Progressive hero Alan Grayson has introduced a short 4-page bill to allow Americans to buy into Medicare coverage (without subsidies). Think Progress‘s Wonk Room describes the bill, called the “Public Option Act” or “Medicare You Can Buy Into Act”:
Rep. Alan Grayson (D-FL) has provided the White House with a real opportunity to win back its disillusioned Democratic base and take the next logical step to reforming the health care system. Last night, Grayson introduced the “Public Option Act,” also known as the “Medicare You Can Buy Into Act,” which would give all citizens and permanent residents under the age of 65 an opportunity to buy unsubsidized coverage in the Medicare program. The bill instructs the Secretary of Health And Human Services to “establish enrollment periods and coverage” guidelines and requires the newly insured to pay premiums that reflect the “costs incurred for individuals within each age.”
This act would probably not have much of an impact initially because subsidized private plans would probably be cheaper for most people.
As Grayson himself admits, in of itself, the unsubsidized Medicare buy-in would wouldn’t provide an affordable option for most Americans. Clinton era reformers sought to expand the Medicare program but were never able to provide enrollees with affordable premiums on an unsubsidized basis. According to a CBO analysis of a Medicare buy-in for uninsured Americans between 62 and 64 — that group would have to pay a premium plus an administrative fee of 5 percent — “the annual premium for single coverage in 2011 would be about $7,600 (that figure includes the cost of Part D coverage).”
I hope this is a plan that most Democrats can get behind. It allows an option for people who are opposed to paying premiums to for-profit insurance companies. It’s also something that can be built upon and expanded into the future. Best of all, it’s deficit neutral.