In an article in the May-June 2008 issue of Health Affairs and an accompanying issue brief, Commonwealth Fund researchers lay out a plan that would insure 44 million of the estimated 48 million uninsured Americans in 2008. The proposed approach could save $1.6 trillion over 10 years if it is coupled with efforts to reform how the United States pays for health care, invest in better information systems, and adopt initiatives to improve public health.
The “building blocks” plan would preserve employer-sponsored health insurance, Medicaid, and the State Children’s Health Insurance Program, and build on the existing success of the Medicare program by offering a Medicare-like option along with a choice of private health plans through a national health insurance “connector.” The insurance connector would be open to small businesses, the self-employed, and everyone without large employer insurance or Medicare. The premiums for the new Medicare option, called Medicare Extra, would be an estimated $259 per month for individuals and $702 a month for families, 30 percent less than the average premiums currently charged to employers. The plan to expand health insurance coverage would cause minimal disruption for people satisfied with their current coverage, and any decisions to switch to the new coverage would be voluntary.
“This approach builds on group insurance coverage and the national reach of Medicare and at the same time addresses the high administrative and premium costs for individuals and small groups,” said Commonwealth Fund president and article co-author Karen Davis. “It also demonstrates that it is possible to buy more for our healthcare dollars, cover all Americans with high-quality insurance, and institute real reforms to stem rising healthcare costs, saving $1.6 trillion over 10 years.” Read the abstract.
