McCain’s Plan Current Status

Eliminate tax exclusion employer based health insurance

Approx 60% employer basedValue depends on tax bracket

Establish tax creditsPurchase of private insurance$2,500 individual/$5,000 family

Tax exclusion only benefits persons with employer sponsored insurance

Create guaranteed access planAccess pool: Provide insurance for individually medically uninsurable

34 states offer high risk pools

Promote individually purchased less comprehensive insurance

plans

Individual plans have medical underwriting higher

premiums

Deregulation of insurance markets

States can mandate current benefits

Bundle Medicare payments based on outcome

Fee for service reimbursement

Cost control and quality improvement measures

Invisible unlimited tax exclusion

NEJM: “The Partisan Divide – The McCain and Obama Plans for US Health Care Reform “ August 21, 2008