Obama Health Care Plan
Posted by benarmstrong on 1/18/2009 2:07:09 PM.
This policy was first proposed by Obama for President.
Level of Government: National
Status: Proposed

Abstract
Background:
During his victorious 2008 presidential campaign, Barack Obama set forth a health care framework for America as part of his policy platform.

Purpose:
The Obama Plan seeks to 1) Create more health care options for the uninsured in order to increase access to health care, 2) Reduce health care costs and 3) Increase the quality of public health.

Plans:
Universal Access to Health Care
The Obama Plan maintains and expands upon the current health care options available to Americans. Those who are content with their current health care will not have to change plans, though they might incur a cost reduction. For the uninsured and those unsatisfied with their current care, the Obama Plan seeks to increase access and options. It “guarantees access” for those with pre-existing conditions to health care plans with “comprehensive benefits at fair and stable premiums.” 

The Obama Plan also creates a National Health Insurance Exchange (NHIE) in order to simplify the process of obtaining quality, affordable health care options. The Obama Plan will offer tax credits for low- and middle-income individuals who are not eligible for subsidies, but still cannot afford private health care. It will also offer a Small Business Health Tax Credit that provides premium relief for those small businesses that offer health care to their employees. An additional payroll tax will be placed on large employers that do not adequately provide health care for their employees. The Obama Plan will also mandate that all children have health insurance. It expands the eligibility for Medicaid and the State Children’s Health Insurance Program (SCHIP) and remain open to further innovation in state health care plans.

Lower Costs and Increase Quality
The Obama Plan will lower costs by promoting the digitization of health care records, preventive care, and accountability and competitiveness among health care providers. The Obama Plan will invest $10 Billion per year for five years in order to computerize health records and pursue other technological advances to make the health care system more efficient and less costly. The Plan will also require that certain health care plans implement programs that work to prevent future chronic diseases and manage current conditions through coordinated care. It will provide national support for local, school, and employer-based programs to prevent chronic conditions and improve public health.

In order to increase quality and market efficiency, the Obama plan requires that hospitals provide public reports on the cost and quality of their care. Research and dissemination of health care best practices is also suggested. The Plan will also mandate health care providers in uncompetitive markets to spend a portion of the premiums that they receive on patient care. Other measures include reducing the cost burden of Medicare Advantage (Medicare’s private alternative), increasing access to generic and safe foreign drugs, and allowing Medicare to negotiate with drug companies for lower prices. The Plan will seek to reimburse employers for part of the expense of paying for catastrophic injuries in order to keep ultimate health care costs in check.

Resources:
The Obama Plan predicts that making the health care system more efficient will reduce national health care costs by $50 to $100 Billion per year, offsetting some of the proposed increases in health care spending. Estimates of the plan’s ultimate cost vary, but the authors claim that such costs can be covered by rolling back the George W. Bush administration’s tax cuts.


Policy Details

The Obama Plan does not require that all Americans obtain health insurance.  It does require that all children have health care coverage.  It seeks to make health insurance accessible enough so that everyone who wants to be covered can be.

The Obama plan does not outline direct mechanisms to reduce costs by pooling risk.  However, it does require insurance companies to cover risky patients at “fair and stable premiums.”  The proposed National Health Insurance Exchange, too, would require insurers to offer policies to citizens priced irrespective of health status.  The plan also incentivizes an increase in employer-based coverage, which is likely to increase group insurance markets and effectively pool risk.

The Obama Plan could allow for the importation of prescription drugs that meet health standards from other “developed countries.”

The Obama Plan creates a National Health Insurance Exchange (NHIE) in order to increase the transparency of available health care options.  The NHIE would be a regulated market for individuals and small businesses to purchase health care plans that meet specific criteria for quality, comprehensiveness and portability.  The NHIE will feature public as well as private options.  Purchasing through the NHIE is meant to be simple, easy and flexible.

The Obama Plan’s National Health Insurance Exchange requires all plans to cover preventive care.  It seeks, in order to reduce long-term health care expenditures, to invest in preventive and primary care.  Much of the plans focus on primary care will be directed through investment at the community care level.

The Obama plan would increase funding for community-based health programs.  It would also promote school-based health and wellness programs.

The Obama does not propose direct measures to change Medicaid eligibility.  However, it does pledge to provide universal access to medical care for children.  It also guarantees access to affordable health care subsidies for all individuals who cannot afford private health insurance.


Related Links
Health Care Blog Analysis : This article offers a review of the main elements of Obama's health plan and the major critiques. It asks if Obama's plan will actually fulfill its promises and compares it to more conservative alternatives.
Health Care Issues Overview: This article reviews the major modern issues in health care, covering the chief questions that any health care proposal must answer.
Obama Plan Full Text: Here is the Obama campaign's platform on healthcare policy. Their plan is ultimately more detailed than this brief outline; however, this is the most direct and detailed statement in writing. The rest of the plan has been developed and expanded through conversations with experts and journalists who have reported on the plan's nuances.

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