All Academic, Inc. Research Logo

Info/CitationFAQResearchAll Academic Inc.
Document

Health Reform Ideas in the Primeval Soup
Unformatted Document Text:  20 Strengths The tax credit idea has always been associated with expanding the use of private insurance, especially for those outside the employment group insurance market. To the extent some families find the cost of health insurance marginally beyond affordability, a tax credit may make a difference. The size of the tax credit and whether it is inversely scaled to income probably contributes to its efficacy. Tax credits provide maximum choice and flexibility to the consumer Because a tax credit represents lost revenue for the federal government rather than an on-budget expenditure, it appears to have less of a fiscal impact. This is an attractive feature for many conservatives. From the perspective of conservatives probably the greatest strength of the tax credit idea is the use of private insurance and the market to replace what otherwise might be an inevitable pressure to expand public programs. From the provider standpoint the danger of government intervention in the reimbursement process is diminished because the consumer is purchasing an insurance policy with government bureaucracy not engaged in the payment or regulation of health providers. Weaknesses Any examination of the individual insurance market as it is now organized gives one pause about the efficacy of tax credits as a means of reducing the number of uninsured. The tax credit idea presumes a fair market to purchase a private health insurance policy. Without significant and inflation adjusted tax credits that are refundable for those with little or no federal tax liability, it is hard to see a scenario in which this tool significantly reduces the uninsured. For those uninsured who have access to a standard policy at rates comparable to group insurance, a tax credit might render it affordable. However, for those with a history of health problems, those over fifty, and probably families rather than individuals a tax credit within the range usually discussed is not likely to be sufficient to reduce the premium cost to the affordable level. For some low-income families the cost of an insurance premium is not perceived only as the aggregate yearly cost. A tax credit is a retrospective payment by the government. Insurance premiums must be paid as the year progresses. A tax credit does not solve this cash flow element of an unaffordable premium. Most health policy experts doubt tax credits alone will be sufficient to significantly reduce the number of uninsured. One still needs up-front cash to purchase a policy. Summary The tax credit idea is a venerable contender in the health policy arena. The tax credit idea has grown from a marginal concept to a preferred policy tool for some. The advocacy coalition favoring a strong reliance on market mechanisms to allocate health resource find tax credits a way to level the playing field in the purchase of health insurance. It has become the preferred approach of conservative economists and Republicans because it utilizes the insurance market, and does not involve direct federal spending.

Authors: Brasfield, James.
first   previous   Page 20 of 40   next   last



background image
20
Strengths
The tax credit idea has always been associated with expanding the use of private
insurance, especially for those outside the employment group insurance market. To the
extent some families find the cost of health insurance marginally beyond affordability, a
tax credit may make a difference. The size of the tax credit and whether it is inversely
scaled to income probably contributes to its efficacy. Tax credits provide maximum
choice and flexibility to the consumer
Because a tax credit represents lost revenue for the federal government rather than an on-
budget expenditure, it appears to have less of a fiscal impact. This is an attractive feature
for many conservatives. From the perspective of conservatives probably the greatest
strength of the tax credit idea is the use of private insurance and the market to replace
what otherwise might be an inevitable pressure to expand public programs. From the
provider standpoint the danger of government intervention in the reimbursement process
is diminished because the consumer is purchasing an insurance policy with government
bureaucracy not engaged in the payment or regulation of health providers.
Weaknesses
Any examination of the individual insurance market as it is now organized gives one
pause about the efficacy of tax credits as a means of reducing the number of uninsured.
The tax credit idea presumes a fair market to purchase a private health insurance policy.
Without significant and inflation adjusted tax credits that are refundable for those with
little or no federal tax liability, it is hard to see a scenario in which this tool significantly
reduces the uninsured. For those uninsured who have access to a standard policy at rates
comparable to group insurance, a tax credit might render it affordable. However, for
those with a history of health problems, those over fifty, and probably families rather than
individuals a tax credit within the range usually discussed is not likely to be sufficient to
reduce the premium cost to the affordable level.
For some low-income families the cost of an insurance premium is not perceived only as
the aggregate yearly cost. A tax credit is a retrospective payment by the government.
Insurance premiums must be paid as the year progresses. A tax credit does not solve this
cash flow element of an unaffordable premium.
Most health policy experts doubt tax credits alone will be sufficient to significantly
reduce the number of uninsured. One still needs up-front cash to purchase a policy.
Summary
The tax credit idea is a venerable contender in the health policy arena. The tax credit idea
has grown from a marginal concept to a preferred policy tool for some. The advocacy
coalition favoring a strong reliance on market mechanisms to allocate health resource
find tax credits a way to level the playing field in the purchase of health insurance. It has
become the preferred approach of conservative economists and Republicans because it
utilizes the insurance market, and does not involve direct federal spending.


Convention
Need a solution for abstract management? All Academic can help! Contact us today to find out how our system can help your annual meeting.
Submission - Custom fields, multiple submission types, tracks, audio visual, multiple upload formats, automatic conversion to pdf.
Review - Peer Review, Bulk reviewer assignment, bulk emails, ranking, z-score statistics, and multiple worksheets!
Reports - Many standard and custom reports generated while you wait. Print programs with participant indexes, event grids, and more!
Scheduling - Flexible and convenient grid scheduling within rooms and buildings. Conflict checking and advanced filtering.
Communication - Bulk email tools to help your administrators send reminders and responses. Use form letters, a message center, and much more!
Management - Search tools, duplicate people management, editing tools, submission transfers, many tools to manage a variety of conference management headaches!
Click here for more information.

first   previous   Page 20 of 40   next   last

©2012 All Academic, Inc.