May 18, 2007

In his 2007 State of the Union Address, President George Bush made a significant impact on health insurance news when he announced his plans to reform healthcare in the United States. President Bush believes that privatized health care works effectively in the nation, and that his new reforms will make private health care more affordable and available for Americans.

There are two important components to the President's new healthcare policy: a new tax code deduction and additional funding for states that help provide their citizens with access to healthcare. The details of these parts of the plan are listed below.

The Tax Code Deduction

The tax code deduction is available to people who elect to purchase their insurance through a private company, rather than using a health insurance policy provided by an employer. Uninsured people who decide to purchase a private policy are also eligible for this deduction.

Funding for States

This component of the President's new healthcare policy will be available to states that provide their residents with basic, affordable private health care insurance. Such states will receive Federal funding in order to help offer health insurance to people who have difficulty qualifying for health insurance and/or cannot afford health insurance.

President Bush is also an advocate of Health Savings Accounts (HSA's) because he believes they allow people to remain in control of their health insurance spending. A Health Savings Account is a tax free way to save money for possible future medical expenses.

Reactions to the Proposed Policy

This new health insurance proposal has generated a lot of reaction from the public, and there are varying opinions and viewpoints. Those who are in opposition to Bush's healthcare reform such as, Democratic National Committee Chairman Howard Dean, may argue that the healthcare reform Bush has proposed contributes to tax increases for middle class Americans. Supporters of the new healthcare policy, many of whom are Republicans, argue that it will make private health insurance more affordable and available for many uninsured Americans.

Who Will This New Healthcare Policy Affect?

President Bush's healthcare policy will directly affect uninsured people and people who have private party insurance policies. These two groups of people will receive tax deductions that aim to make health insurance more affordable. The wider effects that Bush's healthcare reform will have may include the following possibilities: higher taxes for middle income Americans, increased availability of private health care, and less reliance on government run health care programs.

President Bush says that if this plan is implemented in 2009, the average tax bill of an insured family will be lowered by $3,350 in that year. It is presumed that the family will use the money they save on taxes to purchase a private healthcare plan.