McCain Campaign: Our Health Plan Doesn't Work

Another admission from the McCain campaign that their health care plan is nothing more than a bunch of right-wing platitudes thrown together without any real serious thought as to how to solve the health care crisis. From CNN:

Changing the tax treatment wouldn't hurt the employer-sponsored system and would allow more of the uninsured to buy their own coverage, [the McCain campaign says]. Also, his advisers say a McCain administration would keep an eye on the credit to make sure it didn't lag behind the cost of coverage, while also working to lower the rate of medical inflation.

Younger, healthier workers likely wouldn't abandon their company-sponsored plans, said Douglas Holtz-Eakin, McCain's senior economic policy adviser.

"Why would they leave?" said Holtz-Eakin. "What they are getting from their employer is way better than what they could get with the credit."

Got that?

The entire premise of McCain's health care plan is that people can do better on the free market. That's why you get a tax credit. That's why you would be able to buy insurance across state lines. The market supposedly makes health insurance cheaper, makes your health insurance company offer better coverage, and makes buying the insurance you need easier. And things like tying health insurance to employment are anti-free market, which is why the McCain plan taxes employer health benefits to encourage people to get insurance on the individual, free-er market.

Of course, tying health care to employment is the way we've done things in America for generations, and it turns out it's also pretty popular. (Not to mention that insurance companies have to cover you through an employer health care plan, while they can deny you for pre-existing conditions on the individual market.) And so, in the face of political pressure, you have Douglas Holtz-Eakin admitting the truth.

Faced with the fact that destroying our employer-based health care system isn't exactly a priority for most Americans, he argues that the McCain plan wouldn't actually destroy the employer-based system. Why? Because the tax credit McCain is offering wouldn't buy a decent health care plan, even for the young and healthy!

Let's unpack this a little bit more. According to Holtz-Eakin, John McCain doesn't actually want to dismantle the employer-based health care system. But, McCain's plan would tax any health benefits you'd get through work. So, if Holtz-Eakin is right in saying you'd get better coverage through work than you'd get with the tax credit on the individual market (and he probably is), and if he's right in saying most workers won't drop their employer-based insurance for the individual market because they're getting a better deal at work, then John McCain is simply proposing a tax on your current health care benefits without giving you anything in return. That's the worst kind of tax increase.

Shorter Douglas Holtz-Eakin: John McCain's health care plan won't destroy the employer-based insurance system because McCain's plan doesn't work.

Remember John McCain: Less jobs, more war? Well now it's John McCain: More tax, less benefits.

(also posted at the NOW! blog)

Follow Jason Rosenbaum on Twitter: www.twitter.com/j_ro

Comments

[csavage]

Republicans think of health care as a privilege, by and large
Democrats/­proponents of a single payer system think of health care as a right.
That's the dichotomy....
FYI, in the 90's, Aetna, United and Cigna tried to market their products overseas-flopped miserably. Funny the Repubs never bring that up in their argument.....
If the private sector is such a great provider of healthcare, why don't all those poor Europeans lining up to buy health insurance?

[kemstone]

McCain's health-care plan is great! (if you're a health-insurance company)

[plooger]

> "Why would they leave?" said Holtz-Eakin. "What they are getting from their employer is way better than what they could get with the credit."

Excellent catch, Jason.

[floib]

It saddens me when I read some of these comments of people suffering from our present so-called health care system. It is totally broken and should not be resuscitated.
Not having had a serious illness so far, it was hard for me to really understand people's experiences with insurance companies. It was when I watched Michael Moore's SICKO that I fully understood what is happening in this country. People are needlessly dying all because they lack the means to afford health care.
I'm glad that more and more people recognize the need for universal health care. A healthy nation is harder to govern and control. Sick people don't work, pay taxes, or shop to keep businesses afloat.
Go to MIchael Moore's website (michaelmoore.com) and sign the petition to let your senators and representatives know you want them to support HR 676.
I, too, wouldn't want the government using our health care dollars for anything other than what it was intended for--paying doctors, nurses, supplies, etc. Since universal health care works in other countries, why not here? Why not now? No one should have to lose their home because they were unfortunate to have gotten sick. Pass HR 676 now.

[Lupin77]

When you're rich like he is, you don't need a health plan. Clueless. Doesn't understand the real concerns of average working people.

[wandering girl]

actually, McCain has been able to take advantage of near-socialized medicine all his life: first as a military dependent, then as an active duty Naval officer, followed by VA/TriCare after retiring from the Navy, then received - and is still receiving - congressional health care (which is similar to Medicare, and for which recipients pay ~25%, with taxpayers paying the rest), then Medicare once he hit 75, as well as TriCare for Life at that time as well, to cover whatever Medicare does not.

but you're absolutely right when you say he "doesn't understand the real concerns of average working people," because he's *never* had to worry about health coverage. perhaps he should be the first to use his proposal.

[LeftRight]

And when Congress is in session, he is able to receive actual socialized medicine by going to the Bethesda Naval Medical Center, the same location that serving Presidents go to!

[freethepeople90]

I think our health plan isnt working. and it should be revised. the problem is that people will not be happy this. many REPUBLICANS dont want everyone to have health care. they feel its their fault. That is how many ignorant people i know feel. we need a universal plan that will not raise our taxes. many doctors however hate this. because there money and hours get mixed with. I am curious to see how Mccain would want to fix this system. He has answered differently every single time. and i agree with whoever said we need to tax alaska. that is so smart. we do have to pay for more of there things. and mccain wants to tax more. this whole situation is a mess.

we need to be like canada.. :)

[boophus]

The only thing I want to be assured about is that money collected for health insurance is untoucable for anything else. They should return social security money to untouchable status. You pay in for specific purpose Idon't want someone funding an invasion for Oil on my health insurance dime.

