US Election Day: Obama, McCain & Health

Today the Americans will elect a new president.  The McCain vs. Obama debate has been raging for months, and there are certainly many facets for voters to consider.  Yet in the ongoing debate about how best to structure domestic health systems, it is worth noting the vast differences between the two candidates’ proposals. 

At the heart of the matter, the two policies rest upon differing ideological views.  Both candidates see health care as important and want to fix it.  They both claim to be interested in extending access and decreasing costs.  Their methodology, however, is vastly different.

Obama believes that increased regulation and government coordination of the health care industry will accomplish his goals.  He would regulate industry – forcing employers to provide a minimum standard of health insurance.  He would regulate insurance companies – forcing minimum plans and non-discrimination in terms of risk.  He would regulate individuals – by forcing them to purchase a minimum health care plan for their children (newly defined as up to age 25).  We can only imagine how lobbyists, corporations and interest groups will be able to influence the “minimum standards” of these plans. 

Moreover, the economics do not support Obama’s claim that this plan will actually reduce costs.  Forcing insurance companies to accept riskier clientele will raise the price for everyone, especially if younger, healthier people drop out of the system as prices rise.  Also, by further entrenching the cost of healthcare in an employer and government based system Obama’s plan separates cost from beneficiaries – preventing individual customers from making proper cost-benefits analyses.  This will most certainly make health care more expensive.

McCain’s plan, however, embraces choice.  Currently employers get a tax break for supplying insurance.  Instead of adding a mandate requiring employers to provide insurance or suffer a tax, McCain would pass the current tax break onto individuals so that they are no longer reliant on the employer-based system. It would increase individualized competition and make health insurance less expensive for the unemployed. This, in and of itself, places his system ahead of Obama’s.

A McCain presidency could have all kinds of consequences, and voters cannot judge on healthcare plans alone. But for those outside the USA, comparing the two plans is a useful exercise as we all search for better healthcare systems.

McCain’s plan isn’t perfect, but in comparison to Obama’s it is more likely to provide greater access and lower costs to medical care.