Top Economist Says McCain’s Health Plan Better for More Americans
In a Wall Street Journal (WSJ) opinion piece, one of the nation’s top economists says more Americans would benefit from the health plan presented by presidential hopeful, John McCain, than that of his opponent, Barack Obama. Robert Carroll, once a deputy assistant secretary for tax analysis at the US Treasury, bases his opinion on the refundable tax credit, proposed by McCain, compared to the current system, which provides a tax exclusion to help offset the cost of employer-based healthcare insurance coverage.
Carroll, now serving as vice president for economic policy at the Tax Foundation and as executive-in-residence for the School of Public Affairs for American University, expects the McCain plan to make insurance a possibility for as many as 15 million to 21 million currently uninsured Americans, although not all this new coverage will be employer based.
As an example of the McCain plan, a family of four pays $14,000 per year for healthcare insurance. Regardless of the family’s income, it would get a $5,000 tax credit to help offset the cost of the policy.
Under the current plan, that same family is allowed a tax exclusion to offset the cost of the healthcare policy but the dollar amount of the exclusion fluctuates from family to family according to household income. Under this plan, families earning about $25,000 and those earning $110,000 and up get the largest tax exclusions, roughly $4,250.
Under the McCain plan, the American approach to health care is expected to shift, with insurance coverage providing mostly for catastrophic care while the individual pays for routine medical exams and procedures. Carroll says the current tax policy is biased unfairly against Americans wanting more comprehensive coverage for catastrophic illnesses but McCain’s plan will erase that tax bias. He says the McCain plan will result in more Americans choosing insurance coverage that offers more services for catastrophic illnesses and with higher deductibles than the more generalized policies popular today with low deductibles that provide coverage for predictable medical costs.
Carroll feels McCain’s plan is important for keeping down the costs of the Medicare, Medicaid, and Social Security programs, which consume about 20% of today’s federal expenditures but which are expected to grow to 40% by 2040. Carroll expects the tax credit from McCain’s plan to slow the growth of the Medicare and Medicaid plans more so than the demographic-driven Social Security program but McCain’s proposed tax credit, as well as other measures of the McCain plan, are expected to generate broad benefits well into the future.
Source: WSJ
While I can’t verify that my family of four pays an average of 14K for medical insurance each year, I DO know that the deductible for my family is $750 AND I’m not covered for numerous other things. I pay ON AVERAGE, about $250 per month out-of-pocket for deductible, doctor’s visits, lab fees, tests, x-rays, and medications. In addition to the cost for medical insurance each year, I am paying at least another $3000 each year. I HAVE insurance and I pay this above and beyond the cost of the plan. I honestly can’t imagine how much I will have to pay if my insurance plan covers only catastrophic emergency costs.
This article doesn’t compare the McCain healthplan to Obama’s healthplan. It compares the McCain healthplan to the current one. So, why say it in the headline if you don’t back up the statement in the story?
Since Murdoch’s buyout of WSJ, opinion pieces have been of zero value. The title of this piece should be “Top Ideologue Says McCain’s Health Plan Better…” instead of “Top Economist …”
You know what I hate the most despicable politic tactics the type that buys specialists expertise and make them say whatever is politically suitable.
This is a false statement as many have applause Obama ‘s plan for being well advanced over his opponent ‘s.
Again and again day after day time after time John McCain chose
to bash his opponent even when it comes to health care he lies with no hesitation to the American people.
As a long time Republican I am baffled by the absolute lack of ethic and morals John McCain has shown particularly during those past last weeks.
I am an old fashion guy I like a good fight but not below the belt especially when its about moving forward in health care.
John McCain you are wrong …..
