legislative summary of H.R. 676

Legislative Summary of H.R. 676
The United States National Health Insurance Act

The United States National Health Insurance Act establishes a unique American national universal health insurance program. The bill would create a publicly financed, privately delivered health care system that uses the already existing Medicare program by expanding and improving it to all U.S. residents, and all residents living in U.S. territories. The goal of the legislation is to ensure that all Americans will have access, guaranteed by law, to the highest quality and most cost effective healthcare services regardless of their employment, income, or healthcare status. With over 45 million uninsured Americans, and another 50 million who are under-insured, the time has come to change our inefficient, costly, and fragmented non-healthcare system.

Who is Eligible

Every person living or visiting in the United States and the U.S. Territories would receive a United States National Health Insurance Card and ID number once they enroll at the appropriate location.  Social Security numbers may not be used when assigning ID cards.

Healthcare Services Covered

This program will cover all medically necessary services, including primary care, inpatient care, outpatient care, emergency care, prescription drugs, durable medical equipment, long term care, mental health services, dentistry, eye care, chiropractic, and substance abuse treatment.  Patients have their choice of physicians, providers, hospitals, clinics, and practices.  No co-pays or deductibles are permissible under this act.

Conversion To A Non-Profit Healthcare System

Private health insurers shall be prohibited under this act from selling coverage that duplicates the benefits of the United States National Health Insurance program.  Exceptions to this rule include coverage for cosmetic surgery, and other medically unnecessary treatments.  Those who are displaced as the result of the transition to a non- profit healthcare system are the first to be hired and retrained under this act.

Cost Containment Provisions and Reimbursement

The United States National Health Insurance program will set reimbursement rates annually for physicians, allow for global budgets (annual lump sums for operating expenses) for healthcare providers; and negotiate prescription drug prices.  A “Medicare For All Trust Fund” will be established to ensure a dedicated stream of funding, as well as an annual appropriation to ensure optimal levels of funding for the program.
 

HR 676 Would Reduce Overall Healthcare Costs

Families Pay Less. A study by nationally recognized economist Dean Baker of the Center for Economic Research and Policy concluded that under H.R. 676, a family of three making $40,000 per year would spend approximately $1,900 per year for healthcare coverage.  By contrast, in 2007 the average annual premium for families covered under an employee health plan was $11,000 according to the National Coalition on Health Care.

Business Pays Less. In 2005, without reform, the average employer that offered coverage contributed $2,600 to healthcare per employee (for much skimpier benefits), or $217 per month.  Under HR 676, the average costs to employers for an employee making $30,000 per year will be reduced to $1,425 per year, or about $119 per month.

Baker's study reported that HR 676 would have reduced health spending in 2005 from $1.918 trillion to $1.861 trillion, which translates into a saving of $56 billion in overall healthcare spending while covering all of the uninsured. This is a 3% reduction in overall healthcare spending.

Proposed Funding For the
United States National Health Insurance Program

HR 676 would maintain current federal and state funding for existing healthcare programs; impose an employer payroll tax of 4.75% and an employee payroll tax of 4.75%; establish a 5% health tax on the top 5% of income earners and a 10% tax on the top 1% of wage earners; it would impose a 1/3 of 1% stock transaction tax; close corporate tax loopholes; and repeal the Bush tax cuts for the highest income earners.

Conversion

The conversion to a not-for-profit healthcare system will take place over a 15-year period through the sale of U.S. treasury bonds.