Reform Summary

In this post I will be summarizing the proposed health care reformation based on information I found at: http://www.kff.org/uninsured/upload/Obama_Health_Care_Reform_Proposal.pdf and in later posts I will explain how these things will be enacted and the limitations and possible problems the plan will run into. One of the big selling points of this bill is the “Overall approach to expanding access to coverage” which means that the government will make various laws that will give everyone a universal health insurance policy. A couple such requirements are that all children to have government funded health insurance and employers must either offer health insurance to its employees or aid the government funded insurance. The creation of the National Health Insurance Exchange (NHE) will make it possible for private business owners and individuals to have access to the new public plan or a series of approved private plans. This bill plans to meet these new requirements by expanding organizations like Medicaid and State Children's Health Insurance Program (SCHIP) to be able to provide care similar to what the Federal Employees Health Benefits Program (FEHBP) offers. The Obama administration plans to subsidize these requirements by making federal income tax related funds available to those who cannot afford the required coverage. The state of Texas has roundly denied previous offers by the federal government to assist (using national and state tax money) in funding the health insurance of children and people in poverty. Texas is an independent state and does not like the federal government interfering in our affairs, which is why Texas has very low state spending and taxes. Health insurance companies would no longer be able to consider current or previous health conditions in their acceptance of an individual or the formation of an individual’s premium and would form plans that meet minimal quality and efficiency determined by the NHE. A few other changes to private insurance to help control monopoly formation and price gouging are proposed. There is no state flexibility on these matters; all states must meet these requirements. Thanks for reading! I will be expanding on these concepts and giving some opinions in later posts.