Would McCain's Healthcare Plan be Better!

Falla39 · #1 10-27-2008, 03:50 PM

I received this link in an e-mail today.

http://online.wsj.com/article_email/...html#printMode

For information and discussion only.

Falla39

Pressing-On · #2 10-27-2008, 03:59 PM

From what I understand, after studying the issue at www.taxfoundation.org, the success of the policy depends critically on whether the benefits from improved efficiency—reducing the linkage between the tax subsidy and health care spending—exceed the effect of increasing the overall subsidy for health care. This potential shortcoming could be remedied by also eliminating the current payroll tax exclusion for employer-based health insurance premiums. This change would also make the overall policy roughly deficit-neutral over ten years.

Pressing-On · #3 10-27-2008, 04:33 PM

Quote:

Originally Posted by Falla39

I received this link in an e-mail today.

http://online.wsj.com/article_email/...html#printMode

For information and discussion only.

Falla39

Sister Falla,
I think this part, in your article, is good. I think it's one of the very important elements of the plan.

"Will the insurance that is purchased be a generous plan with first dollar coverage or low deductibles? It is much more likely to be a plan with higher deductibles that is more focused on providing true insurance against catastrophic losses rather than a more generous plan that includes a lot of prepayment for routine and predictable medical expenses. But this is precisely one of the objectives of the policy: to reduce the current tax bias that encourages people to funnel routine health expenses through insurance policies.

Finally, the credit has important implications for the nation's finances down the road. This is perhaps the most important aspect of the proposal.

There is an enormous unfunded liability associated with the major entitlement programs of Social Security, Medicare and Medicaid. If left unchecked, the growth in these programs will nearly double the size of the federal government by 2040, consuming roughly 40% of the nation's output rather than the 20% today. While the growth in Social Security is largely the result of demographics, the growth in Medicare and Medicaid is also driven by the rapid growth in health-care spending. This is where a proposal like Sen. McCain's can be so important.

The elimination of the income-tax exclusion should reduce private health-care spending; to the extent this reduces the cost of health care, it should also put downward pressure on the growth of Medicare and Medicaid costs. Thus, by removing the tax bias for more generous health coverage, the McCain health credit also has the potential to provide important dividends to the entitlement problem down the road."

Falla39 · #4 10-27-2008, 04:43 PM

Quote:

Originally Posted by Pressing-On

Sister Falla,
I think this part, in your article, is good. I think it's one of the very important elements of the plan.

"Will the insurance that is purchased be a generous plan with first dollar coverage or low deductibles? It is much more likely to be a plan with higher deductibles that is more focused on providing true insurance against catastrophic losses rather than a more generous plan that includes a lot of prepayment for routine and predictable medical expenses. But this is precisely one of the objectives of the policy: to reduce the current tax bias that encourages people to funnel routine health expenses through insurance policies.

Finally, the credit has important implications for the nation's finances down the road. This is perhaps the most important aspect of the proposal.

There is an enormous unfunded liability associated with the major entitlement programs of Social Security, Medicare and Medicaid. If left unchecked, the growth in these programs will nearly double the size of the federal government by 2040, consuming roughly 40% of the nation's output rather than the 20% today. While the growth in Social Security is largely the result of demographics, the growth in Medicare and Medicaid is also driven by the rapid growth in health-care spending. This is where a proposal like Sen. McCain's can be so important.

The elimination of the income-tax exclusion should reduce private health-care spending; to the extent this reduces the cost of health care, it should also put downward pressure on the growth of Medicare and Medicaid costs. Thus, by removing the tax bias for more generous health coverage, the McCain health credit also has the potential to provide important dividends to the entitlement problem down the road."

Sis. Pressing-On,

Thank you for this information, To be honest with you, I am not well-
versed in all this. That is why I posted it after someone sent it to me.
I felt a lot could be gleaned by the responses on here. Thank you again
for your comments!

Hugs,

Falla39

Pressing-On · #5 10-27-2008, 04:45 PM

Quote:

Originally Posted by Falla39

Sis. Pressing-On,

Thank you for this information, To be honest with you, I am not well-
versed in all this. That is why I posted it after someone sent it to me.
I felt a lot could be gleaned by the responses on here. Thank you again
for your comments!

Hugs,

Falla39

Actually, Sister Falla, the only way I get versed on anything is by repetition. I have to read the same information over and over and compare sources. Finally, a light bulb goes off and you get it! LOL!

I did love the article you posted. Thanks so much for that!!!!

Ron · #6 10-27-2008, 04:45 PM

*Peeks In*

"Women discussing politics? Shouldn't they be doing the laundry & cooking dinner?"

Slams door & thanks God there are guards at the border!

Ron · #7 10-27-2008, 04:46 PM

Quote:

Originally Posted by Pressing-On

Actually, Sister Falla, the only way I get versed on anything is by repetition. I have to read the same information over and over and compare sources. Finally, a light bulb goes off and you get it! LOL!

I did love the article you posted. Thanks so much for that!!!!

Most females are like that!