John McCain's Radical Agenda

A recent article by Bob Herbert in the NY Times titled "John McCain's Radical Agenda" raised dire warnings about the impact of the John McCain's proposed tax reform for health insurance:
http://www.nytimes.com/2008/09/16/opinion/16herbert.html?th&emc=th

In a nutshell, the McCain campaign proposes dramatic changes in the deductibility of health insurance. For too long, individuals and small business owners have not been able to deduct the full cost of health insurance from their taxes. In contrast, large employers are able to deduct the full cost.

John McCain would level the playing field. Basically the deductions would be the same for all. They would be limited to a refundable tax credit — $2,500 for a single worker and $5,000 per family — to be used “to help pay for your health care.” This may not be fully adequate, so the likelihood is that many working for corporations will pay more in taxes.

In many respects this makes a lot of sense. The problem is that it will drive many people into the private health care market which has many problems. There are little to no protections to prevent insurers from ejecting and charging huge premiums for individuals with health care issues. It is a real problem. The following is an excellent discussion of the implications "Ask the Experts: Tax Subsidies and Health Insurance":
http://www.kaisernetwork.org/health_cast/hcast_index.cfm?display=detail&hc=2536

The bottom line is that significant reform will be needed in order for this to not be a disaster for many people. It could be a good thing, but not at the current state of private insurance. One key question to ask when considering this policy and who to vote for is whether they are prepared to do all that is needed? To put it plainly would the McCain campaign be willing to support the needed regulation in order to make this a good thing and prevent disaster? If they don't plan to implement regulations at the federal level, how do they plan to ensure that all of the states will properly address this potential disaster?

Ray