The reform of the U.S. health care system is probably one of the biggest challenges facing President Obama’s administration since the president took office. The prospect of failure could be severely damaging to the president’s reputation and a big cause for celebration for his opponents.
One of the main objectives of the proposed reform is to ensure medical coverage for every American. But the actual reform that is ardently defended by the president is surrounded by uncertainty, confusion and a lot of controversy. The opponents of the plan have been very vocal of their criticism of the plan and have been quick to express their objections. So what is all the fuss about and what are the issues facing the plan? Are the reforms what America needs right now?
One of the biggest concerns that has been raised by the opponents of the plan is the cost of the plan A lot of the economists and the tax payers alike are concerned that the rising cost of health care will cripple America’s economy over the next decade or so. The opponents do not want the cost of the health care reform to slow down the economic growth of the country in the coming years. Making the 48+ million uninsured Americans part of the health care system is fine, as long as the reform is not seeing as dragging down the economic welfare of the whole country for years to come. Even the “neutrals” are arguing against writing the big checks for the plan as George Bush did with the war. The poll numbers are turning on the president because of the issue.
The problem, however, is that America does not have a health care plan that is comparable to other western economies such as the UK. The existing health care is the most expensive in the world and as surprising as it sounds, not all Americans have medical cover. According to recent figures, there are currently over 48 million people who are uninsured for medical cover. This equates to around 16% of the American population that is uninsured for health.
The state is directly involved in medical coverage of 20% of policyholders. On the one hand, pensioners and the disabled, who benefit from the system “Medicare” partially funded by taxes and costs between 200 and 300 billion per year to the state. On the other hand, people with very low income, disabled and veterans benefit from the “Medicaid” system. The remainder are insured by private insurance, mostly through their employer, who took charge of 70% to 80% of costs. That leaves the poorer Americans left to buy medical cover directly from private insurance companies. The costs associated here are approximately half that of insurance purchased by an employer, but insurers are not subject to strict rules that leaves the system open to abuse by companies when the insurer needs to receive insurance payouts.
The president deems the current system as expensive for the state, too expensive and unfair to the Americans. The President wants to offer Americans a real alternative to the private system and provide affordable medical coverage for the uninsured.
The president does not want the public health system to become mandatory? No, says Obama. Everyone is free to keep their private insurance. A “pay or play” policy will be applied to employers whereby: they can continue to insure their employees through the current private insurance provisions or opt out of the insurance but pay the American state a fee.
The White House is fighting on several fronts. First is the ultra-conservative activists who are of the opinion that they do not work for others and refuse any collective obligation. But you try telling that to the poorer population of America. “I find that repulsive and an absolutely bone-headed way to go,” says a patient struggling with his finances and coping with Huntington’s disease. However, while most Americans realize that there is a need for a reform of some sort in the next couple of years, 40% of Americans are hoping that the plans don’t come to fruition and another 25% cannot decide whether the plans will benefit the country as shown by a recent “The Harris Poll.
Some of the other opposition to the plan comes from the private insurance companies fear that the reform will give a competitive advantage to the public sector. On top of all that you have the political Republican political opposition. Their motivation is to oppose the reform simply to stand out clearly from Democrats for the upcoming mid term elections in 2010.
With so much at stake politically and economically, it will be interesting to see how the combined versions of the bill that were passed by House of Representatives and Senate on 7 November and 24 December respectively will be combined into one in early 2010. One thing will be certain; the furious debate will continue to grip the American people whatever the outcome.
Photo copyright Brykmantra
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