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That was McCain's healthcare plan in a nutshell.
Let's see -
1) Allow people to buy insurance across state lines. The Pitch: More competition will result in lower costs. The Reality: With the federal government doing very little to regulate insurers to expand coverage and prevent policy holders from being screwed, some states have passed their own guidelines. Allowing people to buy insurance from other states could take away the power their state has to regulate commerce within the state. Besides, is that any guarantee insurance companies would want to offer coverage to a person they considered to be risky?
2) Tort Reform The Pitch: Doctors are paying too much for malpractice insurance - it is driving them out of business. We need to cap the damages some one can get for medical malpractice. This will lower medical costs two ways - lowering "business" costs for providers and reducing costs associated with "defensive" medicine. The Reality: A cap on damages could result in some situations in which people are grievously injured or killed by an incompetent doctor with no attorney to bring justice to the injured party or family. As for "defensive" medicine, sometimes it saves lives and when it is your life or a loved ones life at stake, you don't want to risk it. There are valid arguments to be made for tort reform, but it is not a solution to the health care crisis.
3) Eliminate the Tax Benefit Discrimination between Employer sponsored plans and individual The Pitch: It just isn't fair that people who purchase insurance through their job pay premiums pre-tax, and people who buy individual policies pay with after-tax money The Reality: I'll concede the "fair" point, but that's a tax question, not a solution for health care. Do we know enough about why people buy policies through their employer? Is it just that it is pre-tax or is it that as part of a group plan, a participant has some protections an individual policy holder may not? For people whose employer doesn't offer insurance, is being able to pay premiums pre-tax really what is going to make an individual policy affordable? Sure, it will help people already in that situation, but will it really help those who currently have no coverage? Such a provision would be risky because if it really is only the taxes keeping young, healthy people in their employer-sponsored plans and they drop their current policy to go on their own, the group would be left with an ever shrinking pool of older/sick participants - thus, raising costs for the employer and participant.
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