Dennis & PattenParticipation in Government

Mepham High School

Health Care Reform in America

ACME Insurance Agency

• Private insurance policy is available to all for the following costs:

• Self-Employed: – Individual- $200/month– Family- $400/month

• Employer Contribution: – Individual- $50/month– Family- $120/month

• Decide whether or not you will purchase insurance.

• List reasons for and against purchasing insurance.

Discussion?

 • How might some of these issues be resolved?

President Obama and Healthcare Reform

“Health care reform is no longer just a moral imperative, it’s a fiscal imperative. If we want to create jobs and rebuild our economy and get our federal budget under control, then we have to address the crushing cost of health care this year, in this administration.”

~ President Obama, White House

Forum on Health Care Reform

Entitlement Programs

• Entitlements guarantee that Americans receive benefits by federal law.

• Entitlement programs are part of the federal budget labeled mandatory spending that must be funded by law.

The Healthcare Problem

• The rising costs of health care and health insurance pose a serious threat to the future fiscal condition of the U.S.

4% of GDP in 20096% of GDP in 201912% of GDP by 2050

The Healthcare Policy Dilemma

Policymakers will face difficult trade offs between two objectives:

1. Expanding insurance coverage WHILE

2. Controlling both total and federal costs for healthcare

Who Pays for Health Care?

Most Americans (85%) have some form of health insurance

Health insurance - any program that helps pay for medical expenses

Three general health care payment categories:

1. private insurance2. government programs3. uninsured

Private insurance

• Most Americans (59.3%) receive their health insurance coverage through an employer under group coverage

• Since 2001, family coverage premiums have increased by 28%, while wages have only increased by 16%

Government Programs

• 27.8% of Americans (83 million) are covered by government health care programs

• Federal law mandates public access to emergency services regardless of ability to pay

• Public Programs:1. Medicaid2. Medicare3. Other programs: State

Children’s Health Insurance Program (SCHIP), military system, veterans affairs

Medicare

• Provides health insurance for U.S. citizens over the age of 65

• Medicare is partially funded by payroll taxes a.k.a. F.I.C.A. tax

Medicaid

• Health insurance program for low income adults, children, and people with certain disabilities

• Means test is required

• About 60% of the poor are not covered by Medicaid

The Uninsured

There are millions of Americans who have

insufficient or no health care insurance

• 45.7 million (15.3% uninsured in America) • In 2007, nearly 70% of the uninsured

lived in families headed by a full-time worker

• 8.1 million uninsured children

Source: http://www.hr-onesource.com/ppt/01-patton_healthcare.pdf

Why Uninsured?

• Rising healthcare costs force many employers to drop employee health insurance

• Many working poor make too much to qualify for Medicaid, but can’t afford health insurance

• Unemployment• Some healthy people choose to go without

health insurance• Some rejected by insurance

companies because they have pre-existing conditions

• Results:Many don’t go to the doctor Increase in emergency

room care

Healthcare in the U.S.

Today

How do we improve our healthcare system?