Democrats Announce New Health Care Plan
The Senate Health, Education, Labor and Pensions Committee has released details of a new health care plan. (The leaders of the committee are Sen. Kennedy and Sen. Dodd.) The plan has a public option and is paid for by fees on employers.
The plan carries a 10-year price tag of slightly over $600 billion, and would lead toward an estimated 97 percent of all Americans having coverage, according to the Congressional Budget Office, Sens. Edward M. Kennedy and Chris Dodd said in a letter to other members of the Senate Health, Education, Labor and Pensions Committee. The AP obtained a copy.
…
Additionally, the revised proposal calls for a $750 annual fee on employers for each full-time worker not offered coverage through their job. The fee would be set at $375 for part-time workers. Companies with fewer than 25 employees would be exempt. The fee was forecast to generate $52 billion over 10 years, money the government would use to help provide subsidies to those who cannot afford insurance.
The same provision is also estimated to greatly reduce the number of workers whose employers would drop coverage, thus addressing a major concern noted by CBO when it reviewed the earlier proposals.
I think we’re close to a plan now. It costs under $1T and it will continue to prop up our employer-based system. I think a lot of stubborn Dems will now jump on board this plan, especially since Wal-Mart has announced support of health care reform.
In a major break with most other large companies, Wal-Mart Stores Inc. Tuesday told the White House that it supports requiring employers to provide health insurance to workers, a centerpiece of President Barack Obama’s effort to provide near-universal coverage to Americans.
The support of Wal-Mart, the nation’s largest private employer, could give momentum to one of the most-contentious aspects of legislation taking shape in Congress to fix the health system. To help pay for covering the 46 million uninsured, lawmakers have proposed mandating that all but small employers provide insurance for workers or help pay for it.
I’d like to highlight this part of Wal-Mart’s statement:
Wal-Mart isn’t changing its policies. The company says it supports the employer mandate because all businesses should share the burden of fixing the health-care system. Wal-Mart also said the mandate will only work if it is accompanied by a government commitment to rein in health-care costs that is guaranteed.
This part is key. Wal-Mart supports a public option, so this should aid those wavering Democrats (I’m looking at you Blanche Lincoln and Mark Pryor).
I think this is really exciting news! I know the plan is quite imperfect and could still be better but I expect we’ll start to see some real momentum now.
Tags: Health Care Reform
This move is a bad one for all concerned.
We need to move from an employee based system not solidify one. With innovation and entrepreneurs being the needed push we need for our economy you must move health care from the employment setting.
Roughly 30% of workers are in their jobs mostly for the benefits which strangles the economy. Most entrepreneurs will take a financial risk but they worry about a health risk.
http://delawarerepublican.wordpress.com/drtv/
Again, the Dems take a good policy and load it up with taxes and government.
Mike Protack
I’m not a fan of the employer-based system either, but any change will be a good one.
If you don’t like the way it’s paid for take it to Wal-Mart. It sounds like it’s based on an employment tax to me.
Mike,
As with UI, I agree with you that employer-based is a flawed approach. However, due to your R colleagues’ votes, this is the best that appears to have a chance of making it through the current Congress.
I haven’t heard any of the R Leaders proposing a non-employer-based health care reform plan. If I missed it, please provide the link. Thanks.
Totally agreed, PB.
I think this plan has the best shot of getting through, getting the conservadems and perhaps Snowe and Collins.
I have no idea what a Republican plan would look like. Probably something like HSAs, but I don’t understand how that’s going to insure someone who doesn’t make much money without using any tax money. McCain’s plan was to tax employer-provided benefits.
Of course Walmart likes it. Having to pay a fee of $375-750 once a year per employee is better than paying x amount per month to cover that employee.
Aren’t most of their employees part time?
“Additionally, the revised proposal calls for a $750 annual fee on employers for each full-time worker not offered coverage through their job. The fee would be set at $375 for part-time workers.”
What seems to be missing is clarification of offered coverage! Would the employer be required to share in the cost or “offer coverage” at full cost to them?
Were I work we have some labor force employee making 12-15.00 an hour and employee shared health care cost for a family plan is $120.00 a week = $6,240.00 a year with a $3000.00 deductible per year. Example @ 15.00 an hour = $600.00 a week gross – $120.00 a week for taxes – another $120.00 for health care leaves $360.00 net pay. Also, let’s assume the employee only paid $1500.00 in deductibles in a given year. So that equates to $28.85 a week leaving average weekly take home pay at $331.15. His gross pay is $31,200.00 and adjusted net pay is $17,219.00 Factor in other taxation such as property taxes, school taxes, gasoline tax, beer tax, cigarette tax, utility taxes what’s left for the working stiff to enjoy the American dream?
The legislation will be as complex as my rant above. The working class needs to hear real numbers as to how much is it going to cost them out of pocket. Offering every one a “health care plan” doesn’t address the real concern of health care cost impact. Sad fact is many employees offer the health care plan in the example forgo it because they need to house and feed their family. I don’t see health care on Maslow’s hierarchy of needs.
Yes, h. and Kilroy bring up good points. Details matter. I’m assuming the $750 fee is in addition to providing the plan already in place. There’s no way that $750/employee is going to cover everyone in a private plan. I assume the $750 goes to fund a robust public option for the unisured.
Details of the mandate matter. Would part-time Wal-Mart workers be required to buy into Wal-Mart’s current plan? Many don’t because it’s too expensive. Businesses shouldn’t be able to just foist employees off on the public plan unless they’re putting a lot more in to fund it.
I guess we’ll still wait to see the details. I think we’re finally seeing the outline of what a plan will look like. Like I said, I think there are significant flaws. I don’t think the flaws are fatal and as long as we keep improving the plan once we find the problems we’ll be making huge strides forward.
“I assume the $750 goes to fund a robust public option for the unisured.”
My take is that Walmart is going to be more than happy to hand over $750 to Uncle Sam and let him cover their employees. I hope I’m wrong.
h.,
I hope you’re wrong but I fear you’re right.
So the company blasted by liberals as the evil empire signs on to their healthcard plan and suddenly its all good. Makes you wonder.
I don’t think this makes Wal-Mart “good.” I think it makes it likely that this reform will pass. But, also I do think Wal-Mart deserves some credit for breaking from the U.S. Chamber of Commerce and leading the way for health care reform. I believe in rewarding good behavior.
If Kennedy’s bill covers medical treatment for victims of people driving off bridges, i support it…hiccup
wait…Do these costs include the savings from not sterilizing equipment, like our govt run healthcare at the Florida VA?