Happy Labor Day from everyone at Astron Solutions!

 

 

Partisan Politics and Rising Health Care Costs – HR’s Impact on the 2004 Elections, Part I:  The Republican Point of View

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Here at Astron Solutions, we are gearing up for the Republican National Convention.  The main event will be taking place a few blocks away at Madison Square Garden, while various protests and demonstrations occur throughout Manhattan.  Soon our city streets will be filled with passionate supporters and demonstrators alike. 

Few can remember an upcoming election that has created such political fervor as this one.  The candidates differ greatly on the issues and have drastically different views on how our country should be led into the future.  One such issue is health care, with rising costs making it increasingly difficult for many individuals and companies to afford.  According to Hewitt’s 2003 study, health care costs rose 14.7% and have continued to rise in 2004.  At one time, many companies picked up the tab for their employees’ health care costs.  Unfortunately, rising costs have forced many employers to ask their employees to share the burden.  The average employee contribution for 2004 is projected to be $1,565, up from $1,276 in 2003. 

Both Republican and Democratic candidates have strong views on how to combat the skyrocketing costs while ensuring the accessibility of health care for all Americans.  This issue of Astronology will take a look at President George W. Bush’s health care plan.

The Republican View

“We must reform health care in America.  We must build a modern, innovative healthcare system that gives patients more options and fewer orders, and strengthens the doctor-patient relationship,” said President Bush. 

Thus far, President Bush has taken steps that he feels are necessary to achieve his health care goals.  Highlights include:

•         Health Savings Accounts (HSAs) – HSAs offer a tax-free way for individuals and small businesses to purchase low-cost, high-deductible health care plans to pay for medical expenses.  HSAs also offer a way to save for any future medical-related expenses.  Any interest earned on money in the account is also tax-free. 

•         Prescription Drug Benefits under Medicare – Prescription drug coverage for 40 million seniors and people with disabilities will go into effect on January 1, 2006.  In the meantime, the Medicare-approved prescription drug discount card saves individuals 15% - 30% off the retail price of most brand-name drugs.  In addition, low-income beneficiaries will receive $600 in 2004 and 2005 towards the purchase of medications. 

•         Community Health Centers – There are now 600 new or expanded health centers in underserved communities, serving 3 million people.  The President’s plan is to fund 1,200 health care centers to serve an additional 6.1 million people.

•         Strengthened Medicaid and State Children’s Health Insurance Program (SCHIP) – The Department of Health and Human Services has helped states develop ways to expand coverage, which has expanded eligibility to more than 2.6 million people since 2001.

•         Health Insurance Tax Credit – Workers who have lost their jobs due to international trade now receive tax credits in order to help obtain health insurance coverage.

In order to achieve future health care goals, President Bush believes that additional strategies need to be put into place.  These include:

•         Medical Liability Reform – Minimum medical liability standards will help speed compensation to patients, reduce health care costs, and improve access and quality of health care.

•         Association Health Plans (AHPs) – Legislation will allow small employers to be grouped together in order to give them the same health insurance purchase power as large employers and unions. 

•         Refundable Tax Credit – Millions of Americans who do not have employer-provided or public health insurance will be offered a refundable tax credit. 

•         Health Savings Account (HAS) Deductibility – Individuals who have HSAs will be able to deduct 100% of the premium for catastrophic health care coverage from their taxes.

•         Health Information Technology – Switching from paper to electronic medical records will reduce medical errors, costs, and time.

One option that President Bush does not believe in is national health care.  As he stated during the State of the Union address on January 20, 2004, “A government-run health care system is the wrong prescription.  By keeping costs under control, expanding access, and helping more Americans afford coverage, we will preserve the system of private medicine that makes America's health care the best in the world.”

Coming in the next issue of Astronology: Part II:  John Kerry’s views on the current health care crisis.

How much did your health insurance premiums increase at the start of your last plan year?  Be sure to vote in this week's on-line poll!