Trying Out Almost-Universal State Health Care in Maryland
Maryland, "The Free State," is working hard to provide health care for all its residents. Lawmakers in the state outlined a $1.6 billion proposal last week that is designed to help the state's 760,000 residents, of whom 14% are without health insurance. Maryland may end up being the first state to pass such legislation and whether the initiative is successful or not, it will be an important milestone in the journey to improve the U.S. healthcare system.
Health Insurance for All Maryland Residents
What are lawmakers in Maryland suggesting for this widely inclusive health care proposal? According to Kaiser's Daily Reports, the legislation would build on a plan approved in 2007 by the legislature that expanded Medicaid eligibility and extended funding to small businesses to compensate for the cost of providing coverage. The current bill would provide an insurance plan for residents with premiums of about $250 per month, as well as sliding-scale funding for low-income individuals who do not qualify for Medicaid or Medicare. Residents who do not get insurance would pay an additional tax of as much as $1,800 annually, while low-income residents would be exempt from the penalty.
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Will The Insurance Proposal Actually Work?
If the initiative is successful, it could possibly save money but more importantly, it will provide all residents with affordable access to health care. If successful, it could serve as a model for the entire country's health care and health insurance system.
But is the insurance legislation realistic? Having a penalty fee for those who chose not to purchase insurance would make the health insurance industry much like the car insurance industry: if you own and operate a body within the Maryland state limits, you would be required to insure it. Critics worry that imposing a penalty for lack of insurance may take away the freedom of choice that supports the current health insurance system. Enforcing penalties on those who don't purchase insurance may also be difficult and costly to enforce.
The nation will be looking to Maryland to provide an initial testing ground for the idea of state-mandated, privately-purchased health insurance. The outcome will be a learning experience for all involved, and may end up providing a blueprint for the rest of the country.