The New York Times reports on George Bush’s latest health care proposal which is to be announced in the State of the Union Address:
The basic concept is that employer-provided health insurance, now treated as a fringe benefit exempt from taxation, would no longer be entirely tax-free. Workers could be taxed if their coverage exceeded limits set by the government. But the government would also offer a new tax deduction for people buying health insurance on their own…
White House officials say the health tax plan would neither increase spending nor reduce tax revenues. Supporters say it would expand coverage to some of the 47 million uninsured. But critics say it would, in effect, tax people with insurance to provide coverage to those without it…
In his radio address on Saturday, Mr. Bush described his proposal as a way to “treat health insurance more like home ownership,” giving people tax deductions for their health insurance in much the same way as they get tax deductions for home mortgage interest. He said the current system “unwisely encourages workers to choose overly expensive, gold-plated plans,” driving up the overall cost of coverage and care.
I’ve seen plenty of people who are under-insured, but I certainly have not had any patients with these “gold-plated plans.” Some people actually have their health care covered without high co-pays and deductibles, and some even get additional benfits such as dental care, but I hardly think that these are the cause of inadequate access to care.
At least Bush does have one good idea included when he provides tax breaks to those paying for their own plans, but this should not be at the cost of those who currently are insured. Nor should this be considered a complete solution as there are many people, especially those who are not young and healthy, who will have problems finding affordable care even with these tax breaks.
