Which Political Party Proposes Cheap Health Insurance

The two major political parties in the United States have vastly different ideas on what makes for good policy. One of the issues most prevalent in elections is the issue of cheap health insurance. Candidates also like to talk about retirement plans. In this article, we take a look at which candidate for the 2004 Presidency, President George W. Bush or Senator John F. Kerry, considers cheap health insurance the right way to go. We also look at what their retirement plans are.

Excerpt From:
How Will Vote Affect Your Finances
Pamela Yip – Dallas Morning News 10/13/04

Health Insurance
Bush: A key part of President Bush's re-election strategy is promoting an "ownership society" in which Americans are more in charge of their financial lives.

The goal is to wean Americans from being dependent on government to becoming owners of their own security, including health care dollars, retirement savings and homeownership.

Health care savings accounts are a cornerstone of that strategy.

The accounts are sort of a cross between a flexible health care spending account and a 401(k).

Like a flex account, you can use the money to pay for health care costs that insurance doesn't cover, including some premiums. Unlike a flex account, you invest the money as you see fit, it grows tax free, and you can roll it over from year to year, or to a new job.

But to contribute to such accounts, you must be younger than 65 and you must be enrolled in a health plan with high deductibles.

You'll use the accounts to pay for medical expenses up to your deductible, or for other expenses that aren't covered. Once you meet the deductible, your health policy will cover you for the rest of the year.
Mr. Bush believes that if Americans had more control over their health care dollars, they would spend them more prudently.

Kerry: Mr. Kerry wants to cut family health insurance premiums by up to $1,000 a year, lower the cost of prescription drugs for seniors and use tax cuts to make health insurance more affordable for Americans.

He favors the re-importation of safe prescription drugs from Canada and ending barriers to generic drug competition.
Mr. Kerry would seek to create a "premium rebate" pool that would make health care more affordable for employers and employees by helping out with certain high cost cases.

The pool would reimburse private and public employer and group health insurance plans that meet certain qualifications for a portion of catastrophic costs.

Retirement
Bush: If you're a younger worker, you would have the option of saving part of your Social Security payroll taxes in a personal retirement account under Mr. Bush's proposal.

Benefits for current and near-retirees wouldn't be affected.

Mr. Bush has also proposed encouraging Americans to save in Retirement Savings Accounts and Lifetime Savings Accounts. He wants to expand homeownership – especially among minorities.

"The biggest component of most people's retirement security is equity in their home," Mr. Jillson said. "If you expand homeownership to more people, that means more people are growing equity in their homes that will be available to them in retirement."

Kerry: Under Mr. Kerry's proposals, you wouldn't be getting a higher bill for Social Security taxes or have to retire later.

Mr. Kerry says he wouldn't raise Social Security taxes or the retirement age, cut benefits or privatize Social Security.