| The Coalition
for Affordable Health Coverage believes that Washington policymakers
should utilize market-based solutions to help make private
health insurance affordable and attractive to those who are
currently uninsured.
What are Market-Based Policies?
Market-based policies look first and foremost
to the private sector to help people gain coverage, rather
than to the expansion of government funded and controlled
programs. Market-based policies affirm the importance of consumer
choice and control and seek to facilitate competition and
choice for all consumers, getting them coverage at the best
price with the benefits they need.
Why Private Coverage rather than Government
Programs and Coverage?
There are two primary reasons why market-based
solutions are frequently more effective than public health
insurance coverage. The first is cost: Covering each uninsured
individual through public programs like Medicaid costs the
federal government and states approximately $2000 (Source:
Kaiser Commission on Medicaid and the Uninsured, January 2005).
By contrast, many Americans with low and modest incomes would
be able to purchase their own health insurance policy with
a $1000 tax credit. Simply put, tax incentives are a more
cost-effective way for the federal government to reduce the
number of uninsured Americans.
Second, private coverage preserves choice
– of health insurance carriers, of various types of
health insurance plans, and of doctors. Health insurance needs
are distinct – for instance, the amount and type of
insurance sought by a young college graduate would be different
from a middle-aged entrepreneur seeking coverage for herself
and her family. Private coverage, rather than a “one-size-fits-all”
public program, is the best way to recognize the unique needs
of each individual, family, or small business.
What Kinds of Market-Based Polices Would
Help the Uninsured?
Most of the uninsured cite affordability as the primary reason they are without coverage. Most work and can afford something for coverage because they earn incomes above poverty ($9,570 for an individual and $16,090 for a family of three). What they really need is a little help obtaining private coverage.
Health care tax credits are the boost that could help people afford coverage. The Coalition advocates four primary market-based solutions to help the uninsured:
• Tax
Credits
• Health
Savings Accounts
• Tax
Deductions
• High-Risk
Pools
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