Maine Democratic Rep. Allen proposes mix of public, private health plans to achieve universal coverage

U.S. Rep. Tom Allen (D-Maine) on Wednesday announced a health care proposal that would aim to provide health coverage for all U.S. residents using a combination of public and private plans, the Portland Press Herald reports. Allen is running against sitting Sen. Susan Collins (R).

The proposal would allow people to keep their existing health insurance or enroll in policies offered by a government-run Healthy Americans program, which would be similar to the Federal Employees Health Benefits Program. Small businesses that offer health coverage to employees would receive a refundable tax credit. The plan also would provide federal funding to cover "some portion of the cost of catastrophic claims," Allen said. Medicare eligibility would be expanded to include people between ages 55 and 65, as well as people with disabilities who are younger than age 65. In addition, Medicaid and SCHIP would be expanded to include more children and low-income individuals. Allen said that under the plan, private insurers would have to compete for business on the basis of cost and quality.

He said, "I think this is a practical way to get universal coverage in a country where people like choices." Allen said the plan, which would cost between $75 billion and $100 billion, could be funded by ending the country's involvement in Iraq, which he said costs $12 billion per month; reducing Medicare Advantage plan payments; and allowing the government to negotiate lower prices for the Medicare prescription drug benefit (Carrier, Portland Press Herald, 5/29).