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Bush's New Health Insurance Plan

1 INTRODUCTION 3
2 WHAT PRESIDENT'S NEW HEALTH CARE BILL AIMS AT? 4
3 BUILT-IN HAZARDS IN HAS'S POLICIES: 13
4 CONCLUSIONS 14
5 BIBILIOGRAPHY 15

1. INTRODUCTION:

American employees have been desisted to avail health benefits out of their income there by lessening their tax burden on that income but only as long as that benefits or coverage is being bestowed to them by their employers. Now employer -provided health-care plans is shielding about 160 million Americans and extending an average tax subsidy f $ 2780 on each covered employee. Further, it is estimated that total value of health care benefits was estimated to cross $ 205 billion.

Under the existing scheme, if an employer has not extended any health-care coverage or if any employee does not like the plan offered to him, then he has to buy his own health-care policy from his after -tax earnings. This aspect is being criticized as being unfair.

Companies are being encouraged to spend more on health insurance due to the fact that as it want to keep employees more loyal and this generous policy encourage consumers to avail the medical services in excess than what they need it actually and result in health-care inflation.

The solution offered by Armey and Stark is to employ the tax code to assist increase coverage. They even advocate that congress should approve a proposal of creating a new refundable tax credit to facilitate all Americans to buy moderate health-care plan. Some senators vehemently support sponsored legislation which facilitates tax credit or deductions for consumers to avail health coverage. Currently, Americans who subscribe for private health insurance plan has to do the same with his after tax income and no tax deduction is available. American government existing schemes like Medicare covers most of the costs for medical care for 40 million disabled and aged and Medicaid takes care of another 40 million low-income Americans.

But, one important factor to be borne in...