Both Democratic and Republican presidential candidates agree that there is a problem to be fixed in America regarding accessibility to health insurance coverage. The main strategies for each political party to achieve health insurance access differ on three major points. Interestingly, two major similarities underlie these seemingly disparate approaches. (Actually, there is also a third similarity that will come into play after the election: passing all these policies into law.)
Understanding the basics between the two political parties' overall approach to this issue is key. It is important to note that the basics presented here for each political party do not apply as an absolute to each candidate; each party candidate has variations to the methods proposed to achieving change.
The main differences as I see it are threefold. The first is the concept of whether or not to mandate health insurance coverage (i.e., health insurance would be required by law). The second difference is the concept of whether or not to create a federal health insurance plan that all Americans (or their employers) would pay into. The third is employers must offer health insurance coverage to their employees.
The two similarities underlying both approaches are to create a competitive marketplace for health insurance companies to sell their services; and, to pass new health insurance transparency laws (i.e., clear and public access to the insurance companies' fine print to show what they cover, do not cover, what the premiums pay for [medical versus administrative costs], quality-driven care incentives, etc., for more informed choices by the consumer).
The Democratic candidates lean toward mandating health insurance coverage and creating federal health insurance plan options comprised of both public and private companies. Democratic candidates believe that if Americans have to have insurance, this will induce marketplace competition (not entirely unlike car insurance and all the competitive ads we see on TV). Further, by requiring employers to offer health insurance to employees, this increases their participation in the marketplace. Subsidies and/or tax credits would be given to families who could not otherwise afford to pay for insurance premiums. The federal government will maintain/contain insurance company premiums and improve coverage options.
The Republican candidates do not endorse mandating health insurance coverage or federally-run insurance health plans (other than Medicare, Medicaid and the SCHIP). Rather than pay into a federal system for health insurance options, and then pay for a premium on top of that, Republicans propose substantial tax deductions to individuals and families for their yearly health insurance premiums (running in the area of $2,500 per individual to $5,000 per family). By utilizing this strategy, the idea is to promote marketplace competition by allowing individuals and families to choose their own health insurance rather than only having the option to go through their employer. If Americans get their health insurance premium monies reimbursed, they are free to "shop" for the best service. Competition in insurance costs and benefits would be generated through consumer-driven forces without federal containment measures.
