« Previous | Main | Next »

McCain Rips Obama's 'Pay or Play' Health Plan

Share

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)

User Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

mccain is attacking because he is backed ina corner, his health care policy lame... of course obama explained his policy and may even tweak it to be more like clintons which was actually the best... but mccain has NO business attacking obama on this or any issue, what a loser... a career politician who's had the BEST health care of any american and NEVER paid for it!! Why are republicans the BIGGEST hypocrites in the world?

Posted by: earthisnotflat | Jul 7, 2008 11:32:49 PM

Obama is better than McCain on foreign policy. McCain is better on spending. Why can't either one get it right on both?

Posted by: Huh | Jul 7, 2008 11:35:06 PM

So you say McCain has never paid for his health care. Can you prove it? Has NoBama paid for his since he's been in the senate? When did Obama explain his health care plan and how to achieve it? He did try to emulate Clintons, however, she nailed his butt for doing so. I remember in the debates, as Obama stammered and stumbled and couldn't answer questions without a speech written by Axelrod or a teleprompter. He would respond, "...uhh...ummm...uuhhhh...I agree with Mrs. Clinton." I agree, Hillary had the best health care plan, however, I don't see Obama's plan aligned with hers. The problem is, you can't BELIEVE Obama! He will say one thing today, and then something else tomorrow. Please, tell me, what are the benefits of an Obama universal health care plan?

Posted by: Will | Jul 7, 2008 11:37:24 PM

Not all company owners or execs are in it for just their families. I suppose if your business was solely a family run and operated but that would mean you are a farmer and farmers blog oh so differently. If you have employees you then have an extended family with inherent obligations which transcend your immediate family.
Sorry but I am not buying as I have been there, succeeded and turned my good fortune to those who never had the opportunities I was exposed to...And taxes are like death, both will not be evaded or avoided.

Posted by: rps1023 | Jul 7, 2008 11:40:22 PM

This is so farcical. The news media again sucks up to McCain and shows no ability to challenge inconsistencies in the McCain positions.

All around the world countries provide health care for their citizens in some fashion.

Refusing to examine what works around the world and incorporating it into our US model is dragging us down into 3rd world status.

McCain wants to outsource jobs to other countries, and we who are left here have limited health care options if we lose our jobs.

McCain is so out of touch.

so is the news media, for sucking up to the McCain/Rove camp and refusing to do the job expected of a free press.

Posted by: Leo Cassidy | Jul 7, 2008 11:40:54 PM

earthisnotflat - Obama policies will result in a $250 billion dollar increase on the budget over what it is now. I believe I saw this on abcnews or cnn several months ago. By comparison Hillary was $240 billion, McCain was $60 billion, and Ron Paul was -$150 billion. Since we need to greatly reduce spending, it doesn't take a genius to see who is best here. Obama is worse. However since McCain wants to bomb Iran, I will take Obama over McCain. You Obama supporters really need to tell your candidate to reign in the spending. It will eventually sink us.

Posted by: Huh | Jul 7, 2008 11:42:55 PM

Will - Anyone that gleefully sings bomb, bomb, bomb Iran should not be taken seriously on foreign policy. McCain is reckless at best.

Posted by: Huh | Jul 7, 2008 11:44:02 PM

obama has only enjoyed his senate health care for a few short years, while supporting policies to get the same coverage for ALL americans, not just the corporate bought politicians like mccain... obama has a website that debunks all false accusations about him flip flopping.... but it's not my job to refute every lie the republicans blog here or elsewhere... if you choose to believe the lies you've been fed, that's your right as a typical american... luckily, most americans are not buying the BS any longer... that's why mccain is behind in the polls and has an uphill fight to win... honestly, i believe his only chance of winning in november is if there is more voter fraud... but you go right ahead and vote for mccain, who is just another loser in the mold of george bush, you are way in the minority and if you choose to believe the false accusations you post here, that is your choice... the rest of the country is moving past that mentality

Posted by: earthisnotflat | Jul 7, 2008 11:44:21 PM

I'm not happy with McCain's health plan proposals in comparison to the Democrats
but the Democratic proposals won't be happening within this first Presidential term . The Senate, no matter how many Democrats are there, have no intention of pushing through universal health care in the near future.

Posted by: alpaig52 | Jul 7, 2008 11:46:38 PM

earthisnotflat - We can't afford to give all Americans this coverage without borrowing from oversees. Ron Paul taught most people this. You need to get everyone on the bike to loose all the flub. That would be attacking the health crisis. The only candidate even to mention this in earnest was Huckabee.