[PatrickforO]

I totally agree with floib. Health insurance is a right - we need a universal system, and it needs to cover all of us. Yes, it will have problems, but it's better than what most of us have now. Nationalize the whole shebang, I say. Too important to be left in the hands of an uncaring private sector.

[sonoffestus]

Single Payer..... Universal Health Insurance. Not for profit healthcare.

[super]

I've always said its the REPUBLICAN party that's the TAX & SPEND party (only they won't spend on ordinary Americans).

[ENOUGH1]

My husband and I are both 58 years old, since he does not have a job; we have no health insurance. It's crazy,when we were younger we always had health care since we each had jobs. His Cobra has run out and we have no insurance. We tried to get health insurance but have been turned down several times because of existing conditions. He got hurt at our Church in May. This injury resulted in a blood clot. He was in the hospital for a week. The actual bill was 70,000 but since we did not have health insurance it was lowered. In the end, we paid about 30,000 to the hospital and about 8,000 for various doctors, labs, etc. If Senator Obama gets elected, I would welcome any healthcare that can be made available to us.

I voted for Obama and he voted for McCain.

[jeanwny]

I would love to understand the reasoning behind your votes or more precisely your husbands vote.You did seem to explain your position.

[adventurephoto]

Did your husband experience some kind of brain trauma during his injury? Why in the hell did he vote for McCain? Another case of someone voting against their own best interest.

[floib]

I, too, think that Obama would be more receptive to passing medicare for all. He talked about what his mother went through with her insurance company not wanting to pay in her time of need. When you need these insurance companies the most, they don't want to know you. They only want to know you, for the most part, when you are young and healthy. If you have a pre-existing condition, they will not cover you. The only way insurance companies make money is to deny care. The term "insurance" shouldn't even be used because when you need them the most, they're not there. Passing HR 676 is the only way to go.

[floib]

We need Single-Pay­er/Medicar­e/Universa­l Health care for all. Passing House Bill HR 676 would cover everyone from cradle to the grave. We are already paying for it, but are not getting our money's worth because it is going to CEO salaries, bonuses, buildings, supplies, secretaries, etc. If we were to pool all our money that we are currently paying to insurance companies, we would have enough not only for regular doctor visits, but also have enough for chiropractors, dental care, vision care, mental health reviews, rehab, nursing home care, medicines, etc. The government would NOT be paying for our health care. We have more buying power when we pool our money together than buying your own health care. The government would be the only payer. This is what we do for teachers, firemen, and policemen. Let's look at what works for France, England, Japan, Canada, etc. and avoid what doesn't. We can come up with our own unique system. Watch videos on YouTube on HR 676.

[radnip]

Republicans don't want what works for France, England, Japan and Canada. There are no rich people in those places. They've all moved where the taxes are lower.

:P

[frantaylor]

People have to stop thinking about health care in terms of insurance and think instead in terms of our collective interests. Kind of how we think about our highways and bridges. We do not charge insurance to our roads and charge them more or less depending on how often they need to be repaired. We just fix them and pay for it with our taxes. This is how we need to think about the collective health of our population. It is even more vital to our country than our roads and bridges. This is a collective issue because spreading diseases affect all people, rich or poor.

[Debbie1996]

It varies by state - but many use gasoline taxes to fund infrastructure for the very reason of having the people who use the infrastructure pay for it.

[frantaylor]

Exactly. You "use" the health care system by being a party to it. You don't pay for a particular pothole with your gas tax, the money goes into the kitty.

[DIdaho]

Health insurance is not health care. I've read a lot of posts mentioning that, but nobody "dares" to state the obvious - that actual health care is funding doctors, nurses, technicians, the machines they use, the medicines they dispense, and the buildings that house them, not paying a bunch of suits to skim the proceeds off the top.

Nobody dares, because of the S word that's being thrown around about something so silly as changing the top marginal bracket by a few percent.

This is why real change matters. It's not this policy or that on the campaign trail. It's can we get serious, intelligent, committed and (yes, patriotic) leadership in the White House over the next four years to address actual problems based on the facts and devise real solutions based on common sense.

McCain let himself be put into an idealogical, anti-intellectual box that will not allow that. Palin has showed no curiosity or thinking beyond the next sound bite. This election is not about the details of McCain's health care credits. It's about whether the next administration can cut through the complexity, the prejudice and the ideology of what's become the American system to develop true solutions.

[BJD44]

My annual healthcare -- for me as a single person through my employer -- costs in total about $7500/year. I would have to spend way more than that if I were to have to go out into the open marketplace and try to get it myself -- not to mention probably a much crappier plan.

John McCain wants to offer me only $5,000 a year and then TAX THAT!?! What?

I DON'T THINK SO!

Figure it out, people! It's not rocket science! Geez.....

Plus, 'personalized medicine' is swiftly comin' down the tracks, and that's gonna REALLY change things anyway, mark my words!

[Debbie1996]

You do not understand - Your $7,500/year is not currently taxed. McCain is proposing to tax that - Let's assume you're in the 28% tax bracket - so you would owe $2,100 in additional taxes which would be OFFSET by a tax CREDIT of $2,500 - You're right it's not rocket science -

[usreporter]

That's just moving money around - it's not helping anyone.