On Monday Senator Baucus (D-MT) Chairman of the Senate Finance Committee quietly released to other senators his key points for healthcare reform. Many points of this plan come from bi-partisan negotiations amongst the “gang of six” legislators (3 republicans and 3 democrats negotiating the Senate Finance Committees version of healthcare reform.
The total cost of the Senators plan is $900 billion over ten years which is $100 billion less than the current house versions.
Key Features of the Plan
- No Public insurance option. This was anticipated the Baucus plan relies on non-profit health insurance cooperatives to compete with private, for-profit, insurance companies.
- Mandated Health Coverage. Almost all Americans will be required to carry health insurance.
- Tax credits to lower and middle income Americans. The plan is to use tax credits as the method of subsidizing people who will now be required to purchase health insurance but unable to afford the full cost.
- Increased federal support of Medicaid. More people will be added to the Medicaid rolls by expanding the program to citizens and legal immigrants to those who earn less than 133% of the current federal poverty level.
- Healthcare insurance exchanges. The exchanges would provide information allowing consumers to better make decisions on policies and compare prices between plans.
- Prevents Insurance Companies from discriminating against individuals based on their health or demographic profile, and from capping coverage
- Limits “out of pocket expenses” for health care to $6,000 per individual, and $12,000 per family.
- No denial of coverage for pre-existing health conditions. This is only possible if insurance is required for everyone.
- Eliminates expense cap on healthcare coverage, often insurance companies have a lifetime “Cap” on the total amount they will spend on a patient, the Baucus Plan eliminates that cap.
- No dropping insurance coverage once a policy holder becomes ill.
- Coverage of wellness and prevention programs becomes the focus of health plans with greater coverage for those programs
Paying for the plan includes
- New tax on insurance companies. Reform would be financed by a combination of a new tax on insurance companies who offer high end insurance plans and a fee based on market share. This is estimated to generate $200 billion in the tax, and $100 billion in fees.
- Cuts in Medicare — $400 billion will come from cuts and savings in the current Medicare program this includes payments to hospitals and physicians.
Liberal groups and labor unions signaled that they are prepareing to battle Baucus over his plan. Today they are sending letters to the White House, and Senator Reid reiterating their demands.
The Senator has come up with a very workable plan that will not bankrupt the country at the same time offer insurance for the uninsured. The President should take note of this plan and incorporate as much as possible in his speech this Wednesday before congress.