Imagine what might have been. After Barack Obamas presidential victory in 2008, Zeke Emanuel and others on the White House staff urged him to adopt John McCains approach to health reform. Such an approach also would have been consistent with the earlier writings of Obama economic advisor Jason Furman.
The McCain approach was to replace all existing health insurance subsidies (including subsidies for employer coverage) with a universal tax credit much like the child tax credit. If we did that today, I believe the amount would be close to $2,500 per adult and $8,000 for a family of four. Since this is roughly what it costs to enroll people in Medicaid, those amounts would buy Medicaid-like insurance unless additional sums were added out of pocket.
|John C. Goodman is a Senior Fellow at the Independent Institute, President of the Goodman Institute for Public Policy Research, and author of the widely acclaimed Independent books, A Better Choice: Healthcare Solutions for America, and the award-winning, Priceless: Curing the Healthcare Crisis. The Wall Street Journal and the National Journal, among other media, have called him the Father of Health Savings Accounts.|
Obamacare remains highly controversial and faces ongoing legal and political challenges. Polls show that by a large margin Americans remain opposed to the healthcare law and seek to repeal and replace it. However, the question is: Replace it with what?