">Forum Views ()
">Forum Replies ()
Read more with google mobile :
Upfront costs complicate Obama's health care plan
Yahoo!
My Yahoo!
Mail
Yahoo! Search
Search:
Sign InNew User? Sign Up
News Home -
Help
Navigation
Primary Navigation
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Top Stories
Most Popular
Secondary Navigation
Africa
Europe
Latin America
Middle East
North America
Search
Search:
Upfront costs complicate Obama's health care plan
By RICARDO ALONSOZALDIVAR,Associated Press Writer AP - Monday, May 11
WASHINGTON - Costs are emerging as the biggest obstacle to President Barack Obama's ambitious plan to provide health insurance for everybody.
ADVERTISEMENT
The upfront tab could reach $1.2 trillion to $1.5 trillion over 10 years, while expected savings from wringing waste and inefficiency from the health care system may take longer to show.
Details of the health legislation have not been written, but the broad outlines of the overhaul are known. Economists and other experts say the $634 billion that Obama's budget sets aside for health care will pay perhaps half the cost.
Obama is hoping the Senate comes up with a bipartisan compromise that would give him political cover for disagreeable decisions to raise more money, such as taxing some health insurance benefits. In the 2008 campaign, Obama went after his Republican presidential rival, Arizona Sen. John McCain, for proposing a large-scale version of that idea.
Concerns about costs could spill over in the coming week when the Senate Finance Committee holds a hearing on how to pay for coverage. Committee leaders hoping to have a bill before the full Senate this summer must first convince their own members that it won't break the bank.
"You go to a town meeting and people are talking about bailout fatigue," said Sen. Ron Wyden, D-Ore. "They like the president. They think he's a straight shooter. But they are concerned about the amount of money that is heading out the door, and the debts their kids are going to have to absorb."
Sen. Mike Enzi, R-Wyo., said cost control has to come ahead of getting more people covered. "Unless we halt skyrocketing health care costs, any attempt to expand coverage will be financially unsustainable," he said.
Obama wants to build on the current system in which employers, government and individuals share responsibility for health care. He says his plan would make health insurance more affordable, particularly for small businesses and individuals. The government would subsidize coverage for low-income people and some in the middle class.
The U.S. spends about $2.5 trillion a year on health care, more than any other advanced country. Experts estimate that at least one-third of that spending goes for services that provide little or no benefit to patients. So theoretically, there's enough money in the system to cover everybody, including an estimated 50 million uninsured.
But one person's wasteful spending is someone else's bread and butter.
The office visits, tests, procedures and medications that the experts question represent a lot of money for doctors, hospitals, drug companies and other service providers. Dialing them back won't be easy. Providers will resist. Patients might complain their care is getting rationed.
The chairman of the Senate Finance Committee, Sen. Max Baucus, said "it's clear that the financing of this is not going to be easy." Baucus, D-Mont., says the basic approach to health care must become more economically efficient.
Instead of paying doctors and hospitals for the number of services they provide, as happens now, Baucus wants to tie reimbursement to the quality of care. Quality would measured by standards that doctors and hospitals have a hand in shaping.
Yet those kinds of changes take time, several years or even the better part of a decade.
The money to cover the uninsured will be needed right away, about $125 billion to $150 billion a year.
That leaves hard choices for lawmakers and Obama.
Baucus favors requiring individuals to get health insurance, which will help. But he also supports subsidies for people who can't afford coverage _ a cost to the government.
To help close the money gap, Baucus is open to some limits on the current tax-free treatment of employer-provided health insurance.
Health benefits are considered part of an employee's compensation, but are not taxed. If all health insurance were taxed like regular income, the government could raise an additional $250 billion a year.
In the campaign, Obama opposed tampering with tax-free employer-based health care, saying it would undermine the system that delivers coverage to most people. Other prominent Democrats agree. Asked if he would support taxing benefits, Rep. Charles Rangel, D-N.Y., the top tax-writer in the House, simply said: "No way!"