Yeah…the McCain plan also makes no provisions for people with pre-existing “catastrophic” (chronic) illnesses, meaning that insurance companies will not be forced to cover them, meaning that there will be hundreds of thousands of individuals with illnesses like cancer, Multiple Sclerosis, ALS, Huntington’s etc. who are *already sick NOW* and who can have their coverage taken away as a direct result of McCain’s plan. I fail to see how this “helps people.” My medication (for MS) would cost me $20,000 per year out-of-pocket, assuming I were unable to get health insurance—-because McCain won’t require anyone to cover me, given that I have a “pre-existing condition.” I only make $25,000 a year. So tell me, under McCain’s plan, exactly how some $4,000 credit is supposed to help me if a.) insurance companies are allowed to refuse to cover me anyway and b.) my medication costs a lot more than that out-of-pocket. And I am not even a fan of Obama (wanted Hillary).
To all of you who are looking for the messiah to cover your health care expenses from craddle to grave – he can’t and he won’t. It’s not that he is a mean or ignorant guy. It is pure basic math.
I clicked on the link “Tax Foundation” that the author of the article is supposed to represent as vice president. I was sent to a screen full of “foundations”. I then put in the search for “tax foundation” and got NOTHING.
Are you sure this guy is for real?
What exactly is a “routine procedure?” A CAT scan ($1200)? An MRI ($2500)? Diagnostic lab work ($500-$1000)? Emergency room treatment for a car accident? ($1000 to $5000)? McCains tax break is a joke and does nothing to fix a system that has gone horribly awry in the past 10 years.
Under McCain’s plan, already ill and low-income families will become even more ill as access to affordable care is placed even farther out of reach.
Well, the title of this article does not seem to match the details so I am confused. The title suggests that a “Top Economist” says that the McCain plan is better for more Americans but then the article presents a bunch a reasons as to why the plan is bad. For example, the article says that more people would shift to catastrophic coverage only. Catastrophic coverage is not a health plan. There is nothing in catastrophic coverage that keeps a person health. All catastrophic coverage does is pay when things have already gone too far.
It also says there would be higher deductables. Higher deductables only discourage people from getting health care. People will wait until it is too late to get care. Again, this is bad. Medical costs go up when people wait until it is too late.
The only thing this “Top Economist” does say that could be interpretted as helpful is that is that McCain’s plan controls the governments expense with health care because it limits it to $5000 per family, thus our tax burden should stay lower.
McCain’s plan is not a health plan.
Ridiculous My health care plan costs my employer about 12,000 per year for a single person A family is about 18,000 per year. Including my copays I spend roughly about 2500 per year. How would I be better off? You can’t touch a health insurance plan for what McCain Suggests. Also IT IS A TAX CREDIT. MCCAIN IS NOT GIVING YOU $5,000 toward a health care plan. YOu have tro buy it with your money
AS AMerican struggle more, more will forego medical insurance to put gas in their cars, pay higher utilities, make car payments, house payments and try to pay down credit card debt. Inflation and a recession will drive up the cost of groceries, clothing etc. Folks will be taxed on the monies that will later be offered as a tax credit. This is just plain stupidity. And we have not even touched the idea that some Americans with pre existing conditions will not be able to buy
health plans anyway…WAKE UP AMERICAN HOW MUCH did MCGIVE TO THE RICH AND THE CORPORATIONS Pay for this opinion!!!!!
Yes, compared to the current system but also compared to Obama’s. “..than than his opponnet..”
…for more Americans means not the whole 300 million people but more Americans. Could be for more middle classes or below, etc..
“In a Wall Street Journal (WSJ) opinion piece, one of the nation’s top economists says more Americans would benefit from the health plan presented by presidential hopeful, John McCain, than that of his opponent, Barack Obama. “
I surely like McCain’s Health Plans. Obama’s Health Plan is too Communist.
we spend about $6k/year for individual health care insurance and we have HSA. It works better then employer sponsored health plan. I purchase the plan that fits my family. I do not have to wait from 30 days to 12 month for employee’s benefits to start, I am not afraid to change my job. I can switch to another plan or change the insurance company of my choice.
McCain health plan will work even better for our family. $5k tax credit will equivalent of roughly $20K of additional income ( we are in low tax bracket). It will live some cash in my pocket every year.
