Federation of American Hospitals
Health Policy and Advocacy Organization |
Plan StatusProposed.Number of People Covered98% of Americans.
Estimated CostAn increase in Federal Cost by $133 billion (by 2010).Payment Scheme Current insurance market (with employer-based plans, individually purchased insurance, and public programs) expands. Federal government picks up bulk of extra cost. Private employers will pick up some cost. States and insured households will have health care coverage costs decrease. The overall (Federal government, states, employers, and households) difference between cost incurred and savings benefit is estimated to be $68 billion. |
 |
Plan in Brief
- FAH is the national representative of investor-owned or managed community hospitals and health systems throughout the United States.
- Medicaid and SCHIP are expanded and strengthened.
- New Health Coverage Passports (HCPs) cover all or part of health insurance premiums for those below 400% of Federal Poverty Level.
- Premiums on private insurance purchased in the individual market are tax deductible.
- People currently enrolled in employer coverage or public programs keep their coverage.
- The uninsured are enrolled when they file tax returns or seek health care.
- Insurance plans are held to the standard of federal employees’ plan.
|
Impact on Federal Government
- New federal costs for expanding Medicaid and SCHIP, creating and funding HCPs for employer and private plans, tax-deduction for private plans = $133 billion.
Impact on States
- Should save $17.9 billion by 2010
- States will implement full benefit plans similar to federal employees’ plan.
- To minimize adverse selection, states will implement risk adjustment.
- If a state does not offer the plan, the federal government will offer it on their behalf.
Impact on Insurers
- The private, non-employer insurance market would to increase from 9 million to 36.7 million Americans in 2010.
- Insurers would have to issue every applicant a policy (guaranteed issue).
- Insurance plans must all be comparable to federal employees' plan.
Impact on Providers
- Relieves hospitals of financial burden of providing health care to the uninsured.
Impact on Employers
- Increase in cost by $4.7 billion (in 2010).
- HCPs cover a portion or full cost of the cost of employer-based premiums.
Impact on Individuals
- Families already insured will pay $35.1 billion less overall, because of less uncompensated care.
- Individuals with non-employer, individual health insurance market plans would qualify for a tax deduction or HCPs to cover all or part of their premiums.
- Individuals with employer health insurance plans may qualify for HCPs to cover a portion or full cost of premiums based on income.
Proponents/Opponents
|
Allies of the FAH, such as AdvaMed, believe that building up from the current employer-based system is the best way to achieve change without disruption.
|
Many experts believe, however, that a large part of the cost of care is due to the fact that medical care is uneven – non-standard – across the United States and that standards of care and other tools like pay-for-performance are vital to achieving real cost control.
|
|
Key Targets for InvestmentSubsidizing insurance for the poor, including illegal immigrants.
Notable Feature
- One of only plans addressing ways to pay for health care for uninsured illegal immigrants (20% of the uninsured today): Proposes more federal funding to cover care of undocumented immigrants not eligible for public programs.
Experts' Comments“We, in essence, have become the insurers of the uninsured,"
-- Victor L. Campbell
Past Chairman, Federation of American Hospitals
and Senior Vice President
Hospital Corporation of America
|
For Further Information
Federation of American Hospitals' Health Coverage Passport Plan
|
|
|
Interest Groups 
