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The Obama campaign has issued three new ads on health care reform.  They hit the McCain campaign hard on their health care reform proposals. (links below the fold).

McCain will start taxing your health benefits from your employer. Right now, employers can deduct the costs of your benefits from the costs of doing business so that your health premium is paid for by pre-tax dollars.  McCain's plan will change all that.

UPDATE In fact, it appears that this will mean taxing the retiree health benefits workers receive from their company.

Also, McCain has said that the way he will pay for his health reform is by cutting approximately $1.3 trillion (about twice the cost of the bailout) out of MEDICARE and Medicaid. McCain will be making HUGE cuts to the Medicare program at the same time that millions of baby boomers will retire?  This spells doom for Medicare.


More below the fold.

UPDATE: Link not working - here is url

Here are the latest ads by the Obama campaign taking McCain's health care proposal head on.




Why all the fuss?

Taxing your health benefits

By taxing workers' health care benefits under McCain's plan, approximately 160 million Americans are at risk of losing their employer coverage and estimates suggest that 10s of millions will LOSE THEIR COVERAGE under McCain's plan.

Under McCain's plan, most people would have to buy their coverage in the non-group heath insurance market, where they can exclude pre-existing conditions.

Do you know who would NOT be able to buy private health insurance under McCain's insurance plan?
Not to mention, Elizabeth Edwards, Ted Kennedy -  you know, anyone who has had  serious illness.

In the individual market, 11% of people who apply for coverage are denied.  Deductibles are MUCH  higher. and many policies do not cover even the most basic benefit: 40% will not cover the delivery of a baby! 33% will not cover an adult health exam. 13% won't cover well baby care.  No prevention.  No value.

And the premium  cost for a family of 4 is over $12,000 per year.  McCain gives families a $5,000 tax credit, leaving most families responsible for the remaining $7,000, plus their deductible (likely to be several thousand), plus cost-sharing.  

Cutting Medicare and Medicaid

Why is John McCain proposing to cut $1.3 TRILLION dollars from Medicare and Medicaid in the next decade?


"To put this into perspective, the cut in 2012 would be equal to the entire amount that Medicare spends on nursing home care, or hospital outpatient services, or low-income subsides for the Medicare drug benefit."


His plan will also result in a" total reduction in Medicaid spending of $738 billion over 10 years-more than the cost of providing benefits for all Medicaid beneficiaries for two years.


So let's get this straight.

  1.  McCain will cause employers to drop coverage and put millions into the non-group insurance market.
  1.  He will not impose any regulations on the insurance market, so that they can continue to deny coverage to anyone they want and charge whatever they want.
  1.  His tax credit to buy insurance is less than HALF of what it costs to buy coverage in the non-group market.
  1.  And he pays for this tax credit with  a NEW TAX on employer benefits and by CUTTING Medicare.

This proposal spells disaster to America's workers and retirees.

Obama has a better way.  


- Everyone will be able to get affordable coverage through their employer or in a new Federal Health Exchange where they can buy a private plan at group rates or buy into the public plan that will function like traditional Medicare where you can go to any doctor or hospital with no insurance company interference in your care.  

- Direct premium subsidies (not tax credits) will be offered to individuals and families based on their incomes.

  - Preventive care is FULLY covered.  

- Insurance companies can no longer deny people coverage due to their health.

- The Obama plan will save the typical American family $2,500 per year.



For the sake of the public's health!

Originally posted to Helenann on Tue Oct 07, 2008 at 11:10 AM PDT.

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