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McCain Rips Obama's 'Pay or Play' Health Plan
July 07, 2008 10:11 PM
ABC News' Teddy Davis, Bret Hovell, and Gregory Wallace report: Republican John McCain launched a new line of attack against Barack Obama today, portraying the Democrat’s health-care plan as an unaffordable job-killer.
"Small businesses are the job engine of America, and I will make it easier for them to grow and create more jobs," McCain said. "My opponent wants to make it harder by imposing a 'pay or play' health mandate on small business."
McCain refers to Obama’s plan as "pay or play" because employers would either have to "play" by making an unspecified "meaningful contribution" to the cost of their employees’ health coverage or else they would be forced to "pay" a "percentage of payroll" toward the costs of a national plan.
While unveiling his "Jobs for America" economic plan in Denver, McCain charged that Obama’s health plan would add "$12,000 to the cost of employing anyone with a family."
"That means new jobs will not be created," McCain said. "It means existing employees will have their wages cut to pay for this mandate."
The $12,000 figure cited by McCain is the current average annual cost of a family health insurance policy.
While the "pay or play" attack identifies a basic feature of his rival’s health-care plan, the Arizona senator is omitting key details about Obama's plan to mitigate costs on struggling small businesses.
"This is a real distortion of reality," Obama health-care adviser Stuart Altman, who is also the dean of Brandeis University's Heller School for Social Policy and Management, told ABC News. The employer’s contribution is "never going to be 100 percent of $12,000."
Obama’s plan includes an exemption for small businesses that meet unspecified "revenue thresholds." He proposes reimbursing employers for catastrophic health-care costs to lower the premiums faced by individuals. In addition, Obama would consider less than 100 percent to be a "meaningful contribution."
"It could be 50 percent. It could be 60 percent," Altman said. "It varies depending on how the Obama people set the percentage up."
Businesses with low revenues would contribute to the cost of their workers' health care on a "sliding scale" with some fully exempt.
Obama spokesman Nick Shapiro said the candidate will leave it to the legislative process to define what constitutes a "meaningful contribution" from employers, as well as the scope of the small business exemption and the threshold at which government picks up catastrophic expenses.
"Those are all details that will be worked out with Congress," Shapiro said.
Altman said requiring employers to make a contribution toward their workers’ health-care costs is always "controversial" with those who don’t currently "pay for it and don’t want to pay for it."
"You have a number of companies that essentially are freeloading off of those that are covered," Altman said. "The Obama plan is an attempt to level the playing field. Not to create an undue tax. ... Just because you’re small doesn’t mean you’re not profitable."
July 7, 2008 in Hunter, Duncan, Kucinich, Dennis | Permalink | User Comments (131)
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Under McCains plan the total health care costs would be transferred to the individual. While he promises a tax credit, how many of you pay 12,000/year in taxes?
His plan again is to pay for health care for those who have at the expense of those who have not. Redistribution of what little wealth wealth we have into the hands of those who have. Government services for those most in need, the wealthy.
Posted by: Thinking | Jul 7, 2008 10:42:42 PM
The news organizations are basically lazy. McCain says Obama changed his opinion. A halfway competent organization could have looked up the hours and hours of video they have on Obama to see if his position has changed. That would reek of effort.
Posted by: remarks | Jul 7, 2008 10:55:06 PM
Will...
Losing supporters left and right? Hmmm,that is exactly why Senator Obama is ever increasing his margin over my senior Senator...who cannot even maintain his base of support in his/my own state.
Posted by: rps1023 | Jul 7, 2008 10:55:06 PM
McCain's health care plan would give everyone a $2500 tax credit (or a check if they are too poor to pay income taxes) for the purchase of health insurance. A family would get $5000. He says that the problem starts with overly costly health care. he says that we need to slash these costs, to make room to cover those who have no health care. He would prioritize efforts to cut smoking and encourage healthy habits and would also focus on reducing health costs by efficiency and productivity. Then he would reinvest those savings in expanded care.
Posted by: Will | Jul 7, 2008 10:57:59 PM
What's unspecified? Sounds like Obama doesn't want to be nailed down on the issues before the election as usual. It's not unspecified; otherwise businesses would have a huge loophole not to pay much at all. Rather, complicated language allows for business to pay a percentage, or more, if they wish.
Posted by: Patrick | Jul 7, 2008 11:01:38 PM
"While he promises a tax credit, how many of you pay 12,000/year in taxes?" Right on!!! Having paid well over $50K in taxes last year, I think that it is more than time for reason. Those people who want it need to actually go out and earn it for themselves. Those who earn it certainly didn't work as hard as they have to give more and more to people they don't know who continue to insist on doing less and less and less, and receive more handouts. Thanks for a great post! This country is not about socialism. It is about pride, self worth, and responsibiity.
