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Funding Measures Overview on Health Insurance Plan

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You are a member of a presidential commission appointed to consider a mandatory national health insurance plan, and the question of how to fund the plan is being discussed. Specifically, three separate options are being considered to generate an average of $4,000 per worker: a flat mandatory premium, a doubling of the current 7.65% payroll tax that comes out of peopleâ??s pay to cover Social Security and Medicare, and a 7% increase in income tax. Think about this from the perspectives of three workers: one who makes $25,000 per year; one who makes the same in salary but also has $1,000 in investment income; and one who makes $85,000 per year, including $10,000 in investment income. Considering the relative financial contributions it imposes on individuals such as these, which of the three funding measures would you support and why?

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Solution Summary

Several funding measures in this case are considered.

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