Originally Posted by McCain Voucher Plan
1. Will result in coverage gaps for many individuals.
2. Insurers are prone to “cherry-pick” the healthiest of patients as in the current system
3. The most-costly individuals to cover (those with chronic or pre-existing conditions) will either 1) remain uninsured or 2) will need to be subsidized with increased government spending
4. Under a private market insurance system, anyone with a pre-existing condition will find it difficult to switch carriers if insured and find a carrier if uninsured. McCain’s proposal is to establish a non-profit corporation with help from the states to cover these individuals
5. Costs will be higher for the elderly, individuals with pre-existing conditions or higher risk profiles (this is the natural result of a market-based system)
6. Individual tax benefit ($5k for families/$2,500 for individuals) by itself is will not cover annual health insurance premiums. Out-of-pocket costs will be on top of this, and similarly will be an additional expense borne by consumers.
7. For individuals and families at the lower income spectrum, the after-tax impact of the tax benefit will be far less than the max benefit