OCAA – Obama Caucus in Ann Arbor obama.caucus@gmail.com
FAQ - HEALTH CARE REFORM
1. WHY HEALTH CARE REFORM?
• 45.7 million Americans don’t have any kind of health care
• those who do subsidize the uninsured when they go to a hospital for urgent care
• between 1996 and 2007 employees’ insurance bills rose 79 percent, while wages rose 10 percent
• in the same period, costs have risen nearly eight times faster than the average U.S. income
• health care is making American firms and companies non-competitive in the global economy, as is happening with the U.S. automotive sector
Data from a study conducted by the Robert Wood Johnson Foundation, at: http://www.rwjf.org/
2. WHAT KIND OF HEALTH CARE DO WE NEED?
• universal: everyone must have coverage
• portable: health care coverage must not depend on one’s job, or on being employed or unemployed
• unconditional: coverage cannot be denied on the basis of pre-existing conditions
• irrevocable: coverage cannot be taken away when a serious illness arises which the plan (supposedly) did not cover
• affordable: every individual or family must be able to get access to it
3. THE IDEAL SOLUTION
• a single payer system, where tax revenues are used by the government to reimburse doctors and hospitals that provide care
• doctors, nurses, and hospitals continue to be private providers
• patients choose their providers
• administrators and office workers employed by health insurance companies work for hospitals or doctors, or for the government agencies that manages providers’ reimbursements
4. THE ADVANTAGES OF A SINGLE PAYER SYSTEM
• it makes it easier to compare care providers, so that the best providers get the highest number of patients
• it brings down the cost of care by standardizing and reducing paperwork and setting examples of best practices at the lowest cost
• it brings down costs of medications, by negotiating with pharmaceutical companies
• it sets care and pay guidelines
• it does not eliminate private providers: people who can afford it can buy extra care or access to upgrade facilities
5. WHAT WE ARE FIGHTING FOR NOW
We must add a PUBLIC PLAN to existing private insurance companies, on the model of Medicare or the plan Members of Congress and U.S. Presidents have access to.
6. WHAT DOES A PUBLIC PLAN LOOK LIKE?
• the government is the single payer
• individuals and families that are not covered by their employers can purchase coverage
• businesses that cannot afford private plans can purchase coverage for their employees
• a public plan has all the advantages of a single-payer system
7. WHAT WILL HAPPEN IF WE ADD A PUBLIC PLAN?
• If Medicare levels are used, premiums would be about 30% less that they are for comparable private coverage. The monthly premium for a family would be about $761/month compared to $970 in the private market
• If eligibility is limited to small employers, individuals and the self-employed, public plan enrollment would reach 42.9 million people. The number of people in private plans would fall by 32 million.
• If the public plan is open to all employers, at Medicare payment levels 131.2 million people would enroll in the public plan. The number of people in private plans would fall by 119.1 million.
• Medicare-type premiums would be 30% less for hospitals services, and 20% less for physician payments than they are with private premiums because of the exceptional leverage the plan would have in negotiating with providers.
Data from a study conducted by the LewinGroup, at:
http://www.lewin.com/content/publications/LewinCostandCoverageImpactsofPublicPlan-Alternative%20DesignOptions.pdf
8. WHAT WILL HAPPEN TO FOR-PROFIT HEALTH INSURANCE PROVIDERS?
• if they can provide the same care at the same costs as the public plan does they will continue to sell their plans
• if they cannot do what the public plan does, over time individuals, families, and companies will move from the private plans to the public plan
• they will continue to provide coverage for people who have exceptional health problems or want coverage for non-essential treatments
9. WHO SUPPORTS THE PUBLIC PLAN?
As of today, 80 percent of the 44.8 million older and disabled Americans who have Medicare coverage—about 35.4 million people—choose the government-run public plan over the private Medicare plans.
Interviews show that 73 percent of voters want a public plan modeled on Medicare, including Democrats (77 percent), Independents (79 percent), and Republicans (63 percent).
• 61 percent think a public health insurance plan will be better able to control health care costs by using its purchasing power to drive competition. Only 25 percent believe a public health insurance plan will shift higher costs onto the privately insured.
• 61 percent agree that millions of people are already losing their coverage every year, and a choice of private or public health insurance plans will make sure that Americans always have quality, affordable care. Only 27 percent believe the claim that a public health insurance plan will cause millions of people to be dumped from their private coverage.
• 66 percent agree that a public health insurance plan will provide a choice with a standard, comprehensive package of benefits and a wide choice of doctors. Only 26 percent believe a public plan will force people into lower quality care including rationing and long waits.
Data from: Campaign for America’s Future, at:
http://www.ourfuture.org//blog-entry/2009031218/who-prefers-public-health-insurance-option
