Oct 30

Obama vs McCain Health Plans Part II

Category: Uncategorized,

Obama vs McCain

We wanted to thank all our friends and readers who emailed responses and answers to the blog yesterday. Some of them were so informative that we are posting there replies here today. One reader responded to two of our questions with the following:

Two minor points/answers:
(1) for mccain, one thing he is saying as for nationwide plans, he is referring to repeal of what is called McCarren-Fergusson (sp?), which provides exemption from antitrust laws and forces each insurance company to operate within borders of a state.   Of course, they set up subsidiaries, such as BC/BS of CA and BC/BS of MD, etc., which seems like it is national, but they are actually individual entities regulated by each state.   They would repeal that, and allow for a national charter if possible and also allow for competition across state laws.   For more information on this you can look into the Antitrust Modernization Commission www.amc.gov .

Also (2).  In the obama plan, there actually is a statutory definition for what is a small business, under the Small Business Act.   It is a broad definition, for example, having up to 500 employees you are still a SB.

Another reader responding to Obama’s plan for importing medications and using generics wrote:

What most people don’t hear is that drug cost is less than 5% of Medicare expenses. Therefore, if all drugs were free, there would be a 5% cost savings. The penalty of lowering company revenues would be a significant reduction of innovation. For example, Genentech ( a pharmaceutical company) has some of the highest priced drugs on the market  but if they were to become a non profit company, they could cut the cost of their drugs by only 24%. Keep those #’s on mind.

It’s too bad the media is more interested in telling us about the most recent polls, rather than actually delving into the details of the candidates plans.

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