Baucus says doing away with the tax break altogether would cause harm, but some limitations might curb waste in the system. Obama's aides say he's still opposed, but willing to consider any serious proposals from Congress.
Obama's opposition to taxing employer-provided health insurance isn't the only campaign position he might have to jettison to pay for health care.
He once criticized his chief Democratic presidential rival, Hillary Rodham Clinton, for proposing that everyone in the U.S. be required to have medical insurance. Yet such a mandate probably will be in what Congress puts together because requiring individuals to pay would lower federal costs.
For Obama, there are no easy ways to pay for health care. Options include raising other taxes, cutting deeply into Medicare payments to providers, or phasing in the expansion of coverage for the uninsured _ beyond his four-year term.
___
Associated Press writer Erica Werner contributed to this report.
___
On the Net:
Senate Finance Committee: http://finance.senate.gov/
White House health care agenda: http://www.healthreform.gov
Email Story
IM Story
Printable View
Blog This
Sign in to recommend this article »
0 users recommend
Related Articles: World
Obama aide: All options on table for closing GitmoAP - 1 hour 17 minutes ago
Syria criticizes renewal of US sanctionsAP - 1 hour 20 minutes ago
35 killed in Somalia fighting over the weekendAP - 1 hour 38 minutes ago
Weather puts wet blanket on destructive Calif fireAP - 1 hour 40 minutes ago
US, Costa Rica report swine flu deaths; toll at 53AP - 1 hour 59 minutes ago
Most Popular – World
Viewed
Obese young men have less hope of marriage: study
British store admits it boobed in bra row
Geithner's warning on speed of economic recovery
Australian zoo evacuated after orangutan escape
Court okays breast removal for transsexual teen: report
View Complete List »
Search:
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Top Stories
Most Popular
Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved.
Privacy Policy
- Terms of Service
- Community
- Intellectual Property Rights Policy
- Help
Other News on Sunday, 10 May 2009 Gunships and planes strike Pakistan Taliban in Swat
| International
|
U.S. forces shoot Iraqi boy dead after grenade attack
| International
|
Bomb blast kills 5 in southeast Turkey
| International
|
Guinea forces fire on rioters in capital
| International
|
Mali pursues al Qaeda suspects in north: source
| International
|
Bomb kills seven Afghan workers: police
Pakistanis flee Swat as offensive intensifies
| International
|
Critics warn US air strikes bolstering Taliban
Pope to visit site of Jesus' baptism in Jordan
| International
|
Zuma to announce South African cabinet on Sunday
| International
|
U.S. forces shoot Iraqi boy dead after grenade attack
Venezuela oil takeovers may leave 22,000 jobless
Iraqi leader calls for anti-corruption campaign
New flu kills U.S. man, spreads to Australia, Japan
| International
|
After stress tests, banks seek to shed US aid
Bomb blast kills 5 in southeast Turkey
Tycoon to continue Mia Farrow Darfur hunger strike
Pope in Israel seeks closer Jewish-Catholic bond
Argentina's Kirchner to run for Congress
| International
|
$70-80 good price for oil: French economy minister
Pope disappoints Muslim leaders
Fiat boss evokes 'difficult decisions' in Opel takeover
Turkey has no plans to abolish rural militia
Race for Iran presidency hots up
More Severe Weather Expected For Midwest
White House Aide Resigns Over New York Flyover Controversy
US terror suspects subjected to sleep deprivation
Most Santa Barbara Wildfire Evacuees Allowed To Return Home
Snake's Head Found In Side Order Of Veggies At TGI Fridays
Cleanup begins after Midwest storms killed 6
Body Found May Belong To Georgia Professor Wanted For Triple Homicide
Huge fire after Moscow gas pipeline blast
U.S. Air Traffic Control System Vulnerable To Attack, FAA Investigators Say
Cuban parliament president dismisses Obama
