CLINTON HEALTH PLAN.   Term Paper ID:20847 Click to get this paper

Essay Subject: Politics, economics, special interests, compared to Lyndon Johnson's 1965 efforts, taxes, public opinion, alternative plans.... More...

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Paper Abstract: Politics, economics, special interests, compared to Lyndon Johnson's 1965 efforts, taxes, public opinion, alternative plans. Paper Introduction: Americans will spend roughly $1.16 trillion in health care this year (Wood & Mackenzie, 1993, p. 25). The high costs are compounded by a profitable health insurance industry that in recent years has offered clients less protection from catastrophic medical bills. About 34 million Americans, or 14 percent of the population, lack any health insurance. As a presidential candidate, Clinton promised to introduce radical heath reform, and most Americans say they concur: recent surveys indicate that Clinton has the backing of 80 percent of the population for a policy that would guarantee universal access to medical care (Wood & Mackenzie, 1993, p. 25). The President's plan proposed that consumers be able to choose between a traditional fee-for-service plan, managed care, or health insurance. He wants employers to cover 80 percent of Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. The reason is that health reform is a realpossibility before the next election. 24.McClure, L. The cost of care.Macleans, pp. 64.McCloskey, L.L. Health reform: Moment of truth or delay?Financial World, p. There is no question that in the realm of health care reform,critical ethical choices must be made. 25). He held lengthy meetings in Washington and around thecountry with affected health care providers and others to seek their viewsand explain Administration intentions. Public support for reform is so universalthat the Republicans have to be players, not obstructionists (Dr. 12.Wood, C., & Mackenzie, H. Entering his presidency, Clinton inherited a $4trillion federal debt and a pressing need to reduce federal budgetdeficits. He is promotinga Canadian-style, single-payer scheme now backed by 89 House members (whicheliminates the private insurance industry and makes the government theuniversal insurer). Insurance reform, portable coverage, and a movetoward universal access are among the favored components of any slimmed-down plan (Borger, Cooper & Walsh, 1993, p. While public opinion favors the concept of major health care reform, thecurrent set of proposals was developed largely in private over a 9 -dayperiod by the experts in Hillary Rodham Clinton's White House Task Force onhealth reform. (1993, 27 September). Employers would not be asked to provideinsurance, nor would there be a required level of benefits. 18). The Chafee planbuilds on the current health care system, yet includes aspects of "managedcompetition" that will be the thrust of the Clinton plan. Whether managed competition willcontain the cost explosion that lies at the center of the crisis inAmerican health is far from certain (Wood & Mackenzie, 1993, p. 12). Another reason Clinton faces trouble is because the political climateis tougher than it was in 1965. (1993, 24 September). 25). Premiums would be fullyrefundable for the poor. About 34 millionAmericans, or 14 percent of the population, lack any health insurance. Only recentlyhas he and the First Lady reversed themselves and sought their input andsupport (Van Dyk, 1993, p. Trial proposals such as a value-added tax and a cap on tax deductions for health care benefits were quicklydefeated. For years, labor has been split into twocamps. 25). Even critics concede that the Clinton plan would ease the burden onAmericans who now lack medical insurance. 24-26.Garland, S.B., & Magnusson, P. In conclusion, Clinton's health care plan faces many obstacles.While public opinion is largely in favor of a major change in health care,there are many disagreements within Congress, the public, business andlabor, and the industry itself as to how this should proceed--which meansthat it may be some time before a comprehensive plan is implemented. Industry Week, p. His plancalled for employers to provide each employee with $3, to put into amedical savings account to pay medical bills (Just the beginning, 1993, p.64). (1993, 17 May). To accomplish the latter task, the President's economic planrelies more on tax increases than on spending cuts. After Congress did not agree to the tax hikes in Clinton's budgetplan, even economic policymakers knew they could not win a major revenueincrease to pay for the rich benefits. President Clinton, badly needingsupport, decided instead to publicly chastise doctors, drug companies,vaccine makers, and other key players in the health care sector in anapparent attempt to polarize general opinion against them. It is now concerned with three basic principles: cost containment,universal coverage, and quality care (McClure, 1993, p. However, it is easy for voters to be for health care reform,it is another matter to be for a plan that could cost jobs, limit consumerchoice, impose unworkable price controls, and expand government controlover a huge sector of the economy. LBJ needed littleRepublican or business community support to pass his program, but he soughtit nonetheless. Furthermore, one other option that many wantconsidered is taxes on cigarettes and alcohol. The principaldeparture from a similar plan last year is that Chafee's proposal calls forpurchasing cooperatives for companies with fewer than 1 employees. The messages also called for labor-law reform anda renegotiated free-trade agreement. In addition, most everyone questions the proposal'sfinancing mechanisms. 