Government

Analysis compares competing health system reform plans

Some proposals would cover nearly everyone who is uninsured, say researchers from the Commonwealth Fund.

By Doug Trapp — Posted Feb. 2, 2009

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An analysis of major federal health system reform legislation from the last two years has concluded only bills that fundamentally change the health system will cover a significant number of the nation's roughly 46 million uninsured.

The January report by the Commonwealth Fund, a nonpartisan research organization, and two other research groups examined 10 bills and one non-legislative proposal designed to expand health insurance coverage. The authors estimated the number of people the proposals would cover and how the legislation would affect national health spending.

The analysis is intended to be a guide to health care bills for members of Congress and other policy leaders, said Sara R. Collins, PhD, report co-author and assistant vice president at the Commonwealth Fund. The report grouped some similar legislation together and analyzed one bill in each group. But the study did not estimate how the measures' payment to physicians and others would affect access to care, she said.

The report found that two bills and one proposal from the last two years would leave none or only a few million uninsured. These include the Building Blocks plan written by the Commonwealth Fund that is similar to public-private proposals by President Obama and Sen. Max Baucus (D, Mont.). Also included is the AmeriCare proposal by Rep. Pete Stark (D, Calif.), which the report estimated would cover every uninsured person under new public health plans.

The Healthy Americans Act, sponsored by Sen. Ron Wyden (D, Ore.), would use an individual insurance mandate to cover all but about 3 million uninsured. "Bills that don't require everyone to have coverage tend not to get to near-universal coverage," Collins said.

Three other market reform or state-federal partnership measures, including those authored by Sens. Mike Enzi (R, Wyo.) and Richard Burr (R, N.C.), would cover roughly half of the uninsured, the report estimated. The remaining five bills in the report would target specific populations and would not increase coverage by more than a few million people.

Study authors estimated that one bill by Rep. Sam Johnson (R, Texas) actually would increase the number of uninsured by nearly 300,000. Letting business associations buy group coverage across state lines would enroll more healthy workers but force out less healthy or older people, the report concluded. Johnson's office did not respond to a request for comment.

Obama and Democrats in Congress have begun work on comprehensive health reform. Republicans, meanwhile, have yet to outline comprehensive proposals but likely are having closed-door discussions with Democrats on the issue, said Len Nichols, PhD, an economist and director of the Health Policy Program at the New America Foundation, a nonpartisan policy institute.

Republicans have limited time to determine what reforms they will back, said Robert Moffit, PhD, director of the Center for Health Policy Studies at the Heritage Foundation, a conservative think tank. "What's coming at them is coming like a freight train," Moffit said.

Some Republicans favor ending the tax exclusion for employer-sponsored health insurance, but during the election Obama criticized Sen. John McCain (R, Ariz.) for supporting an end to that exclusion, said John E. McManus, a former Republican staff director of the House Ways and Means health subcommittee. Conservatives are still developing an overall stance on reform, he said.

Congressional Republicans in safe seats aren't going to back reform proposals acceptable to Democrats, predicted Mark A. Peterson, PhD, professor of public policy and political science at the University of California, Los Angeles. GOP lawmakers "are going to have a perspective and a point of view which right now is just not going to be anywhere near the middle of the political spectrum." But Moffit said Rep. Tom Price, MD, (R, Ga.), an orthopedic surgeon, has more expertise than previous heads of the Republican Study Committee, a conservative House members' group.

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ADDITIONAL INFORMATION

Effects of health reform bills

A Commonwealth Fund analysis of 11 health reform proposals introduced starting in 2007 concluded that three would cover all or nearly every uninsured person. The report also estimated how much total health spending -- by governments, employers and households -- would change under each plan.

Plan Federal health spending Uninsured covered
AmeriCare (Stark) $188.5 billion 48.9 million
Healthy Americans (Wyden) -$39.6 billion 46.0 million
Building Blocks (Commonwealth Fund) $103.9 billion 44.9 million
Ten Steps (Enzi) $176.4 billion 26.9 million
Every American Insured (Burr) $161.3 billion 22.3 million
State/federal partnership bills* $40.3 billion 21.1 million
Kids Come First (Kerry/Waxman) $27.0 billion 6.0 million
HSA Expansions (Cantor) $19.2 billion 5.8 million
SHOP (Durbin/Kind) $27.2 billion 1.7 million
End Medicare Wait Period (Bingaman) $10.8 billion 299,200
Small Business Fairness (Johnson) $0.2 billion -283,000

*Multiple bills and sponsors. State/federal grants would be limited to 15 states. The report projects 48.9 million uninsured people in America by 2010 under current law.

Source: Commonwealth Fund, January (link)

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Coverage, costs may vary

A Commonwealth Fund analysis of 11 health reform proposals introduced starting in 2007 concluded that three would cover all or nearly every uninsured person.

National coverage bills

Three public/private national reform plans: Commonwealth Fund, Sen. Max Baucus (D, Mont.), President Obama. Establishes a national health insurance exchange, requires employer contributions and expands government health programs.

Healthy Americans: Sen. Ron Wyden (D, Ore.). Requires Americans to have health coverage, creates state-based insurance exchanges and eliminates the tax exclusion for employer-based health spending.

AmeriCare/Medicare For All: Rep. Pete Stark (D, Calif.), Sen. Edward Kennedy (D, Mass.), Rep. John Dingell (D, Mich.). Creates a federal public insurance program and requires employers to pay for part of the costs.

Ten Steps: Sen. Mike Enzi (R, Wyo.). Replaces the tax exclusion for employer-based health benefits with individual tax deductions and credits.

Every American Insured: Sen. Richard Burr (R, N.C.). Replaces the tax exclusion for employer-based health insurance with individual tax credits in states that create insurance exchanges for high-risk residents.

Partial or targeted coverage bills

Three state/federal partnership bills: Rep. Tammy Baldwin (D, Wis.), Sen. Lindsey Graham (R, S.C.), Sen. Jeff Bingaman (D, N.M.). Creates a commission to award federal grants to expand health insurance coverage.

Kids Come First: Sen. John Kerry (D, Mass.), Rep Henry Waxman (D, Calif.). Offers incentives to states to expand coverage for children up to age 21 in certain families.

Three association health plan bills: Reps. Sam Johnson (R, Texas), Vern Buchanan (R, Fla.) and Howard McKeon (R, Calif.).Allows certain associations to band together to buy group health insurance for their employees.

Small Business Health Options: Sen. Richard Durbin (D, Ill.), Rep. Ronald Kind (D, Wis.). Creates a national health insurance purchasing pool in which certain businesses can buy coverage.

Health Savings Accounts Improvement: Rep. Eric Cantor (R, Va.). Increases HSA contribution limits and allows them to be used to pay for individual market health premiums.

Ending the Medicare Disability Waiting Period: Sen. Jeff Bingaman (D, N.M.), Rep. Gene Green (D, Texas). Ends the waiting period for disabled under 65 to enroll in Medicare.

Source: "An Analysis of Leading Congressional Health Care Bills, 2007-2008: Part I, Insurance Coverage," Commonwealth Fund, Jan. 9 (link)

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