Political rhetoric thrives as we get close to a vote on the colossal Healthcare reform bill. Republican, Democrats and Independents, all agree that something needs to be done to stabilize health care cost and make health Insurance premiums more affordable. The dilemma - these are two separate issues and the current healthcare reform bill is so wrought with special interest favors that congress won’t even show Americans what they are about to propose. This is a disgraceful, malicious process and we should be as concerned about government processes as we are Healthcare. But I digress. Sure, maybe a few million people will get a break at the expense of the remaining 90% of Americans and maybe the few deserve a break. Unfortunately, with 300+ million Americans, a solution for 5-10 million at a cost of 1 trillion is outrageous.

Fortunately there is a solution that benefits ALL Americans and addresses a large portion of the uninsured. With a few add-ons down the road we could create a Healthcare and Health Insurance formula for the world. Further, the solution solves the health care cost issue as well as the health insurance cost issues defined by both parties.

This is so simple it’s no surprise that it hasn’t been created by Congress.  Ready?

All “Tax Filers” age 18-65 get a $1 for $1 tax credit – up to $2500 – for every dollar spent on health care and/or health insurance premiums. Another $500 credit for every dependent child under 18.

Total cost – $507 Billion

Effect/Result:

1)     AT least 25 Million Americans get Healthcare and Health Insurance coverage with ZERO negative impact on premiums for everyone else.

a.      The 17 Million uninsured (include in 25m above) who make over $50K and choose not to buy insurance essentially can’t refuse. High Deductible plans cost less than $2500 in most cases they all become insured at no cost to them. And no burden to responsible Americans.

b.     Those w/o insurance can get coverage with the first $2500 essentially free. ($6,000 for a family of 4)

c.      Those making more than Medicaid level but less than $50K get most if not all of premiums covered.

2)     Insurance companies get 25 million more customers helping insurance rates for everyone overall.

3)     U. S. Business “Stimulus” - Across the country business is stimulated as they raise employee contributions to employer based healthcare premiums up to the $2500 level or even slightly higher having no impact on the majority who get coverage via employer plans. Providing further economic benefit to the country.

A few issues still remain which could be added as we dissect impact of Tax Credit. The largest with any real substantive moral value, is that of the uninsurable. A national high risk pool could be created with all insurers contributing proportionately based on some % of gross premiums collected.  Result – Fair distribution of risk; insurability for the uninsurable and premium savings of the same $2500 enjoyed by all Americans.

Layering in other ideas like buying/selling Health Insurance across state lines, and other reforms could be added in over time as these are complicated and involve state and federal insurance reforms.

Finally, the savings derived from Medicare reform and Medicare financial stabilization can be used to improve the Medicare program. Saving from Medicare redirected to any other purpose will just have to be paid for later in another spending bill.