^...

Policy Agenda

Issues & Priorities

Health Workforce
Research
Health Reform
Organization & Governance

Correspondence

Reports & Issue Briefs

Executive Leadership Groups

Policy Assembly

Contact Us

Back

Defining the Times

2007 Spring Dialogues

Health Reform:

Defining the President's Health Plan
Katherine Baicker, PhD, Member, President's Council of Economic Advisers

Dr. Baicker identified the three major steps in President Bush's plan to improve the fairness and efficiency of health care system:

  1. Revise the tax code: The plan provides a standard deduction for health insurance for everyone, regardless of their source of insurance or size of their premium. This removes two major inequities in the current system.
  1. Affordable Choices Initiative: To help those who still might not be able to afford health insurance even with the breaks provided by the tax code, this initiative establishes partnerships with states for high-risk pools.
  1. Encourage the use of health IT and encourage sharing information across entities. Dr. Baicker claimed that increased transparency in health care information will lead to better consumer choices.

Acknowledging some of the plan's limitations, such as concern that the plan might drive people towards the individual market and hurt the risk pool for employer markets, Dr. Baicker enthusiastically defended the plan's ability to redistribute health care expenditures more efficiently.

New Perspectives from Congress:
The Honorable Stephanie Herseth (D-SD), United States House of Representatives

Co-chair of the Rural Working Group and Blue Dog Coalition Whip, Representative Herseth focused on health reform from her rural vantage point and also discussed health care's place in the nation's economy. Her snapshot of South Dakota depicted a great landmass with a small, elderly population as well as Indian reservations. She noted projections that South Dakota will need 29% more health care workers by 2029 even as the number of annual high school graduates declines.

"The Ways and Means Committee will be the gauge of cooperation in the House."

Discussing the impact of federal policy on rural America, Herseth stressed the need to differentiate between rural, urban, and suburban health care issues. Herseth expressed hope for bi-partisan policy changes in health care, and stated that the Ways and Means Committee will be a gauge of cooperation in the House. She also announced plans to introduce legislation later this year than would require CMS's MedPac panel to include more members who represent rural health issues.

The Honorable Ron Wyden (D-OR), United States Senate

The Healthy Americans Act
Focusing specifically on his drastic plan to restructure the health care system through the Healthy Americans Act, Senator Wyden declared the current era to be ripe for substantial health reform. He expressed optimism in achieving reform during the current Congress. Having overcome many of the tensions that blocked health care reform in 1993, the nation is witnessing unprecedented collaboration between the parties, as well as between business and labor, in pursuing common goals.

Supported by leaders from labor and business alike, the Healthy American Act features these main elements:

  1. Cut the link between employers and health insurance. The plan would require employers to cash out the cost of insurance into employees' wages, so that employees could purchase insurance individually.
  1. Sign up individuals only once, through state "Health Help" agencies, which results in major savings.
  1. Provide coverage for the entire country that is at least as comprehensive as the insurance that members of Congress receive.


"Employer-based coverage is melting like a popsicle in August."

Wyden declared that the Healthy Americans Act redirects money to where it is needed, and noted five major sources of savings. He also addressed the bill's advantageous impact on various parties and stakeholders, including individuals, employers, academic health centers, physicians, and private insurance companies.

Redefining the Issues

The Honorable Artur Davis (D-AL), United States House of Representatives

"We have never depended on the private sector to take care of the public good."

Stressing the need for reform, Representative Davis noted several challenges in the current health care system, including medical advances that keep people alive longer with more health problems, the growing costs of providing care, and the degree to which the public's health relies on the private sector. Because the private sector exists to make profits, and rightly so, it should not surprise us that companies make decision based on the bottom line. Therefore, the public sector must make decisions about the public good, such as ensuring health coverage for all Americans.

With a Democratic Congress, political ground is shifting in Washington. However, Congress is still closely divided and is, as an institution, basically built for gridlock, according to Davis. He emphasized that health care reform will need to be driven by the President in order to make substantial progress.

The Honorable Steven Kagen (D-WI), United States House of Representatives

Having joined Congress this year after establishing a career as a physician, Representative Kagen shared his unique perspective on health care. He highlighted the importance of medical research and the vital role that academic health centers must play collectively in encouraging the federal government to pursue sustainable health care reform.

Kagen announced his health care plan:

  1. Openly disclose all healthcare-related prices;
  1. Give every citizen the same discount, so that everyone pays the same amount for insurance premiums, medical services, and prescription drugs;
  1. Create a single insurance risk pool 300 million strong, to leverage down prices for insurance policies and prescription drugs and;
  1. Review our commitment to cover all children and working parents.


"If you're a citizen, you're in. If it's in your body, it's covered."

Kagen declared that all Americans should pay no more than 3% of their annual income in health care costs, and his plan provides financial assistance to anyone earning less than $48,000 a year.

 

| Previous | Next |
| Overview |