Health Insurance Tax

Health Insurance Tax Proposal as outlined by President Bush in his State of the Union Address which calls for tax to be levied on employer-sponsored health insurance. Statement of the Problem o How will the new health insurance tax proposal affect the major stakeholders in the insurance market? o How will the proposal affect the people who do not have the discretionary income to pay for the higher premiums in the individual health insurance market? o Various heath care experts view the current system as a problem. There is an ongoing debate with regards to how beneficial the said system would be.

Healthcare organizations such as Families USA believe that the said proposal is insufficient in addressing the healthcare needs of the less privileged people especially those who have pre-existing medical conditions since they will have a hard time acquiring insurance through the individual market. Public hospitals have expressed their criticism over the issue primarily because it will increase the cost for treating uninsured patients. History of Issue o The current health insurance tax system did not levy taxes on employer-sponsored health insurance.

The current tax system drove people away from purchasing individual health coverage. Instead such system makes them rely on the health coverage given as part of employee benefits. o Such system leaves the poor and the elderly with little chance of acquiring health coverage. o President Bush introduced such proposal to cut down on federal expenditure on healthcare and improve the coverage for people. Stakeholders o The people are the foremost stakeholders in the issue for they are the ones who will be directly affected by the proposal.

The individual insurance market will likewise be affected by the proposal since there is a foreseen increase in individual insurance purchases. o The public hospitals and healthcare organizations are likewise deemed to be affected by the said proposal. Cost/Benefit Issue o The proposal is deemed to benefit individuals more because it will make individual insurance coverage more affordable. o By reforming the tax code, the said proposal will allow the federal and state government to provide medical services more to the elderly, sick, and poor citizens who cannot afford to purchase individual coverage.

The proposal, on the other hand, will create higher costs for public hospitals since private hospitals will be given subsidies that used to be devoted solely to public hospitals. Policy Goals o The primary goal of the policy is to make health coverage more affordable for Americans. o Another goal of the proposal is to increase the assitance that the government gives to the poor, elderly, and those in need of constant medical attention by helping them own individual insurance coverage themselves. Recommendations

Discussions will all major stakeholders in the issue should be held in order to insure that all concerns and questions are properly addressed. o The current health care policy must be extensively reviewed in order to determine its limitations and strengths so that the proposed changes will address the limitations and maintain the strengths. Summary and Conclusions o The healthcare proposal introduced in the State of the Union Address covers two areas of health care. ? It proposes a reform of the tax system which will allow for deductions for health care coverage.

It introduces moves that will help states that provide basic health care coverage to its citizens by redirecting Federal funding to assist States in helping their poor and hard-to-insure citizens afford private insurance. o Although the issue remains highly debatable, the concept of reforming the health care system is of great importance to everyone since it means that the necessary attention is given to a very vital issue such as health care insurance. Reference Affordable, accessible, and flexible health coverage. (2007)

State of the Union, The White House. Retrieved 29 January 2007 from: http://www. whitehouse. gov/stateoftheunion/2007/initiatives/healthcare. html. Butler, S. & Owcharenko, N. (2007). Making Health Care Affordable: Bush’s Bold Health Tax Reform Plan. The Heritage Foundation. Retrieved 29 January 2007 from: http://www. heritage. org/Research/HealthCare/wm1316. cfm. Kaiser Family Foundation. (2007) Daily health policy report. Kaiser Network. Retrieved 29 January 2007 from: http://www. kaisernetwork. org/Daily_reports/rep_hpolicy. cfm#42553. Lemieux, J. (2001) Bush’s half-hearted health proposal. Retrieved 29 January 2007 from: http:// www. ppionline. org/documents/bush-health-601. pdf.?