Avon, Conn.-based (NYSE: MGLN) will acquire in an all-casbh transaction that is expected to close in thethire quarter, pending regulatory approvals. Like all of the other presidential health care proposals, this is a political proposal in outline form—well short on details. His program won’t cost a lot since most of his spending comes from rearranging the existing tax exemption on employer-provided health insurance. But it is not at all clear how he would give the individual health insurance market the fundamental overhaul it would need to become the primary insurance market he would make it. How he would deal with age rating, medical underwriting, and pre-existing condition provisions are on top of that list of overhaul questions.
He also needs to show us how a $5,000 tax credit will give a near-poor uninsured family enough assistance to buy a health insurance policy with meaningful benefits when the average cost of employer-provided care is $12,000 a year. Cheaper plans are available to young and healthy people in the individual market, but it will be the sick and old we will need to hear more about. McCain’s health reform plan is a patchwork of largely good ideas built on solid market-based principles.
Any meaningful contribution McCain would make available to low-income people who do not have employer support for health insurance would drive the cost of his program way up. It may not be realistic for McCain to say he would help people who need help paying for their health insurance but that his plan will not cost taxpayers a lot of money. Senator McCain’s health care proposal is one that will appeal to conservative Republican voters as well as centrists.
The primary proposal here is to put providers at risk in Medicare by taking us back to the early days of managed care when the market believed the same thing and unsuccessfully tried to implement capitation. McCain is offering a proposal that would truly put the market front and center in a largely conservative prescription to solve America’s health care cost problems. Hacker, a native of Manchester, joined the department in February 2001 to work in the maternal and child health division.
No remedy for the thousands of people with health insurance whose health plans will continue to do business as usual, denying and delaying their rightful claims. From what I have discovered of secret dealings, it would not surprise me to learn that Coventry may be the subject of a federal investigation in the future. My case is a very important step to holding managed care responsible for the major role they play in attempting to hide behind the federal law ERISA to deny quality care to the disabled in West Virginia. There is nothing here that will stop unaffordable health insurance rate increases.