Republican presidential frontrunner Rudy Giuliani unveiled his own health care reform plan yesterday, while taking potshots at the “socialists” over in the Democratic party proposing universal insurance. Rudy got his sound bites in, but I don't believe his tax-credit-based program will win him many votes, and could in fact cost him the general election, if he makes it that far.
According to coverage by the Associated Press, the foundation of Rudy's plan is to provide a $15,000 tax deduction so families can buy private health insurance. While this might offer some relief to those currently uninsured, it also will certainly encourage more employers to dump their health benefit plans and leave workers to fend for themselves.
Rudy's half-baked scheme is similar to those in the private sector trying a defined contribution approach for the purchase of health insurance–the same path that stripped millions of their pension security. Instead of guaranteeing health coverage, the employer gives you a tax-protected stipend and lets you buy your own policy.
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