Affordable Health Insurance and The State of The Union

In President Bush's recent State of The Union Address he recognized the need to provide access to affordable health insurance to all Americans.  The President's proposed reforms plan to make medical coverage more affordable and provide many more Americans access to all our Healthcare system has to offer through cheaper private medical insurance. The plan discussed by Mr. Bush in the Address also talked about moving away from our current system that relies on the government and employers to provide health insurance, towards a more consumer based system.

The President's plan takes a two-pronged approach to solving the problems of affordable medical insurance. First, the plan involves reforms of the current Tax Code so it provides a standard deduction for all Americans for the costs paid for Health Insurance. This will make sure that all Americans will get the same kind of tax breaks traditionally reserved for business owners. The idea is to level the playing field by offering the tax breaks and make it easier for people to afford and purchase individual health insurance  In theory this will encourage more Americans to purchase insurance on their own. Businesses especially small businesses can then save money on what they pay out for health insurance for workers as more of them purchase individual policies, which could result in increased wages and or other benefits.  Under the proposition families with health insurance will receive a 15,000.00 tax credit, individuals will not have to pay taxes on the first 7500.00 of income earned. To further incentivise purchase of individual health insurance the proposed plan would consider health benefits received from an employer taxable income.

The "second prong" of the approach involves offering Federal funding to help States that make access to affordable health insurance a priority. In the States that work out programs designed to help their residents gain basic, cost effective private medical insurance, the President's so-called "Affordable Choices Initiative" will reallocate Federal funding to assist those States in helping those below the Federal Poverty Level and otherwise difficult to insure citizens afford private insurance. By re-directing current Federal healthcare dollars more efficiently, it is hoped that the President's plan could accomplish this ambition without any new Federal spending.

These two ideas that have been long in coming, and in their raw form seem to find acceptance by both parties, should work together to help more Americans find access to basic affordable private health insurance.