What is H.R. 676?
H.R. 676, also called the
United States National
Health Insurance Act, is a
bill to create a
single-payer,
publicly-financed,
privately-delivered
universal health care
program that would cover all
Americans without charging
co-pays or deductibles. It
guarantees access to the
highest quality and most
affordable health care
services regardless of
employment, ability to pay
or pre-existing health
conditions.
What is "single-payer"?
The term single-payer
describes the kind of
financing system that H.R.
676 uses. It means that one
entity--in this case,
established by the
government--handles all
billing and payment for
health care services. Right
now, there are thousands
upon thousands of "payers"--
HMOs, PPOs, bill collection
agencies, etc. The sheer
volume of paperwork required
by our current system means
that administrative waste
accounts for roughly 31% of
the money spent on health
care.
The single-payer system
would eliminate the wasteful
paperwork and administrative
costs, redirecting more of
our health care dollars to
providing care.
Medicare is perhaps the best
known single-payer system.
Essentially, H.R. 676 would
improve Medicare and expand
it, so that it covers all
Americans, regardless of
their income.
Who will be eligible for
health care coverage under H.R. 676?
All Americans will be
eligible for health care
coverage. Every person who
enrolls in the program and
receive a United States
National Health Insurance
Card and individual ID
number, and that is all
anyone will need to receive
care.
What health care services
are covered?
The program established by
H.R. 676 will cover all
medically-necessary services
without charging co-pays or
deductibles. The services
covered will include:
primary care; inpatient,
outpatient and emergency
hospital care; prescription
drugs; durable medical
equipment; hearing, dental
and vision care;
chiropractic treatment;
mental health services; and
long-term care.
What about
"catastrophic" care? Will I ever
reach a limit for coverage?
No. There are no limits on
coverage. Just as you will
never pay a co-pay or a
deductible under the
universal national health
care program, you will never
reach a ceiling on your
coverage.
Will I be able to choose my
doctor?
Yes. Patients will have their
choice of physicians, providers,
hospitals and clinics. The
financing will be public, but
the providers will all remain
private.
No co-pays or deductibles--
what's the catch? Will I actually
pay less for health care?
There is no catch. Both
families and employers will
pay significantly less for
health care.
Currently, the average family of
four covered by an
employer-provided health care
plan spends roughly $4,225 on
health care each year, including
premiums, services, prescription
drugs and supplies. This figure
does not include the annual
Medicare payroll tax, currently
at 1.45%. Under the plan created
by H.R. 676, a family of four
making the median income of
$56,200 would pay about $2,700
in payroll tax for all health
care costs. No deductibles, no
co-pays, no worrying about
catastrophic coverage.
Employers who provide health
insurance currently pay, on
average, 74% of employee health
premiums. For a family of four,
the average employer share is
$8,510 per year. Under H.R. 676,
the employer pays a 4.75%
payroll tax, not a premium to
health insurance companies. For
an employee making the median
family income of $56,200
annually, the employer would pay
roughly $2,700.
Estimates taken from:
Employer Health Benefits
2006 Annual Survey, Kaiser
Family Foundation and Health
Research and Educational
Trust; Consumer Expenditure
Survey, U.S. Department of
Labor, Bureau of Labor
Statistics; and Study by the
Center for Economic Research
and Policy.
How will the transition to
the new system work?
The full conversion to a
non-profit, single-payer
universal health care
program will not take place
overnight once the bill is
passed. The total transition
time will be roughly a
15-year period. Important
elements of the transition
will include:
• Private health
insurance companies will
be prohibited from
selling coverage that
duplicates any benefits
included in the
universal national
health care program. The
private companies will,
however, still be able
to sell coverage for
services that are not
deemed medically
necessary, such as many
cosmetic surgery
procedures.
• Private insurance
company workers who are
displaced as a result of
the transition will be
the first to be hired
and retained by the new
single-payer entity. Any
of the displaced workers
who are not rehired will
receive two years of
unemployment benefits.
How will the universal
program be paid for?
First, switching to a
single-payer system will
lead to billions of dollars
saved in reduced
administrative costs. Those
savings will be passed on
through the system and allow
coverage for all Americans.
Additional savings in the
overall cost of health care
will come from annual
reimbursement rate
negotiations with physicians
and negotiated prices for
prescription drugs, medical
supplies and equipment.
Second, a "Medicare For All
Trust Fund" will be created
to ensure a dedicated source
of funding in addition to
annual appropriations.
Sources of funding will
include:
• Maintain current federal
and state funding for
existing health care
programs
• Closing corporate tax
loopholes
• Repealing the Bush tax
cuts for the highest income
earners
• Establish
employer/employee payroll
tax of 4.75% (includes
present 1.45% Medicare tax)
• Establish a 5% health tax
on the top 5% of income
earners; a 10% tax on top 1%
of wage earners
• One quarter of one percent
stock transaction tax
