President Announces Plan To Reduce Number of Uninsured

On a recent radio address, President Bush announced his administration's plan to help reduce the number of uninsured Americans. According to the Wall Street Journal, this plan would give all Americans a tax deduction for purchasing health insurance - regardless of whether they get their coverage through work or individually. However, Bush's proposal also includes a provision requiring that the cost of job-based coverage count towards an employee's income for income tax purposes. Analysts believe that most workers will still experience overall savings, but because taxation is complex and affects people differently, some Americans will pay more in taxes because of this increase to employee income.

Experts disagree on whether Bush's proposal is a good idea. Some believe that tax breaks for health coverage are actually one of the causes of our healthcare crisis, and therefore, this proposal will create more problems than it resolves. Others believe that the Bush plan will drive down costs by encouraging competition and smart shopping. We are sure to hear more about this proposal over the coming days and weeks - perhaps as early as tomorrow night, on the State of the Union address.

For those who do not subscribe to the Wall Street Journal, a summary of Bush's health care proposal can be found on California Healthline.