Presidential Candidates’ Health Reform Proposals Take Strikingly Different Paths, According to PricewaterhouseCoopers Health Research Institute Analysis
The leading Republican and Democratic presidential candidates are proposing two very different approaches to reform the U. S. healthcare system, according to an analysis released today by PricewaterhouseCoopers’ Health Research Institute
New York (PRWEB) November 20, 2007
The leading Republican and Democratic presidential candidates are proposing two very different approaches to reform the U. S. healthcare system, according to an analysis (http://www. pwc. com/extweb/pwcpublications. nsf/docid/FE1F5F272DE00D038525739400635686) (http://www. pwc. com/healthreform (http://www. pwc. com/healthreform)]) released today by PricewaterhouseCoopers’ Health Research Institute (http://www. pwc. com/extweb/pwcpublications. nsf/docid/BC26B0AC46AE856F852572C1005E6909) (http://www. pwc. com/hri (http://www. pwc. com/hri)]). Democrats promise broader and more immediate changes to decrease health care costs, improve quality and mandate coverage for the uninsured (http://www. pwc. com/extweb/pwcpublications. nsf/docid/FE1F5F272DE00D038525739400635686). The Republicans have similar goals but less detailed proposals that mostly rely on tax credits or incentives for individuals to purchase insurance without federal mandates.
Both parties’ plans will expand the federal government’s role in health care, drive growth in the private insurance market and affect consumer pocketbooks and business bottom lines in significantly different ways.
PricewaterhouseCoopers' report, entitled ''Beyond the Sound Bite: November 2007 Review of Presidential Candidates’ Proposals for Health Reform (http://www. pwc. com/extweb/pwcpublications. nsf/docid/FE1F5F272DE00D038525739400635686),'' offers an independent, nonpartisan analysis of candidates’ health proposals and how they would impact individuals, employers and the sectors within the health industries. A full copy of the report can be downloaded from http://www. pwc. com/healthreform (http://www. pwc. com/healthreform)].
“Health care will change in the next administration, and the implications will be enormous,” said Sandy Lutz, managing director, PricewaterhouseCoopers’ Health Research Institute. “But this is an incredibly complex issue. No plan is perfect and there will be trade-offs. The Republicans have chosen a different set of trade offs than the Democrats have.”
Changes in policy could dramatically alter the government's clout. The government's share of health spending has been steadily increasing, and it now pays for just less than 50 percent of all health care in the U. S. Current estimates indicate that more than half of all health spending will be government funded by 2017, but it may be even earlier due to expansions of government programs. For example, spending an estimated $100 billion to expand universal access would make 2011 the year when the U. S. will have a primarily government funded health care system.
Other key findings of the report are:
Both parties' approaches may have far reaching consequences for the insurance market with a huge boost to the individual market and some of the first cracks at the historically employer-dominated insurance system. Republicans want to grow the individual market through tax incentives and deemphasize the employer sponsored insurance market, while Democrats want to mandate individual and employer insurance. Either approach is likely to expand the existing private insurance market, which has seen minimal growth recently despite the introduction of tax-advantaged health savings accounts. All of the candidates are talking about decreasing cost and improving quality. Many health industry leaders believe that programs and tools such as comparative effectiveness, information technology and wellness programs are the best hope for improving the efficiency of our current system. However, none of the candidates wants to mandate the use of information technology, and only Senators Obama and Clinton have proposed additional government funding to accelerate adoption by hospitals. Democratic candidates’ proposals to control the cost of drugs, such as direct negotiation for Medicare drugs, drug reimportation (http://www. pwc. com/extweb/pwcpublications. nsf/docid/FE1F5F272DE00D038525739400635686) and bio-generics, have the potential to significantly affect the pharmaceutical industry, which currently accounts for about 10 percent of overall health care spending. All of the candidates have proposed tax law changes to pay for care of the uninsured, equalize the tax benefits of buying health insurance coverage or encourage consumers to purchase health care more appropriate to their needs. The crux of their differences is the candidates’ positions on the Bush tax cuts set to expire in 2010: The Republicans want to extend the tax cuts while the Democrats want to preserve some of them, and spend the rest on health care.
“The Democrats are talking and writing about health care far more than the Republican candidates. But more talk does not necessarily mean more substance. There are still many unanswered questions about the downstream impact of each plan,” added Lutz. “We think all stakeholders of healthcare, and certainly all our clients, need to know how those differences will affect them.”
The report covered candidates who averaged at least 10 percent in national polls for their party’s nomination: Hillary Clinton (D); John Edwards (D); Rudy Giuliani (R); John McCain (R); Barack Obama (D); Mitt Romney (R); and Fred Thompson (R).
About the PricewaterhouseCoopers Health Research Institute
PricewaterhouseCoopers Health Research Institute (http://www. pwc. com/hri (http://www. pwc. com/hri)]) provides new intelligence, perspective and analysis on trends affecting all health-related industries, including health care providers, pharmaceuticals, health and life sciences and payers. The Institute is part of PricewaterhouseCoopers’ larger initiative for the health-related industries that brings together expertise and allows collaboration across all sectors in the health continuum.
About PricewaterhouseCoopers
PricewaterhouseCoopers provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 146,000 people in 150 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.
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