Panel Discusses Expanding Health Coverage To Uninsured Via 'Early Medicare' Program

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Health Insurance / Medical Insurance
Article Date: 10 Jun 2008 - 11:00 PST

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At a panel discussion on Friday, lawmakers and health experts considered a Commonwealth Fund proposal that would provide health insurance to 44 million of the 48 million uninsured U.S. residents, CQ HealthBeat reports (Wyckoff, CQ HealthBeat, 6/6).

Under the proposal, a government-operated connector authority would offer lower-cost health plans, including a "Medicare Extra" plan built on the existing Medicare system. All employers would be required to provide coverage for workers or contribute up to 7% of their payrolls into a fund to generate about $45 billion. Tax credits would be used to ensure that premiums account for no more than 5% of income for lower-income families and 10% for higher-income families. People who remained uninsured would automatically be enrolled in a plan when their taxes are filed (Kaiser Daily Health Policy Report, 5/13).

The plan also calls for the overhaul of health information technology, evidence-based medicine, public health and the health payment system.

The Commonwealth Fund estimates that Medicare Extra premiums would be 30% lower than employer-sponsored plan premiums. Proposal co-author Cathy Schoen of the Commonwealth Fund on Friday said that early coverage under Medicare is supported by 73% of older U.S. residents and 66% of U.S. residents between ages 50-64 who are currently covered by their employers.

Reaction
Rep. Tom Price (R-Ga.) questioned the idea of basing a health insurance option on Medicare, saying, "It took us 40 years for us to get Medicare to see that it needed a prescription drugs program." He added, "I think we are brighter and better than the current system that we have."

Cybele Bjorklund, Democratic staff director for the House Ways and Means Committee, said that Medicare would be a good model for expanding health insurance because it is efficient and providers prefer it over private insurance (CQ HealthBeat, 6/6).

A webcast of the panel discussion, sponsored by the Alliance for Health Reform and the Commonwealth Fund, is available online at kaisernetwork.org.

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation.

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