FAH Announces Plan to Insure all Americans
The Federation of American Hospitals (FAH) released a plan, the “Health Coverage Passport” that may help ensure that all Americans have health coverage. With the adoption of this plan, it is projected that about 98% of Americans will be covered. Currently, one in six (47 million) Americans are uninsured, which has a large impact on hospitals and other providers that care for these patients.
In addition, the number of uninsured has increased approximately 1 million yearly. Of the uninsured, 9% are children, 71% have one or more workers in the family and 48% are living below 200% of the Federal Poverty Level (FPL). Based on the Lewin Group Health Benefits Simulation Model (HBSM - pdf), the FPL is $9,800 for single individuals and $20,300 for a family of four. Healthcare expenditures for the uninsured are expected to reach $82.4 billion in 2007 and $38 billion of this care may be uncompensated (estimates from HBSM). The HBSM shows the extent of the burden on those groups that cover these expenses including patients (40.6%), private physicians and providers (24%) public providers (22.2%), workers compensation (11.3%) and veterans health programs (1.9%).
The FHA’s proposed plan works by:
- “Expanding and strengthening Medicaid and the State Children’s Health Insurance Program (SCHIP).
- Establishing Health Coverage Passports to cover the entire or partial cost of health insurance premiums (assistance based on income).
- Allowing premiums on private insurance purchased in the individual market to become tax deductible for those not offered employer coverage.
By implementing the FHA plan, it is projected that health spending will increase $115.2 billion for the federal government and $3.8 billion for private employers, while the states ($13.8 billion) and households (36.9 billion) will experience a combined decrease of $51 billion. For additional information including a detailed description of the plan, visit the FHA’s website.”
Related coverage: Healthcare Top Concern in U.S.
February 23, 2007 Related topics: Legal & legislative, Finance