Coalition for Affordable Health Coverage
Working Together for America's Uninsured
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Plan StatusOngoing advocacy.Number of People CoveredSeeks to make health care affordable to as many Americans as possible.Estimated CostNot addressed.
Payment Scheme CAHC advocates market-based solutions for the benefits of choice and competition. The coalition believes individuals can get financial support to purchase health coverage via tax credits and deductions, Health Savings Accounts, and high-risk pools. |
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Plan in Brief
- CAHC is a broad-based coalition that supports market-based options to make health care affordable to as many Americans as possible.
- Members come from the insurance and pharmaceutical industry, physician groups, business groups, consumer groups, and more.
- CAHC believes that because there are varying reasons why people do not have health care coverage, varying solutions will be needed.
- Advises government on measures to make health care affordable.
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Impact on Federal Government
- CAHC favors private solutions over expanding government-funded programs.
Impact on States
- Supports flexible uses of Medicaid and the State Children’s Health Insurance Program so that states can experiment with public-private partnerships.
- Supports renewing funding that states can use to create high-risk coverage pools.
Impact on Insurers
- Supports private health care coverage.
- Believes that a variety of offerings allow individuals to buy the right coverage for their needs.
Impact on Providers
Impact on Employers
- Small employers that contribute to employees’ Health Savings Accounts would get tax credits.
Impact on Individuals
- Promotes Health Savings Accounts and making these accounts tax-deductible.
- Supports tax credits or deductions for individuals and families to purchase private insurance.
- Self-employed individuals could deduct premium costs.
- Funds in individual employees’ Federal Savings Accounts and Health Savings Accounts would roll over if not used, rather than expiring.
Proponents/Opponents
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Proponents say that affordability is the chief reason that many people are uninsured or underinsured and that tax credits are the best way to put insurance within their reach. They also say that allowing individuals to choose their coverage—and to receive support to do so—will foster better use of health care resources.
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Critics say that tax credits are not sufficient to make quality health care really affordable for all. Additionally, the CAHC plan does not guarantee coverage for all, address the quality of health care, or address the growing overall costs of health care.
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Key Targets for InvestmentPrivate insurance packages offering varying options.HSAs in various forms, including interest-earning accounts and mutual funds.
Notable Feature
- Supports market-based approaches and the private insurance agency.
- Does not support guaranteed issue.
- Advocates tax credits as the most useful approach to making health coverage affordable.
- Points out that understanding the composition of the uninsured population is important to understanding the magnitude of the problem and designing
solutions—for instance, CAHC notes that counts of the uninsured in each year typically include individuals who are uninsured temporarily between jobs, not for the entire year.
Experts' Comments“If the federal tax code were changed to provide direct tax relief to individuals and families, they would have the ability to select the health insurance that they want and need--whether obtained through their employer or a different organization. More patients would become price-sensitive, and health plans would be incentivized to provide value for money. Employers and government officials are no substitute for individuals when it comes to making health care decisions. Patients can make decisions that reflect their true preferences and optimize their utility. Therefore, tax credits would facilitate the creation of a patient-centered system of personal choice and value-based competition. This would introduce a new economic efficiency into the system and thus control costs in a rational fashion.”- Greg D’Angelo, The Heritage Foundation, November 28, 2007.
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Interest Groups 
