Posts Tagged ‘government-backed plan’

Congress Forging Ahead on Mandatory Healthcare Bill

Thursday, June 18th, 2009

Congress is drafting historic legislation intended to restructure the American healthcare system.  At a time when healthcare costs total $2.4 trillion annually (an average of $7,868 per person), are projected to rise to $4 trillion by 2016 and 46 million Americans lack any insurance coverage, the legislation is badly needed.  According to a draft outline, the legislation might call for mandatory insurance requirements, which could conceivably be sold either through a national or state-based exchange.  The bill is also likely to include a government-backed plan to control healthcare-for-america-nowcosts.

The Joint Committee on Taxation opined that the size of the savings might fall under several taxation arrangements, which could be essential in determining how to pay for the reform bill.  The legislation includes an opportunity to drop the Sustainable Growth Rate formula, which is perceived by many as fatally flawed.

The legislation also will bring provider payments into line with recommendations from the Medicare Advisory Payment Commission, and allow payment alternatives for healthcare systems that offer coordinated care and focus on preventative health.  Medicaid would be expanded, with subsidies available to pay for coverage.

A quick analysis concludes that the House draft will cost more than legislation currently under consideration in the Senate.  So far, neither Democrats nor Republicans have been able to decide how to pay for the bill, which could total more than $1 trillion over the next 10 years.