Senator McCain’s Health Care Proposal Relies On High-Risk Insurance Pools

Senator McCain’s Health Care Proposal Relies On High-Risk Insurance Pools in Politics and Legislation

As the cost of health care continues to increase — along with the number of Americans without health insurance coverage — many will cast their ballots in November for the presidential candidate who they believe has the best solution.

Senator John McCain, the presumptive Republican presidential nominee, would use tax breaks, market competition, and high-risk insurance pools to reduce the number of uninsured citizens.

Under his sharpened plan, Senator McCain would get rid of the tax credits currently given to employers who provide health insurance, and give those credits to individuals buying a plan in the private market.

To be exact, individuals would get $2,500 (families get $5,000) for help purchasing a health plan on their own.

This would change the decades-old employer-based system in which most insured Americans get health coverage from their job.

Critics of his plan point out people with pre-existing health conditions would have trouble finding an affordable plan — or wouldn’t be able to get coverage at all.

To combat this problem, Senator McCain has proposed the Guaranteed Access Plan, which uses high-risk insurance pools to cover those with pre-existing conditions. The pools under McCain’s plan would offer “reasonable” monthly premiums and subsidize costs for the lowest earners.

According to Senator McCain’s chief policy advisor, Douglas Holtz-Eakin, the federal government will provide $7 billion to $10 billion for the pools, reported the Wall Street Journal (subscription required).

Not everyone agrees this approach will work. Some health care experts point out that high-risk pools frequently fail because of cost and McCain’s pools will be no different.

But the Arizona Senator points to the successful high-risk pool in Minnesota, which covers around 28,500 people and has been in operation for 32 years. Minnesota’s program will be the main model for the Guaranteed Access Plan.

“We need to make sure [those with conditions] get the high-quality coverage they need,” said Senator McCain.

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