44.Dr. The President's plan proposed that consumers be able to choosebetween a traditional fee-for-service plan, managed care, or healthinsurance. Unlike the Clinton plan, they would not bargainwith providers. They donot see the battle for the single-payer system as being over. Many economistsbelieved that Magaziner's financial assumptions were shaky. Dissident Democrats, having their own proposals, havealso held back. The maximum out-of-pocketexpenditure: $1,5 per individual or $3, per family (Just thebeginning, 1993, p. Unions, such as the Teamsters; the Oil, Chemical, and Atomic Workers;and the Communications Workers of America do not agree with Saltz. President Clinton, conversely, was elected with only 43percent of the vote. Business Week, p. National Review, pp.16, 18.Just the beginning. 44). In addition, the budget battle kept economicadvisors from spending time on the health plan. (1993, 27 September). ReferencesBorger, G., Cooper, M., & Walsh, K.T. 1 ). In fee-for-service plans, thePresident proposes that patients pay 2 percent of charges--after a $2 individual or $4 family deductible. 25). Yet the GOP does not have a cohesive plan. health care is among the best in the world. How Clinton'shealth plan got that way. Buzz words or principles?Commonweal, p. The economistsappear to have lost this point because the President's proposal essentiallyignores their objections. He needs Republican support to pass major legislationand must find ways to attract it. The Republicans while announcing alternative plans, are careful tosay no lines have been drawn against the President's plan (Borger, Cooper &Walsh, 1993, p. Furthermore, despite entreaties from White Houseofficials, the Council of Economic Advisors chair Laura D'Andrea Tyson andothers remained reluctant to testify to Congress that the plan would boostjob growth. 26). Even among Republicans, the idea of health care reform has becomepopular. He wants employers to cover 8 percent of health care premiumcosts, employees 2 percent; and he wants patients to pay no more than $1 per doctor visit in the managed care plan. Magaziner to formulate the President's plan. Nevertheless, leaders of groups, such as the powerful AmericanAssociation of Retired Persons, appear to be supporters of general reformbut not of the Clinton plan. (1993, June). There is another big political difference from 1965: public opinionthen favored major new federal programs to address a long-deferred domesticagenda. There were many forces that shaped itsdevelopment, and from the beginning, Clinton's health care plan was markedby delays and infighting. Price controls were dropped, but manyeconomists regarded the caps on insurance premiums as almost as harmful.The requirement that businesses pay 8 percent of health care premiums washardly debated and survived unchanged (Garland & Magnusson, 1993, p. The Clintons are determined to have some kind of plan and theirtarget for its passage is a half dozen moderate GOP senators who mightsupport a compromise. There is, therefore, almost no public understanding of thespecific changes contemplated or their impact on people's day-to-day lives(Van Dyk, 1993, p. The Great Society legislation followed alandslide victory of Johnson over Senator Barry Goldwater the previousNovember. One possible convert is Arlen Specter ofPennsylvania, who has stated that his approval would come only on a muchless ambitious plan. Currently, theproposed tax increases total $265 billion over the next five years.Estimated costs of the new Clinton health plan begin at $5 billion overthe same period. 44). 64). To cover bills above $3, , companies would pay $1,5 per employeefor catastrophic insurance. Conservatives like TexasSenator Phil Gramm will offer their own bill which will incorporate lessgovernment control and they will aggressively pursue its passage. Americans will spend roughly $1.16 trillion in health care this year(Wood & Mackenzie, 1993, p. Although Magaziner defended his numbers, maintaining that he hadthe approval of many economists because he documented "huge amounts ofwaste" in the system--as well as providing for subsidies for smallbusinesses to encourage job growth--many believe Congress will not assentto his plan. Moreover, the plan carries no employer mandates (Just thebeginning, 1993, p. Economists, however, feared that the cost toemployers of workers' coverage would kill jobs. 25). There has been such a dearthof energy on labor's side for so long that some compromises have been madejust to try to have something in return--a situation that Urman deplores(McClure, 1993, p. Power in the Congress is more diffuse today than in 1965, makingdelay more certain. While small business and the insurance industry haveopenly challenged the Clinton plan, many special interests with potentiallyhuge problems have not. 12). Healingwords, looming battles. One of the most politicallydifficult choices, that of medical rationing, was not mentioned in thePresident's plan. SenatorJohn Breaux and Representative Jim Cooper, both moderates, are introducingbills more tilted to private markets. Eventually, Clinton approved the Magaziner proposal nearly intact,with a slightly longer phase-in. 64). Asa presidential candidate, Clinton promised to introduce radical heathreform, and most Americans say they concur: recent surveys indicate thatClinton has the backing of 8 percent of the population for a policy thatwould guarantee universal access to medical care (Wood & Mackenzie, 1993,p. 26). Thesecooperatives would merely certify providers of health care services andwould serve as brokers. However, by promoting the Chafee plan theseconservatives are embracing an extensive government role as well as theprincipal of universal coverage--moving the Republicans moved closer toClinton and acknowledging the reality that the GOP lacks credibility onhealth care (Borger, Cooper & Walsh, 1993, p. To ease the transition, the President proposed a roll-out by statesno later than 1998, and a tax exemption during the eight-to-1 -yeartransition period for employers who offer health benefits that exceed thosespecified in the proposed plan, or those with health care plans negotiatedin collective