HR676: U.S. National Healthcare Insurance Act

The Clinton Administration campaigned on Health Care Reform. Bill Clinton promised to fix the increasing cost of health care in America. Although Clinton's chances of reforming the US health care system looked quite good at first, his efforts were ground to a halt.

Since then a combination of factors-the unwillingness of other politicians to confront the insurance and other lobbies that so successfully frustrated the Clinton effort, a temporary remission in the growth of health care spending as HMOs briefly managed to limit cost increases, and the general distraction of a nation focused first on the gloriousness of getting rich, then on terrorism-have kept health care off the top of the agenda.

The Government currently seems incapable of accepting what the evidence on health care says. In particular, the Bush administration is under the influence of both industry lobbyists, especially those representing the drug companies, and a free-market ideology that is wholly inappropriate to health care issues. As a result, it seems determined to pursue policies that will increase the fragmentation of our system and swell the ranks of the uninsured.

Currently, about 64% of our health care system is financed by public money: federal and state taxes, property taxes and tax subsidies. These funds pay for Medicare, Medicaid, the VA, coverage for public employees (including teachers), elected officials, military personnel, etc. There are also hefty tax subsidies to employers to help pay for their employees' health insurance. About 17% of heath care is financed by all of us individually through out-of-pocket payments, such as co-pays, deductibles, the uninsured paying directly for care, people paying privately for premiums, etc. Private employers only pay 19% of health care costs. In all, it is a very "regressive" way to finance health care, in that the poor pay a much higher percentage of their income for health care than higher income individuals do.

A universal public system would be financed this way: The public financing already funneled to Medicare and Medicaid would be retained. The difference, or the gap between current public funding and what we would need for a universal health care system, would be financed by a payroll tax on employers (about 7%) and an income tax on individuals (about 2%). The payroll tax would replace all other employer expenses for employees' health care.

The income tax would take the place of all current insurance premiums, co-pays, deductibles, and any and all other out of pocket payments. For the vast majority of people a 2% income tax is less than what they now pay for insurance premiums and in out-of-pocket payments such as co-pays and deductibles, particularly for anyone who has had a serious illness or has a family member with a serious illness.

Currently, over 41 million people have no insurance and thousands of people with insurance are bankrupted when they have an accident or illness. Employers who currently offer no health insurance would pay more, but they would receive health insurance for the same low rate as larger firms. Many small employers have to pay 25% or more of payroll now for health insurance - so they end up not having insurance at all. For large employers, a payroll tax in the 7% range would mean they would pay less than they currently do (about 8.5%).

No employer, moreover, would hold a competitive advantage over another because his cost of business did not include health care. And health insurance would disappear from the bargaining table between employers and employees.

A Brief Summary of The Legislation:

• The United States National Health Insurance Act establishes an American-styled national insurance program. The bill would create a publicly financed, privately delivered health care program that uses the already existing Medicare program by expanding and improving it to all U.S. residents, and all residents living in U.S. territories. The goal of the legislation is to ensure that all Americans, guaranteed by law, will have access to the highest quality and cost effective health care services regardless of ones employment, income, or health care status.

  
  

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• With over 45-75 million uninsured Americans, and another 50 million who are under insured, it is time to change our inefficient and costly fragmented health care system.

  
  

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• Physicians For A National Health Program reports that under a Medicare For All plan, we could save over $286 billion dollars a year in total health care costs.

  
  

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• We would move away from our present system where annual family premiums have increased upwards to $9,068 this year.

  
  

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• Under HR 676, a family of three making $40,000 per year would spend approximately $1600 per year for health care coverage.

  
  

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• The USNHI would allow the United States to reduce its almost $2 trillion health care expenditure per year while covering all of the uninsured and everybody else for more than they are getting under their current health care plans.

  
  

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• In 2005, without reform, the average employer who offers coverage will contribute $2,600 to health care per employee ( for much skimpier benefits). Under HR 676, the average costs to employers for an employee making $30,000 per year will be reduced to $1,155 per year, less than $100 per month.
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Who is Eligible
Every person living in the United States and the U.S. Territories would receive a United States National Health Insurance Card and i.d number once they enroll at the appropriate location. Social Security numbers may not be used when assigning i.d cards. No co-pays or deductibles are permissible under this act.

Health Care Services Covered
This program will cover all medically necessary services, including primary care, in- patient care, outpatient care, emergency care, prescription drugs, durable medical equipment, long term care, mental health services, dentistry, eye care, chiropractic, and substance abuse treatment. Patients have their choice of physicians, providers, hospitals, clinics, and practices. Medicare will be improved and everybody will get it.

Conversion To A Non-Profit Health Care System
Private health insurers shall be prohibited under this act from selling coverage that duplicates the benefits of the USNHI program.

Cost Containment Provisions/ Reimbursement
The National USNHI program will annually set reimbursement rates for physicians, health care providers; and negotiate prescription drug prices. The national office will provide an annual lump sum allotment to each existing Medicare region, which will then administer the program. Payment to health care providers include fee for service, and global budgets. Doctors will be paid based on their current reimbursement rates.

The conversion to a not-for- profit health care system will take place over a 15 year period, through the sale of U.S. treasury bonds.

Administration
The United States Congress will establish annual funding outlays for the USNHI Program through an annual entitlement, to be administered by the Medicare program. A National USNHI Advisory Board will be established, comprised primarily of health care professionals and representatives of citizen health advocacy groups.

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Isn't it about time that we as a country enjoyed a health care system that works? Isn't it time that we stop choosing a job based on the health insurance it offers? Or taking a job that looks promising financially, only to find out that you pay most of your paycheck for health insurance.

This bill HR676 is an important bill that needs your help in passing. Below, I've left some informational links where you can view the bill yourself and see which representatives of your state endorse it.