Franken Challenges Coleman On Disastrous Plan That Would Take Away Insurance For Millions, Create New Tax, Primarily Benefit Insurance Companies

SAINT PAUL [10/06/08] – DFL U.S. Senate candidate Al Franken today held a news conference calling on Norm Coleman to take a clear position on the health care plan of Republican nominee John McCain – a plan that would result in stripping as many as 20 million Americans of their health insurance, deregulating the insurance market, instituting the first-ever tax on health benefits, and removing important insurance protections currently in place for Minnesotans.

As many as 580,000 Minnesotans would lose their health insurance under McCain’s plan – and important guarantees like the right to have cancer screenings and childhood vaccinations covered could be threatened for Minnesotans who currently enjoy those protections.

Al Franken:

“I can say unequivocally that I will support Barack Obama’s plan. But John McCain’s health care policy would be a disaster for Americans. It would leave Minnesotans with worse health care than they have now by letting insurance companies run amok, instituting a new tax on health benefits, and potentially causing 580,000 Minnesotans to lose their insurance. Minnesotans deserve to know if Norm Coleman would stand up to this disastrous scheme in the event McCain becomes President.”

MCCAIN’S PLAN…

• A tax credit that won’t work for Minnesota families. He offers a $5,000 tax credit to families so they can fend for themselves in the insurance market – but according to the Kaiser Family Foundation, the average family health insurance premium is over $12,000.
• $1.3 trillion in new spending. According to the non-partisan Tax Policy Center, McCain’s plan would cost $1.3 trillion over the next 10 years.
• The first-ever tax on health benefits. McCain would eliminate the tax exclusion for employer-sponsored health benefits – this would be the first-ever tax on health benefits. McCain has also suggested paying for his plan by cutting Medicare and Medicaid.
• Millions will lose employer-sponsored health benefits. Health Affairs estimates that as many as 20 million Americans will end up losing their employer-sponsored health insurance as a result of McCain’s plan. The Economic Policy Institute says that as many as 580,000 individuals right here in Minnesota would lose their health insurance under McCain’s plan.
• No coverage for pre-existing conditions. Because employers wouldn’t be able to negotiate coverage on behalf of a large pool of employees, insurance companies would be able to “cherry-pick” whom and what they cover, leaving Americans with pre-existing conditions out of luck.
• Do for the insurance market what the Republicans did to Wall Street. McCain wrote in an article published in September: “Opening up the health insurance market to more vigorous nationwide competition, as we have done over the last decade in banking, would provide more choices of innovative products less burdened by the worst excesses of state-based regulation.”
• Important protections taken away from Minnesotans. Currently, Minnesota has strict regulations to protect individuals in the insurance market, regulations that could be overturned by the McCain plan:
  • Mandatory external review of insurance company decisions to deny coverage.
  • Guaranteed coverage for breast cancer, ovarian cancer, and cervical cancer screenings.
  • Guaranteed coverage for childhood vaccinations.
  • Access to routine OB-GYN services without specific referrals.

---

Experts Estimate That McCain’s Health Care Plan Would Cost 20 Million Americans Their Insurance. In September 2008, the Economic Policy Institute, in their analysis of John McCain’s health care plan wrote, “Recently a team of prominent health economists estimated that 20 million people nationwide would lose employer-sponsored insurance if the health care plan proposed by Senator John McCain were to become law (Buchmueller et al. 2008). This paper extends their analysis (published in the journal Health Affairs) by estimating the loss of employer-sponsored insurance in each state.” [Economic Policy Institute: McCain Plan Accelerates Loss In Employer-Sponsored Health Insurance A State-By-State Analysis, 9/26/08]

Over 582,000 Minnesotans Would Lose Their Coverage Under McCain’s Health Plan. In September 2008, the Economic Policy Institute, in their analysis of John McCain’s health care plan reported that up to 582,276 Minnesotans could lose their health coverage under McCain’s health care plan. [Economic Policy Institute: McCain Plan Accelerates Loss In Employer-Sponsored Health Insurance A State-By-State Analysis, 9/26/08]

McCain’s Health Plan Would Tax Employer Provided Health Benefits For The First Time. In October 2008, the Associated Press wrote, “McCain would have no mandate for universal coverage. He has proposed taxing for the first time employer-provided health benefits.” [Associated Press, 10/5/08]

The Average Cost For Employer Based Family Health Coverage Is Over $12,000. In a September 2008 release, the Kaiser Family Foundation stated, “Premiums for employer-sponsored health insurance rose to $12,680 annually for family coverage this year.” They continued, “Premiums rose a modest 5 percent this year, but they have more than doubled since 1999 when total family premiums stood at $5,791 (of which workers paid $1,543). During the same nine-year period, workers’ wages increased 34 percent and general inflation rose 29 percent.” [Kaiser Family Foundation release, 9/24/08]

McCain Said He Wanted To Deregulate The Health Care Industry, Just Like The Banking Industry. In October 2008, The Hill reported, “McCain said, ‘Opening up the health insurance market to more vigorous nationwide competition as we have done over the last decade in banking would provide more choices of innovative products less burdened by the worst excesses of state-based regulation.’” [The Hill, 10/4/08]

Public Policy Expert: It’s A Fair Presumption That Once Companies Don’t Have A Tax Incentive, They Won’t Offer Insurance Coverage For Their Employees Any Longer. In October 2008, the Detroit Free Press wrote of McCain’s health care plan, “Tom Buchmueller, a public policy professor at the University of Michigan who has examined the McCain plan, said Friday that it’s a fair presumption that once companies don’t have a tax incentive, they won’t offer insurance coverage for their employees any longer.” This would circumvent all state based laws that apply specifically to employer based health benefits. [Detroit Free Press, 10/5/08]

The McCain Health Plan Could Remove Mandatory External Review Of Insurance Company Decisions. Minnesota law protects the rights of individuals to have insurance companies decisions to deny them coverage reviewed by an independent agency. McCain’s plan could remove this right for more than 325,000 Minnesotans. [Families USA, June 2008; Kaiser State Health Facts, Accessed 10/6/08]

The McCain Health Plan Could Remove Mandatory Screenings For Breast, Ovarian And Cervical Cancer. Minnesota law currently guarantees access to breast, ovarian and cervical cancer screenings. McCain plan could cause Minnesotans to lose that protection. [Kaiser State Health Facts, Accessed 10/6/08]

The McCain Plan Could Cost Children Their Vaccination Coverage. Minnesota law requires insurance companies to cover the cost of child vaccinations. Under John McCain’s health care plan, this protection could be circumvented in the name of cost savings. [Kaiser State Health Facts, Accessed 10/6/08]

The McCain Health Plan Could Cause Women To Lose Easy Access To Their OB-GYN. Minnesota law requires insurance companies to access to routine OB-GYN services without a prior referral from the primary care provider. Under the McCain plan, this protection could be bypassed. [Kaiser State Health Facts, Accessed 10/6/08]

This entry was posted on Monday, October 6th, 2008 at 13:23 and is filed under Press Releases. You can follow any responses to this entry through the RSS 2.0 feed.