The Uninsured
Covering the Uninsured
Existing Employer-Based Plans
Physicians for Reform believes that while an optimal solution moves toward individually owned insurance (similar to car insurance), our current employer-based system hold some advantages. The reforms we propose strengthen, rather than destabilize, our current employer-based system by lowering the cost of health insurance. This will make it easier for American businesses to compete on the global market.
While we seek to strengthen employer based plans by reducing the cost of American healthcare, there are millions of Americans who either do not have coverage or would like an alternative to the coverage they have. Physicians for Reform provides a way forward for these fellow Americans.
A Look at the Numbers
According to the U.S. Census Bureau’s 2010 numbers:*
49.9 million 9.7 million 16.1 million 15.4 million 8.8 million 9.5 million |
Total # of uninsured in America Non-U.S. Citizens Income < $25,000 Income $25,000 - $50,000 Income $50,000 - $75,000 Income > $75,000 |
Given this data, approximately 21.9 million U.S. Citizens with annual incomes below $50,000 who do not have health insurance. Nearly 10 million of these already qualify for a current government program. This leaves approximately 12 to 13 million American citizens who need help in purchasing healthcare insurance.
Physicians for Reform proposes a premium support system to help working, lower income American citizens who do not already qualify for a program such as Medicaid or SCHIP.
This program would initially expect to fully fund approximately 6 million Americans (working Americans with incomes < $25,000 who do not qualify for Medicaid) and partially fund approximately another 9 million (those with incomes > $25,000). Because this program is designed to encourage able-bodied Americans to come off Medicaid and re-enter the workforce, an estimated 3 million additional people would need full assistance (this would reduce state Medicaid rolls).
Premium Support System
A sliding scale, premium support system would empower lower income America to purchase private low cost, high deductible health insurance. This system is intentionally designed to encourage lower income Americans to exit Medicaid, increase their skill set, be part of the workforce, and seek higher incomes.
Annual federal cost for a private $5,000 deductible plan with an HSA
Male | Between $1,000 and $2,000 / year | + $2,000 HSA contribution |
Female | Between $2,000 and $4,000 / year | + $2,000 HSA contribution |
Child | Between $700 and $1,000 / year | + $0 HSA contribution |
Annual cost of the Premium Support Program:
6 million (fully funded) | x $5,000 per person | = $30 billion |
3 million (previously on Medicaid) | x $5,000 per person | = $15 billion |
9 million (partially funded) | x $2,500 per person | = $23 billion |
Total | = $68 billion |
The Elevator Effect
Because this is not an all-or-none program it encourages individuals to work and to work hard. As their income increases, the assistance they receive gradually decreases, but in return for their hard work, their lives made better. The present Medicaid system discourages people from working hard because if they earn too much money they lose their assistance.