First of all, opinion pieces in the Wall Street Journal might as well be written by the RNC and Rupert Murdock. As to the points of the article, I pay $5400 and my employer pays the same. This covers my wife, child, and self. If catastrophic care is 25%-50% cheaper then my health care cost could be between $5400 and $8100 which I would pay myself. Under the McCain plan, I get $5000 back, but I loose the benefit of tax deductibility on $5400 of my salary and the $5400 of employer help in paying for my health insurance and full health insurance coverage. This would also mean that I pay the full amount of routine medical treatment, not the 30% of that amount that the insurance company actually pays. What a deal!
People need to calculate depending on their tax bracket how much $5K TAX CREDIT is equivalent of their additional income. People who are in lower tax bracket will benefits the most.
I still think that most do not understand the benefits of $5K TAX CREDIT.
Anyone who thinks the govt will give them a $5k REFUNDABLE tax credit needs to come see me I have a bridge to sell them as well. It’s not gonna happen. How many people that can’t afford health coverage will go get it because they get this credit? Probably not very many.
41 million people pay medicare,3,833,500,000/mo,for insurance???
it should be used to pay medical bills,
put it in banks,with instructions to pay certified doctors, clinics, and hospitals,via on line banking,I use it,, to pay all my bills,,and the service is free, and the bank pays interest on my balance,,, PAYING INSURANCE COMPANIES IS COUNTER PRODUCTIVE
What worries me about this plan is it sounds like the preventive care and recommended tests and procedures would not be covered, in my case a colonoscopy. If these costs are left solely to the individual, these things will not get done and I suspect you will have a rise in catastrophic illnesses.
John McCains plan is going to result in a lot people going broke in order to come up with the money to pay for his plan. At $14,000. – then subtract the $5000. credit, im still in the hole for $9,000. Do you guys have any idea where folks who are already in the hole are going to come up with that kind of money, especialy working class folks. Having to take a loan to pay for my families healthcare is insane, now i have to pay interest on the loan and what about next year when the primiums go up because the healthcare companies costs go up and this will happen every year. Just imagine what it will cost when my kids are teenagers ten years from now. John McCains plan will make americans poorer so now there is no money for other things like trying to save for my kids college education. Most americans live pay check to pay check and with the plan costing $1160.00 a month most folks won’t be able to afford this and insurance companies are going to have less customers thus lowering the insurance companies profits. You saw what happend when gas prices went through the roof, gas consumption went way down that will happen with this plan as well. Americans will sacrifice their health if they can’t afford it, then they will show up at emergency rooms increasing costs for all and clogging up emergency rooms all over the country. Your Economist dosen’t seem to understand that in a country of 300 million people with an industrial economy there needs to benevilance, charity and dececy in a capitalist system other wise people are going to advocate for more help from their goverment exactly the situation you don’t want.
NTC
McCain’s plan is a radical change from the current system. In essence, it puts faith in deregulation and the free market as the solution to our health care problems. Unfortunately recent events have shown that simplistic ideology hasn’t worked so well.
A more detailed analysis indicates that under McCain’s plan it’s likely that more people will become uninsured over time, as the value of the tax cut relative to health care costs decreases over time.
Details here: http://content.healthaffairs.org/cgi/content/full/hlthaff.27.6.w472/DC1
[...] More People Posted on October 30, 2008 by wasteofmyoxygen According to a top economist, 15-21 million currently uninsured Americans will insurance will be able to get insurance under McCai…. That is about half of the current uninsured [...]
Something I think the author of the WSJ seems to have avoided, but then tripped himself up on, is that the reason why Medicare, Medicaid and Social Security benefits for healthcare are such a burden, is because the private health insurance industry either doesn’t want to know about the people who have to refer themselves to federal funding, or cannot afford any private healthcare plan. Thereby the Obama plan intended to enforce employers to involve their employees in healthcare plans will enable many more people to get healthcare, and come off the federal budget’s books.
health plans should be given priority because it is very important :
health plans may be expensive but it is really very necessary to get one for yourself ‘*.