The McCain plan would be a dramatic change to the way Americans get health insurance. The Republican presidential nominee, who makes opposition to tax hikes a centerpiece of his campaign, has proposed to tax the health benefits that 156 million people get through the workplace as income. In exchange, McCain would give tax credits to help pay for insurance
- $2,500 for individuals and $5,000 for families, paid directly to the insurer they choose.
"On health care, John McCain promises a tax credit," an announcer says in one of Obama's new ads, over images of families examining their bills. "But here's what he won't tell you: McCain would make you pay taxes on your health benefits, taxing your health care for the first time ever, raising costs for employers who offer health care so your coverage could be reduced or dropped completely. You won't find one word about it on his Web site, but the McCain tax could cost you thousands or even your health care. Can you afford it?"
It's true that McCain doesn't mention that he would tax health benefits on the section of his Web site where he describes his plan. But the Obama ad also leaves out some important context
- the tax credit McCain plans to offer would be more generous than the current tax break, at least for most families for the first several years, according to an analysis by the Tax Policy Center.
The Obama campaign's mailings repeat the same message, with pictures of families receiving medical treatment and Obama consulting with doctors, and one piece centered around a doctor saying they fear patients will lose the coverage they have through their employers under McCain's plan. The campaign found a local doctor in each swing state to be featured in the mailing delivered to voters in that state.
In remarks prepared for his Saturday rally, Obama tells voters that under his opponent's plan, younger, healthier workers would purchase cheaper insurance outside the workplace, leaving an older, sicker pool to drive up the cost of the employer-based system.
"As a result, many employers will drop their health care plans altogether," Obama said. "And study after study has shown, that under the McCain plan, at least 20 million Americans will lose the insurance they rely on from their workplace."
An assessment by health care economists published last month in the journal Health Affairs projected McCain's plan would lead 20 million people to lose their employer-sponsored insurance. But it also found that 21 million people would gain coverage through the individual market.
Republican National Committee spokesman Alex Conant responded, "Barack Obama is lying about John McCain's plan to provide more Americans with more health care choices. Obama's plan only offers more government, while McCain's plan offers more choices."
