NCPA - National Center for Policy Analysis


November 27, 2006

Newly elected Democrats and America's Health Insurance Plans (AHIP), the industry's trade association, have put universal health care at the top of their legislative agenda, says Investor's Business Daily (IBD).

While Democrats have not developed a comprehensive plan, AHIP has outlined its formal strategy:

  • The group wants the federal government to spend $300 billion over 10 years on the plan, which would expand federal-state programs -- including Medicaid -- to insure below-poverty-line children and adults.
  • The organization also wants individuals to buy coverage through universal health accounts paid for with pretax dollars, with federal matching funds for working families.

But John C. Goodman, president of the National Center for Policy Analysis has his doubts:

"There is no way to make health insurance really universal in the United States. To do that would mean everybody is in the same system, and you couldn't do that unless you make it free.  A free system would mean runaway costs and reduction in quality," he explains.

Goodman's solution: Personal and portable insurance, similar to health savings accounts, which are engineered like the 401(k) retirement savings program, and allow individuals to buy their insurance with tax-free dollars and take it from job to job, city to city and state to state.

Source: Peter Benesh, "U.S. Health Insurers Expect Quick Action From Dem Congress," Investor's Business Daily, November 24, 2006.


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