Posted by: Huh | Jul 7, 2008 11:46:45 PM

Will - I must admit Obama will take this election. I was part of the Ron Paul movement that took on folks like yourself who have made a mockery of my party. I will go with Barr this go around, but you republicans better get your act together if you want to win elections in the future.

Posted by: Huh | Jul 7, 2008 11:50:02 PM

Huh...I agree, McCain singing bomb bomb bomb, bomb Iran is lame and was a mistake. However, I think McCain is superior over Obama when it comes to foregn policy. Look at the escalation right now between Israel and Iran. This is going to get very ugly very quickly. America will need a President who is well versed in foreign policy to help diffuse this situation. If Obama were to be President, sitting down with the President of Iran, without preconditions, is the worse thing that could be done. Obama's resume' on foreign affairs, among many other things, is waaaaay to thin.

Posted by: Will | Jul 7, 2008 11:51:18 PM

huh - just because one candidates health insurance policy is 'cheaper', doesn't mean it is "obviously better"... bad logic there... but i do agree with your other posts... in fact, i liked ron paul intensely... he is one of the VERY FEW true republicans left... sound fiscal spending, keeping the government small and out of our private lives, using defense for, well, defense (as opposed to the 'new republifacists' goal to turn every country into god fearing capitalists)... but please, spare me the spending comparisons because nothing can compare to the bush/mccain policy of giving the rich huge tax cuts while spending the rest of our taxes on illegal wars and wiretapping

Posted by: earthisnotflat | Jul 7, 2008 11:55:12 PM

The escalation is between Iran and Israel. We need to tell each side to stand down much like we did with India and Pakistan. If not, we will watch missiles fly over our heads in Iraq. I totally disagree with you. Sitting down is the only thing to do.

Posted by: Huh | Jul 7, 2008 11:56:45 PM

earthisnotflat The only thing keeping Obama's head above water against McCain right now is that there are more Democrats in this Country then Republicans. That's good, because an estimated 46% of the Clinton supporters haven't jumped on board the Obama ship.
Obama's comments in regards to Roe vs. Wade recently was like a gift to McCain-
McCain didn't have to reassure women he'd mess with Roe vs. Wade instead Obama made comments that put into question his committment to Roe vs. Wade as is. McCain is sleepwalking through this campaign while Obama is wandering around playing rockstar or like he's already been elected, outspending McCain and is still less then 5 points ahead of McCain. Heaven forbid McCain ever wakes up and gets in the race. McCain doesn't have to do anything really, it's Obama race to lose. The only one who will bring Obama down or cost him the Presidency will be Obama himself and he doesn't seem to be off to a good start since locking the nomination.

Posted by: alpaig52 | Jul 7, 2008 11:56:48 PM

Obama needs HRC to take care of healthcare. Well, come to think of it, he needs her to take care of EVERYTHING.

Posted by: Bea | Jul 7, 2008 11:58:18 PM

huh - i agree, the republicans need to get back to what made their party great.. and ron paul was/is one of their last hopes... ron paul is a true republican with dignity and integrity and sound logic, unlike those who have taken over the republican party like karl rove, rush limbaugh, george bush, the oil industry and corporate america... todays republicans are bullys, mean, and angry old white men... yes it's a stereotype but when the shoe fits wear it!

Posted by: earthisnotflat | Jul 7, 2008 11:58:42 PM

Iran's president is not permitted to engage in international diplomacy, the presidency of Iran is a domestic office. Please name any accomplisment made by my senior senator from AZ. While you are researching that one perhaps you can look into his military record.

Posted by: rps1023 | Jul 7, 2008 11:58:58 PM

earthisnotflat - I didn't say one was better. I merely stated that paying for much of what Obama promises is unrealistic. Get people to eat non-GMO, no-hormone pumped, high antioxidant, etc. foods is a start. Get people to excersize. Get McCain to bomb soft drinks. That would be a start to fixing the healthcare crisis.

Posted by: Huh | Jul 7, 2008 11:59:00 PM

Huh, I disagree with you. McCain will take this election. The Obama camp is beginning to implode. They can't handle criticism and vetting. Obama, is losing supporters because he's becoming a centrist. His change in position has caused the "lefties" to become very nervous. He is even losing Hillary donor support now. Obama, who has accused McCain of pandering all along, is now doing just that...he's pandering for votes. McCain is separating himself from Bush and Bush policies, while Obama is beginning to look more and more everyday like a clone of Bush. Obama has lost his identity and because he is not that well known, will lose the election. Americans want substance, something they are realizing they will not get with Obama.
However, I do appreciate your comments, I like talking to you. Thank you for your insight. I do agree, Huckabee has a lot going for him in his polictical analysis. Would be nice if he were McCain's VP.

Posted by: Will | Jul 8, 2008 12:00:12 AM

Post a comment