Posted by: Skyebeader | Jul 7, 2008 11:04:13 PM
Will: where do you think the government gets those healthcare tax credits? By taxing us somewhere/somehow else.
Posted by: remarks | Jul 7, 2008 11:04:19 PM
Health care cost rosewith the demise of the family practice, replaced by the insurer's HMO and its offspring. Lawsuits have little effect on health care costs. And what pray tell sort of health insurance can be purchased for $2500 per person? Some of you folks either are minors or still believe diner coffee is a dime...and tip accordingly.
Posted by: rps1023 | Jul 7, 2008 11:05:31 PM
Obama wants to set up a "National Health Insurance Exchange" to serve as a watchdog concerning who and who would not receive insurance coverage. Under Obama's plan, 10 million illegal aliens would become covered and the health care would be "rationed" between them and American citizens. Obama's plan would not give credit to healthy insureds, but the plans would cost the same whether you are healthy or not. Obama's plan wold drive up the cost of helath care and force rationing on us for tghe firest time.
Posted by: Will | Jul 7, 2008 11:08:22 PM
when it comes to healh insurance and a person's income and supporing a family think about the x amount of dollars that person earns and the amount he has to pay to put a roof over their heads and foodon the table and now to pay for the gas to get to that job what is left for health insurance unless your forunate enough to have an employer willing to pay for 90% of it. If a person could afford it he would have it.
Posted by: Rose Szymanski | Jul 7, 2008 11:10:18 PM
Under the McCain health plan, American women have fewer reproductive-health options because McCain is too conservative. McCain still adheres to Bush's ultra-conservative system where - basically - McCain expects women to abstain from sex. And you know, that's not helping women - that's restricting women! McCain is not an ally to women. McCain will not lead us into the new centry - he'll take us back to the 1900s. We can't let McCain's health care program become reality - because McCain is too harsh on women.
Posted by: Allen | Jul 7, 2008 11:10:59 PM
barack is acting more like george bush than ever. He is also acting like john kerry with his flip flopping. who is this man? Democrat? Republican? Both? What a disaster barack has become. Loser.
Posted by: Barack Bush Obama | Jul 7, 2008 11:13:41 PM
Allen, where and how can you prove that McCain is harsh on women? I don't see that at all. I think McCain is trying to bring down the cost of health care so that ALL Americans can afford it. On the other hand, I DO have a problem with Obama in that he wants to give credence and coverage to 10 million illiegal aliens, as well as give them drivers license. By doing this, Obama will diminish the quality of care our American citizens could and should receive.
Posted by: Will | Jul 7, 2008 11:14:22 PM
I'm still trying to figure out why it is the government's reponsibiity to pay for everyone's health care too. Don't any of you people take care of or want to take care of your own business? I say cut my taxes and let me decide where and what I need to spend my money on instead of redistributing my pay to those that are looking for a nanny at a grossly marked up margin price seeing as everytime the government gets involved fraud, waste, and abuse of systems especially concerning health care run rampant.
Posted by: chattyway | Jul 7, 2008 11:21:03 PM
I think government regulation is needed. When you are paying over $700 per month for family coverage with a $1000 deductible, regulation is needed. I'm glad, Chattyway that you support McCain. Thats what he's trying to do.....cut taxes or give the citizen the money to help out in paying for healthcare. Under Obama's plan, he seems more interested in insuring the illegals than he is of insuring Americans.
Posted by: Will | Jul 7, 2008 11:24:40 PM
Yes I am supporting McCain over Obama...Obama must go for a large number of reasons.
Posted by: chattyway | Jul 7, 2008 11:26:52 PM
just love when McCain supporters beg for government intervention & regulation....yet chat away about free markets...
Posted by: rps1023 | Jul 7, 2008 11:28:15 PM
McCain supporter here as well. I can't trust Obama. I see now how many news organizations are vetting him and the "true" Obama is coming out, and he isn't what America needs.
McCain 08!
Posted by: Will | Jul 7, 2008 11:28:19 PM
Welfare and warfare. Those are the choices you folks are arguing over. I just checked out Barr on Glenn Beck. He sounds pretty good. Think differently for a change.
Posted by: Huh | Jul 7, 2008 11:28:35 PM
rps1023 - there's the matter of working for an employer, additionally owning one's own companies for years, having other income properties and investments, and making the money do most of the work. We subscribed to "feed the pig" long before it was a cute ad campaign that we wish more people would look into. I need to fund no one other than myself and my family. That is the entire point. I'm not funding a McCain campaign and I certainly do not want to fund the masses that support Obama and want more of ours. Those premises are called "lose-lose". I didn't work this hard to lose.
Posted by: Skyebeader | Jul 7, 2008 11:30:27 PM
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