McCain's Medical Plan Won't Cure the Medical System

Part of the John McCain medical plan is a tax credit.

This tax credit will be given to tax payers that purchase their own medical insurance.

The purchase of their own coverage would be brought about because if they don't buy their own coverage they will be taxed on the in-kind value of the employer based medical plan they now receive.

So, something you now have that is working well for you ( a large group medical plan) will become something that will Not work because you will now have a greater tax burden if you don't change plans ....

A couple of problems with this;

Does this mean that he is guaranteeing portability. That anybody that is now getting medical coverage on their large group plan will be able to call up an agent and simply purchase a New policy? That there will be No possibility of a new policy being denied regardless of the medical condition that this taxpayer now has. If Not there will be some that must stay with the old ( now becoming smaller ) group. By staying with this old group there will be additional taxes due for the value of the group plan they the receive coverage through. And, when groups become smaller....rates go up.

Then there is the Health Savings Account complication. Currently HSA policies are an option in the world of medical insurance . They make tremendous sense. You purchase, you save on taxes, you get to build up a fund to use to pay medical expenses (tax deductible), over time your fund earns interest that is tax deferred,and you win. The complication is that it is a very tough sell. Maybe some find it too complex,maybe the high deductible medical plan that come with the HSA turns people off or just that it is different...people won't buy it.Even though it makes tremendous good sense. McCain's plan has some similar "good sense" aspect but folks are going to screw it up and end up out in the cold.

It might be because of one thing or another ...but this tax your health plan benefits , tax credit for purchase of your own plan is not consumer /taxpayer friendly.