Obama's plan calls for additional consumer, insurance company regulation

Attempting to provide the sought after detail that many Americans argue as lacking from the number of health care proposals authored by a Democratic Congress, Mr. Obama stated that a solution should achieve three goals.

First, given that the system should build on what works versus a new system from scratch, reform should provide consumers who are currently insured with more security and stability. Second, reform should result in slowing down the increases in costs government incurs for providing Medicare. Third, reform should result in the uninsured obtaining insurance coverage.

Mr. Obama provided detail on the regulatory aspects of his plan by reiterating that Americans who are currently covered by some insurance plan, whether public or private, would not be required to change the doctor that they have. It would also be against the law for an insurance company to deny a consumer coverage for pre-existing conditions and to drop a consumer's coverage should they become ill. In addition, limits would be placed on how much consumers would pay out of pocket toward their health care and insurance companies would be required to cover preventive measures like check ups at no additional costs.

Addressing the demand side of the insurance market, particularly consumers who do not have insurance, Mr. Obama proposed that uninsured consumers would be able to obtain coverage from health insurance exchanges where coverage would be provided at competitive prices. Mr. Obama expects that larger groups of consumers and businesses would be able to command discounted premiums based on the volume that large groups of consumers generate. Where individuals and businesses cannot afford coverage, they would receive tax credits toward the purchase of coverage.

The last prong of Mr. Obama's proposal focused on regulating the behavior of the uninsured consumer. Referring to consumers who choose to go without coverage as practicing "irresponsible behavior", Mr. Obama proposed that all individuals be required to purchase health insurance based on the premise that the insured pay through their premiums for the health care of the uninsured. However, for those who absolutely could not afford insurance, a hardship exemption would be made available.

While Mr. Obama again expressed strong support for a public option that would inject competition in the insurance market, there are strong indications from the Congress that legislation containing a government-sponsored plan would not pass. Republicans in the House and Senate are opposed to it, along with some fiscal conservative Democrats. Senator Max Baucus (D-MT), chairman of the Senate finance committee, indicated yesterday that passage of legislation with a public health insurance option was highly unlikely.