U.S. Rep. Pete Stark, D-Calif., announced on Tuesday a bill to provide universal medical insurance for all U.S. residents beginning in 2010. Under the AmeriCare Health Care Act, individuals would receive coverage through either their employer or a program modeled on Medicare. Employers that do not offer health insurance for workers would be required to contribute 80% of the premium for AmeriCare coverage for full-time employees and a prorated portion for part-time workers. Premiums would be kept affordable, according to Stark, by using Medicare’s administrative infrastructure and by large-volume discounts. AmeriCare would also require the secretary of the Department of Health and Human Services to negotiate with the pharmaceutical industry for affordable prescription drug prices and expand the use of health IT. Cost-sharing would be subsidized for those who earn between 200% and 300% of the federal poverty level, and others would pay a $350 deductible for individuals and $500 for a family plus a 20% copay up to a maximum of $2,500 per individual and $4,000 per family.
AmeriCare would initially cost $50 billion to $60 billion annually, but Stark maintains that cost savings would soon emerge as currently uninsured individuals begin to seek early medical treatment instead of waiting until they have intractable problems, reports the San Francisco Chronicle. Stark’s bill is endorsed by the AFL-CIO, Consumers Union, and the American Pediatrics Association. “Everyone should benefit from this bill, with the exception of the bankruptcy bar and collection agencies,” said Stark.
