The Mideast is the largest recipient of federal Fritzcare money, 273 billion. As the dialogue at the federal level about healthcare continues, the Mideast can do our part to help in the federal reforms to come by cutting our healthcare costs. That is the purpose of this legislation.
So, let me take this item by item.
Standard Health Credit(SHC)- We pay for a large portion of the Standard Health Credit by eliminating the existing health tax credits. The credit is refundable meaning that it is essentially a subsidy for low-income families. The SHC encourages frugality and makes quality, private insurance possible for every citizen of the Mideast.
Setting Up the MWA- This agency will essentially serve as our chief healthcare agency. It will make administration of healthcare policies simpler and more cost-effective. It is also worth noting that the agency will not add an unfunded dime to the budget. It is in the bill that they can't operate at a loss.
Employer Wellness Programs- These programs, run by the MWA, will cut healthcare costs in the intermediate to long term. It is a great way to encourage healthiness and reduce longterm demand on our hospitals.
High Risk Pools- These are also controlled by the MWA. The pools will cut premiums for the vast majority while also doing what is best for high-need individuals. The Risk Management component serves to once again cut costs. The penalties for not enrolling in HRP's if you're eligible is designed to pay your share of the disproportionate costs you put on the healthcare system.
Healthcare Efficiency Tax Deduction- This one is pretty straightforward. If you cut costs, you get a tax cut. If you increase costs, you pay more. This is designed to cut the cost-of-delivery and lower premiums and out-of-pocket costs on patients and insurers.
Prescription surcharges- The provider fee is designed to tackle the issue of over-prescription. If people don't need medicated, don't medicate them. It's supposed to increase the longevity of drugs. The consumer fee with the generic exemption is a cost containment thing. By encouraging use of generics, we're going to significantly reduce spending on prescription drugs.
Excise Tax Increases- The items I've raised taxes on all contribute to higher healthcare costs. By raising revenue on these items, we're also cutting their use. This is the most sensible way to raise revenue for healthcare policies since the tax increases alone are cost containment measures.
Spending Reduction- Keeping our belts tightened and paying for a worthwhile program. The cut is over 5 billion dollars and helps pay for a very large portion of this bill.