bargaining that exceed the basic package. Objectionswere made to price controls, and that Congress would not cut so deeply intoMedicare and Medicaid. The power of congressional leaders and committee headsis far less than their counterparts enjoyed 3 years ago. Some conservative and moderate Democrats feel the same way. Organized labor is another large group that must be won over to anyuniversal health care plan, and currently, it is divided on health carereform (McClure, 1993, p. The President pulled back from seeking newrevenues to fund health care, after the budget fight underscored publicdisdain for new taxes. They worried that theplan, based on what they called overly optimistic cost projections, wouldincrease the deficit (Garland & Magnusson, 1993, p. They arguedthat the plan was too generous and needed a longer phase-in. Gridlock and Mr. Hyde. President Johnson enjoyed massive Democratic majorities in bothHouse and Senate. 26). In fact,according to Teamster Bill Urman, his union has recently collected 2 , "Teamstergrams" from members urging President Clinton to support a single-payer health care plan. For months, Clinton's health and political aides insisted on stickingwith the President's campaign promise to provide coverage to all Americanswithout a broad tax increase. (1993, 2 September). Companiescurrently providing coverage would have to turn over to employees the cashvalue of the premiums. Forone thing, few Americans appear willing to forgo the dramatic but vastlyexpensive medical advances that underpin the frequently expressed boastthat U.S. For example, Senate Minority Leader Bob Dole, never afraid tobattle with Clinton, backed a measure crafted by moderate John Chafee ofRhode Island that avoids much of the regulation in the Clinton plan andrequires individuals, not employers, to pay for coverage. Many big industrial and service unions supported a Canadian-stylesingle-payer plan, while construction unions and others backed plans thatmaintained continued employer-based, private health insurance. Rush to compromise. Furthermore, life-long political and unionactivist Tony Mazzocchi of the Oil, Chemical, and Atomic Workers observedthat he has never seen people in the labor movement want to conform likethey do today. 12). (1993, 8 June). Indeed, the drive for Republican conciliation--less apparent in theHouse--is based on the perceived need to "get to the table" with thePresident on health care reform. With Hilary Clinton distracted by the death of her father, the planwas left to Ira C. AFL-CIO spokesman David Saltz insists that rift is over now, sincesingle-payer versus managed competition is not the criterion anymore withinlabor. (1993, 2 September). Furthermore, President Clinton has chosen a strategy ofconfrontation; President Johnson sought consensus. Clearly, the economy cannot continue to grow under theburden of that many new taxes in that short a time. Nobody wants to alienate theClintons now because they want to be on the winning side when the deals getmade. The proposalswill be examined by at least a dozen committees in the House and Senate.Each will seek changes, and since 1994 is an election year, it is possiblethat no congressional action will be taken on this since members will beanxious to dodge contentious issues (Van Dyk, 1993, p. Heaggressively pursued the untested idea that squeezing inefficiencies out ofthe health care system could generate huge savings. The Progressive, pp. The high costs are compounded by aprofitable health insurance industry that in recent years has offeredclients less protection from catastrophic medical bills. 12). Liberals like Representative Jim McDermott of Washington State saythe Clinton plan does not accomplish as much as it should. 25). This plan wouldalso have individuals buy their own health insurance, but would enable themto do so through the use of tax credits. However, in the view of an aide to Hillary Clinton, theadministration needs to prove its credibility in containing overall healthcare costs before even discussing whether some forms of medical care areworth the limited benefits they provide (McCloskey, 1993, p. Public opinion today is less hospitable to federal activism and,as in the 198 s, continues to favor cuts in government taxing and spending. U.S. One of them is that the economy is chancier today than it was in1965 (Van Dyk, 1993, p. When President Clinton went before a joint session of Congress tolaunch his health care reform plan in September, 1993, his audacity wonapplause, but that was not enough to stifle the continuing dissensionwithin the administration over the shape and cost of the plan (Garland &Magnusson, 1993, p. 22-25.Van Dyk, T. 24-25.----------------------- 12 While President Clinton's long-awaited health care reform proposalsare the most important since Medicare and Medicaid became law in 1965,there are a variety of reasons why the he faces an uphill fight on healthcare. Urman states that he understands how some unions and the AFL-CIO areinclined to look for compromise with Clinton. Other conservatives believe that a proposal offered by the HeritageFoundation, a Washington think tank, makes greater sense. News & World Report, pp. Gridlock,1993, p. They object to Clinton's limits oninsurance premiums and they dislike what Cooper calls the "huge andunfunded new entitlements"--coverage of prescription drugs for the elderly,new benefits for early retirees and the disabled, and subsidies for smallbusiness to help defray insurance costs (Borger, Cooper & Walsh, 1993, p.26). 44). President Lyndon Johnson's Great Societylegislation of 1965 was considered in an environment of robust economicgrowth and low public debt and therefore, was passed by a large margin.The Clinton proposals, by contrast have been formulated in a period of slowgrowth and high debt. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.

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