The Republicans feel that they will have to offer a realistic solution to substitute the Affordable Health Care. They have been reluctant to step into the political swamp but are now ready to build practical plans.
Essentially the problem is that most of the consumers when ill are vulnerable and this is why the prices are more expensive than anywhere in the world. The costs affect businesses and local governments. The employees are shackled to employers as individual insurance is exorbitant. Retirement also seems out of reach because of medical costs.
AdvertisementThe Affordable Care Act has made insurance mandatory, but there is no plan to make it affordable, as the burden is high on businesses and individuals.
Republicans want to create a Federal program for universal private insurance, funded by a payroll tax and each state could decide whether to take part. The program would fund the purchase of private insurance but with no premiums or deductibles. Insurers who participated would insure everyone and the policies would be uniform and would include co-pays to avoid over-consumption.
All citizens of participating states would be part of a giant pool and insurers also a part of the pool would compete on quality of service provided.
Medicare and Medicate would become obsolete as all citizens would have full coverage. States opting not to participate in the Federal Universal coverage program would replace Medicare and Medicaid on their own.
The main challenges' this proposal will face is the transparency which could lead to political hardships. The rules would also have to prevent state-shopping.
Wealthier taxpayers, though hit by a new tax would find opportunities to retire or launch new ventures as they would be free of high individual health insurance. There were ways to improve and develop a healthier approach. Liberals would benefit with universal tax-financed care, there would be no fear of bankruptcy due to illness in the family and importantly, the poor would have the same healthcare as everyone else.
Hannah Punitha (IRDA Licence Number: 2710062)
Goplifer, March 2013
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