The Obama health care plan - a closer first look

The White House released the Obama health care plan without a "Public Option" and with a specific desire to achieve an "up or down" vote according to White House Communications Director Dan Pfeiffer who was on the conference call with reporters this Monday morning. The White House gave the major points of change in the Obama health care plan in their presentation:

-It makes insurance more affordable by providing the largest middle class tax cut for health care in history, reducing premium costs for tens of millions of families and small business owners who are priced out of coverage today. This helps over 31 million Americans afford health care who do not get it today – and makes coverage more affordable for many more.
-It sets up a new competitive health insurance market giving tens of millions of Americans the exact same insurance choices that members of Congress will have.
-It brings greater accountability to health care by laying out commonsense rules of the road to keep premiums down and prevent insurance industry abuses and denial of care.
-It will end discrimination against Americans with pre-existing conditions.
-It puts our budget and economy on a more stable path by reducing the deficit by $100 billion over the next ten years – and about $1 trillion over the second decade – by cutting government overspending and reining in waste, fraud and abuse.

According to the Huffington Post, the White House' Pfeiffer says the President looks at this as their "best shot at bridging the differences. We think this makes some strong steps to improving the final product. It is our hope the Republicans will come together around their plan and post that online prior to the meeting so that the American people have a chance to go look at it... and be thoroughly informed heading into this meeting."

"This meeting" is Thursday's bipartisan health care reform summit. Even as the Obama health care plan is seen as a "Democratic effort" the White House says Republicans will have a chance to amend it. One part of the Obama health care plan Republicans reportedly don't seem to like is the plan to control insurance rate increases.

The new legislation, initially proposed by California Senator Diane Feinstein, would give the Health and Human Services Department power to oversee and if necessary eliminate rate increases seen as too high. The "Feinstein Provision", as this blogger calls it, would result in a new organization called The Health Insurance Rate Authority.

Jon Walker over at FireDogLake.com thinks it's not a serious proposal and just "potentially cynical politics"; i disagree. The Health Insurance Rate Authority gets right at the main problem in health care costs - insurance rate increases.

Republicans have not offered an alternative plan, and will cry that the The Health Insurance Rate Authority is just more government control. But as any real economist will tell you, government in a democracy exists to make sure "market forces" are not acting against the welfare of the populace.

 The Health Insurance Rate Authority is something that both Democrats and Republicans who really want to fix health care should get behind. Kudos to Senator Feinstein for developing an alternative that's a worthy replacement of the Public Option.

If you want to read the Obama health care plan, download a copy here: Obama Health Care Plan.

Stay tuned.