How Will President Barack Obama Change Our Health Insurance?

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May 13th, 2009

The economy has taken center stage for President Obama’s team, but he has also promised much-needed reforms for the healthcare system. Therefore it seems likely that while these reforms might come later than originally expected, there will be some changes made to healthcare and heath insurance policy. It is impossible to determine exactly how any changes that Obama wants to make will actually affect citizens because those changes would need Congress’ approval, but you can expect some general trends in the years to come.

Plans to Expand Health Insurance Coverage for Children

The State Children’s Health Insurance Plan (SCHIP) has been one of the most successful health insurance initiatives in the U.S., but it does not currently reach as many children as it could because President Bush has blocked funding increases. Obama intends to correct what many people see as a serious mistake in healthcare reform by giving SCHIP access to the funds that they need to make sure every child in the U.S. is insured.

Intentions to Encourage Businesses to Offer Health Insurance to Employees

President Obama has stated that he intends to encourage businesses to offer its employees healthcare benefits by charging them more taxes if they do not. Traditionally, health insurance in the U.S. has been sponsored by employers, but companies have dropped this benefit to reduce the amount of money that they spend. Obama’s plan would shift some of the burden back to private companies, but would not penalize small businesses that cannot afford to offer health insurance to their employees.

Wants to Expand a National Insurance Pool

Expanding the number of people covered by public and employee programs would decrease the amount of money that individuals spend on healthcare, but it still leaves a large number without coverage. President Obama plans to expand a national insurance pool that will give uninsured citizens access to discounted group rates regardless of their health condition. If he is successful at this endeavor, then it could bring many more people into the health insurance system, which will reduce the overall healthcare costs that companies, individuals and public programs take on each year.

While this is similar to a universal healthcare system, it is not exactly the same because it still gives people the option to seek their own insurance plans through employers and other programs. Citizens who use the national insurance pool will also have to pay for their coverage.

This program would be more affordable than current individual policies, but it would not provide free coverage to all citizens. The federal government will not takeover the insurance industry, but it may begin to participate more so people will have more discounted plans to choose from.