors” and protecting trial lawyers,  they’d actually address the problem.

LOWER TAXES
RSC Plan (H.R. 3400)
Gives Americans back their own hard-earned tax dollars, through credits and deductions, to purchase the quality health insurance of their choice.  It makes the purchase of health care financially feasible for all Americans.

House Democrat  Plan (H.R. 3200)
Taxes business (pay or play) the wealthy (surtax) and the middle class – you know, those making less than $250,000 a year (individual mandate).

LIMITATIONS ON ABORTIONS
RSC Plan (H.R. 3400)
No funds may be used to pay for an abortion or cover any part of the costs of  any health plan which includes coverage of abortions.

House Democrat Plan (H.R. 3200)
Permits taxpayer dollars to be spent on abortions and does not prevent the Health Benefits Advisory Committee from mandating coverage of abortions.

~~~~~~~~~~~~~~~~~~~~

Another alternative proposal written by John Mackey, co-founder and CEO of Whole Foods Market and can be found on his blog http://www2.wholefoodsmarket.com/blogs/jmackey/.

John Mackey writes: “While we clearly need health care reform, the last thing our country needs  is a massive new health care entitlement that will create hundreds of billions of dollars of new  unfunded deficits and moves us much closer to a complete governmental takeover of our health care  system.  Instead, we should be trying to achieve reforms by moving in the exact opposite direction-toward less governmental control and more individual  empowerment.”

The following are the eight reforms proposed by Mr. Mackey:

1. Remove the legal obstacles that slow the creation of high-deductible health insurance plans
and health savings accounts.

2. Equalize the tax laws so that employer-provided health insurance and individually owned
health insurance have the same tax benefits.

3. Repeal all state laws which prevent insurance companies from copeting across state lines.

4. Repeal government mandates regarding what insurance companies must cover.

5. Enact tort reform to end the ruinous lawsuits that force doctors to pay insurances costs of
hundreds of dollars per year.

6. Make costs transparent so that consumers understand what health-care treatments cost.

7. Enact Medicare reform: we need to face up to the actuarial fact that Medicare is heading
towards bankruptcy and move towards greater patient empowerment and responsibility.

8. Revise tax forms to make it easier for individuals to make a voluntary, tax-deduction donation
to help the millions of people who have no insurance and aren’t coverd by Medicare, Medicaid or
the State Children’s Insurance Program.

If we are going to reform health care, we should take the time to explore and discuss all of the options. Unfortunately, with the Obama administration constantly throwing out arbitrary deadlines, this probably won’t happen.