California
Congressman Pete Stark introduces AmeriCare… Groundbreaking legislation would
provide universal coverage by building on Medicare and the employer
system
WASHINGTON, D.C. – U.S. Representative Pete Stark (D-CA), Ranking
Democrat on the Ways and Means Health Subcommittee, today introduced
the “AmeriCare Health Care Act” with the support of U.S.
Representative Jan Schakowsky (D-IL) and more than 25 of their
colleagues. AmeriCare is a simple and practical proposal for
universal health coverage that builds on both Medicare and the
employer-based system.
“Debates on healthcare tend to occur every ten to fifteen
years, when costs rise to a level that attracts national
attention. As we edge closer to our next discussion, the
fundamental question before us is if medical care is a civic
and social right like police and fire services, education,
and national defense,” said Stark. “While Republicans are
fixated on outlawing gay marriage, stem cell research, and
flag burning, I am offering a new direction for health care
in America. AmeriCare builds on Medicare, an efficient,
popular, and successful program, to provide universal
coverage with minimal disruption to our current system.”
Under the “AmeriCare Health Care Act,” people would either
receive coverage through their employer or through AmeriCare,
a new program modeled on Medicare. AmeriCare would provide
preventive, physician, hospital, and mental health services,
as well as maternity coverage and an affordable prescription
drug benefit. It would also impose a limit on out-of-pocket
costs.
AFL-CIO Director of Legislation Bill Samuel said: "Health
care ranks among our members’ greatest concerns – paying for
it, keeping it, worrying about how to cope with medical
bills if it is lost. The dismal trends in health care cost
and coverage hit too close to home for working families. We
have reached a crisis that demands bold initiatives. AmeriCare
takes a thoughtful and sensible approach to provide all
Americans with access to affordable, comprehensive, quality
health coverage."
AmeriCare would provide additional benefits for children
under age 24 and individuals with income less than 300
percent of the poverty level. Supplemental benefits could be
offered by employers or purchased through private insurance
companies. Sharing risk and responsibility, AmeriCare would
be financed through contributions from employers,
individuals, and states, all of whom pay into our current
health care system.
“AmeriCare is a bold and thoughtful proposal that takes us
down the most promising road to universal health insurance,”
said Yale University Professor Dr. Jacob Hacker. “Rather
than try to reinvent the wheel or upend parts of our present
system that work, AmeriCare builds on employment-based
insurance and the Medicare model to ensure that every
American has access to a secure, affordable, and
comprehensive health plan. This valuable legislation – which
has the best chance of any proposal for universal coverage –
could transform America for the better.”
Unlike the current system, AmeriCare would save billions of
dollars by utilizing Medicare’s highly efficient
administrative infrastructure. Whereas many private insurers
devote more than 30 percent of funds for marketing,
administration, and profit, Medicare operates on a two to
three percent margin. AmeriCare would also require the
Secretary of Health and Human Services to negotiate with the
pharmaceutical industry for reasonable prescription drug
prices and expand the use of health information technology
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