America Health Insurance Plan's Proposal for Health Coverage Reforms
With 46 million uninsured Americans and with health care costs increasing at a faster rate than inflation, there is a general consensus that the American health care system needs an overhaul. This overhaul starts with the health insurance system, and it is in this context that the health insurance industry has brought forth a proposed overhaul.
Standardizing Health Premiums
The proposal being put forth by the health insurance trade group, America's Health Insurance Plans, will dramatically change how health insurance is offered. This proposal involves a reversal in the established practice of setting insurance premiums based on an individual's health and any pre-existing medical condition. Instead, everyone will be approved for coverage and the premium will be charged independent of any such conditions. In exchange for this the industry is calling for a system that mandates that everyone carry health insurance.
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Establishing Health Insurance Plans for All
Such a system is not without cost. If everyone is required to carry insurance then a mechanism must be put in place to help individuals who cannot afford health insurance. The insurance industry wants such help to be offered via tax incentives and subsidized insurance so that everyone will get their health insurance through a private insurance company.
The industry association is also looking to have a system where no new government health insurance plan is setup as this will funnel up to 100 million people away from private insurance plans, thanks to the government's ability to get lower rates out of health service providers.
The Price of Universal Health Care Coverage
Given this backdrop, a source of funding needs to be found for such tax breaks and subsidies. In Obama's 2010 budget he has allocated $634 billion for just such a purpose. The funding for this portion of his budget is expected to come from increased taxes on couples earning over $250,000 and through a reduction in Medicare payments.
These proposed changes will most certainly change the way health care works in America and so you should monitor these changes for any potential impacts they may have on you. With such a fundamental shift in the way health insurance is administered everyone will be affected.
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