A State-Based Proposal for Achieving Universal Coverage

Publication Date:

Publisher: Economic and Social Research Institute

Author(s): R. Kronick; T. Rice

Research Area: Health

Type: White Paper

Abstract:

Richard Kronick and Thomas Rice propose that the United States adopt a health care financing system that would provide comprehensive health insurance to all nonelderly, legal residents and replace most major components of the current system, except for Medicare and Medicaid-financed long-term care. While employers and employees would continue to contribute to the health system, employers no longer would be involved with providing insurance.



Instead, the federal government would oversee the new system, and states would administer it. All health insurance choices offered by the states would have to include services specified in a federally defined benefits package that states may choose to augment. Eligible residents would have at least one health insurance option that does not require premiums. The primary revenue source, a payroll tax levied on employers and employees, would be supplemented by general federal revenues, state revenues, and, possibly, individual contributions for certain plans or benefits beyond those included in the standard benefits package. States would receive an annual fixed-dollar contribution from the federal government to encourage them to contain costs.