Boston Trolley Driver Texting Girlfriend When He Crashed Into Another Trolley
Small plane crashes in northern Nevada, 5 killed
Jury Acquits Mine Owner Of Knowingly Exposing Residents, Workers To Asbestos
Prof wanted in killings found dead in Ga. woods
Texas Couple Arrested For Shooting At Passing Vehicles, Wounding 4 People
NH toddler left alone on school bus for 45 minutes
Afghan President, U.S. Military Differ in Death Count From U.S. Air Strikes
RI gas explosion injures 6 firefighters, 1 officer
Wildfire evacuees longed for home, even the weeds
Cell phone ban may follow Mass. trolley crash
Japanese Prince Akishino off on European tour
Japan confirms fourth case of swine flu
Weather forecast for the Asia-Pacific region
Swine flu death toll tops 50
From exile, Kadeer steps up Uighur cause
Navy sinks Tiger boats as S. Lanka troops advance
Yao to miss rest of NBA playoffs with broken foot
India's Rahul Gandhi: dynastic political heritage
Badminton Sudirman Cup all about second place
Japan minister defends stimulus spending package
Desperation in Pakistani hospitals, refugee camps
Talks between Diageo, United Spirits still on: report
Bangladesh growth seen at nearly 6 pct
Fido, frequent flier, gets his own airline
Do-it-yourself wine comes to Bordeaux country
Chance for Obama to jab at DC's establishment
Wounded soldier finishes London Marathon
Funny man Fallon a college graduate after 15 years
HBO series details Alzheimer's pain, progress
Indonesian president's party name election winner
Pro-cannabis protesters gather in Amsterdam
Indonesian president's party named election winner
Comedy not just a laughing matter, TV execs discover
Indonesia releases general elections results: report
`Star Trek' boldly goes to $31M at box office
First Asian tour group in post-Saddam Iraq
Sri Lanka, Tamil Tigers trade blame for civilian deaths
| International
|
NATO war games hinder U.S.-Russia ties: Putin
| International
|
South Africa's Zuma moves Manuel to powerful new role
| International
|
Afghan students protest against civilian casualties
| International
|
Australian zoo evacuated after orangutan escape
Russia's Putin warns against arms race over N.Korea
| International
|
Georgia's Saakashvili to meet opposition
| International
|
Clashes kill at least 65 in Somalia in 3 days
| International
|
Philippine typhoon death toll rises to 36
Petraeus: Taliban threaten existence of Pakistan
Obama aide: Seems no one knows bin Laden's status
Jones: Airstrikes remain part of Afghan strategy
Syria criticizes renewal of US sanctions
Google prime target for regulators
Petraeus: al-Qaida not operating in Afghanistan
Upfront costs complicate Obama's health care plan
US-Russia relations hurt by NATO war games: Putin
Iran court hears appeal by jailed US reporter
Chadian troops 'have defeated rebel forces'
Obama the star at reporters' annual dinner
Lawyer defends jailed US reporter at Iran court
Credit crunch dulls glitz of Cannes festival
| Entertainment
|
Police: Boat sinks in Bangladesh
Pakistani civilians flee anti-Taliban offensive
Afghan double suicide attack kills, wounds 20
Sri Lankan doctor: Artillery kills 378 civilians
Afghanistan suicide bombs kill, wound at least 20
Nepal president appeals for majority govt
Philippine typhoon death toll rises to 36
Kuwait, China sign energy and other agreements
Pakistanis flee Swat as fighting escalates
New Zealand house prices weaken further in April
Sri Lanka official: Artillery kills 257 civilians
Russia to sign nuclear pact with Japan: reports
Luxury brands look to China amid global crisis
SKorea to set up resources development fund
Coming soon! Cannes' battle of the movie giants
Did France's 'New Wave' shoot its cinema?
US-ENTERTAINMENT Summary
Credit crunch dulls glitz of Cannes festival
Arab and Jew to sing for peace at Eurovision
East Germany comes alive for kids at Berlin show
VH1, Logo among winners at GLAAD Media Awards
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights