Exploring Bipartisan Solutions to Our Nation's Health Care Stalemate

A refreshing display of leadership for and bipartisan support of universal health coverage was in evidence at the 10/28 Health Care Reform event at the National Press Club in Washington, DC, where Rep. Jim Langevin (D-RI) presented his legislative proposal to ensure affordable, universal coverage to all Americans, and Rep. Joe Schwarz, MD (R-MI) offered support for the idea that government should play a role in providing universal health coverage.

The proposal, based on the well-regarded Federal Employee Health Benefit Plan (FEHBP) that members of Congress use, would be called the American Health Benefit Program (AHBP), and would offer all Americans insurance choices through payroll tax financing.

Speaking from a lifetime of experience as a practicing physician, Rep. Schwarz said that he "reluctantly has come to the conclusion that the present system is not sustainable," and that -- unlike 20 years ago -- he now believes that government must play some role in providing universal coverage. He praised Langevin's AHBP as a model to get our essential, bipartisan discussion started.

Stuart Butler, Vice President of Domestic and Economic Policy at the Heritage Foundation, welcomed the proposal, saying that he is committed to universal coverage and that mandating a basic benefit package in a bipartisan approach is essential to achieving any major health care reform. Butler offered his support for the soundness of using FEHBP as a solid, wise, and familiar model with bipartisan support. Linda Blumberg, a Senior Research Associate at the Urban Institute, also praised the FEHBP as a model, and agreed that a mandate is essential to achieve universal coverage.

Under Rep. Langevin's proposal, all citizens would be mandated to participate in either a private health insurance plan or AHBP. The government would pay enrollee premiums to the health plan of the enrollee's choice, with the enrollee responsible for paying up to 28 percent of the premium (with subsidies for lower-income Americans). The federal government would provide a defined contribution through a Trust Fund financed by an employer tax for those employers who choose not to offer their workers health insurance. Individuals' share of the premium would be collected as a tax.

Rep. Langevin argued that this system is a realistic and affordable solution that would, by pooling Americans into one insurance market, cause premium costs to fall, relieve employers of the burden of annually negotiating health-care plans, and save an estimated $40 billion in uncompensated care costs for the uninsured. Medicaid would remain, although some individuals might shift into AHBP. Rep. Langevin also called for the introduction of electronic medical records, saying that electronic records would save money by reducing costly and dangerous medical mistakes.

Julie Appleby, a USA Today health reporter, opened the event by sharing some findings from a recent USA Today/Kaiser Foundation study which found that few issues affect Americans as deeply as health care. According to Appleby, 1 in 4 Americans had trouble paying health-care bills last year (double the percentage in 1976), and health care is America's #2 cost after housing. Sixty-two percent of those struggling to pay do have insurance, although workers are paying $1,000 more for insurance than five years ago.

Ruy Teixeira, a Joint Fellow at the Century Foundation and the Center for American Progress, provided a picture of the current public appetite for health reform, noting that 62-75 percent of the American public supports universal coverage and that 75-80 percent view health care as a "right." Teixeira cautioned however, of mixed evidence on American's willingness to pay much for other's health insurance, and also clarified that support for reform plummets if people fear their own choices or access to care will be limited.

A short summary of the legislation and a set of frequently asked questions -- both provided by Rep. Langevin's office -- are available for download below.

Participants

• Jim Langevin
  (D-RI), U.S. House of Representatives


• Joe Schwarz
  (R-MI), House of Representatives


• Len Nichols
  Director, Health Policy Program


• Julie Appleby
  Healthcare Business Reporter, USA Today


• Linda Blumberg
  Senior Research Associate, Urban Institute


• Stuart Butler
  Vice President, Domestic and Economic Policy Studies, Heritage Foundation


• Ruy Teixeira
  Senior Fellow, The Century Foundation and the Center for American Progress; and Co-Author, The Emerging Democratic Majority

Related Links

• Current Status of the American Health Benefits Program Act of 2005 (H.R. 4256)