Kerry Would "Dramatically Expand" Health Insurance Access

May 19, 2003
Democratic presidential candidate Sen. John Kerry (D-Mass.) formally released his health care proposal over the weekend in Des Moines, Iowa. He said his plan would "dramatically expand" access to health insurance while trying to control growing health costs.

Under the plan, the federal government would assume states' share of costs for covering children enrolled in Medicaid. In exchange, states would expand their CHIP programs to cover all children and parents with household incomes of up to 300% of the federal poverty level, or $55,200 for a family of four.

Kerry said that states would have an additional $15 billion in funds during the first several years of the program. He also proposed requiring the federal government to cover 75% of the cost of coverage for people with catastrophic health care costs -- those amounting to $50,000 or more -- who would be enrolled in a new "premium rebate pool."

He said his new plan would lower health insurance premiums by 10% and savings would be passed on to employees. Kerry also said he would allow people the option of buying into the Federal Employees Health Benefits Plan; those opting to do so could receive tax credits and other subsidies.

Further Kerry said he would end legal provisions allowing drug companies to block generic medications from entering the market and require pharmacy benefit managers to disclose any financial incentives they receive from drug makers.

"Focusing on coverage without reducing the costs of health care for all Americans is treating the symptoms and ignoring the disease, the cause," Kerry said.