According to John Goodman, from the National Center for Policy Analysis (NCPA), McCain’s health care reform is the more fundamentally sound of the two candidates plans ~~ Senator Obama’s health care plan will be profiled next in the 2nd part of this two part series.

Currently taxes are used to encourage the purchase of private health insurance, Obama’s plan would largely keep this intact while McCain’s plan would revamp it and put in place a systemt that would be fairer and more efficient in insuring the uninsured and keeping health costs contained.

Under the McCain health care plan, employers could no longer buy health insurance with pretax dollars. Insurance payments made by employer on behalf of employee would be taxable to the employee (like wages). However, every individual would get a $2,500 tax credit (and every family would get $5,000) to be applied against these taxes owed.

The McCain plan does not raise or lower taxes. Instead, it takes the existing system of tax subsidies and treats everyone alike, regardless of income or job status.  Low to moderate income families would receive as much tax relief as the wealthy.  Similarly, people who buy individual health insurance would receive the same tax relief as well.

Another interesting facet of McCain’s health care plan would allow people to purchase health insurance accross state lines, thus creating a marketplace with more options and a more competition, which would drive down prices.

Goodman’s conclusion on these competing health care plans is that

The McCain plan will not solve all our health care problems. But it has a far better chance of positively reforming the system than any other plan that has been proposed this campaign season.

As the election approaches, there will be more developments and editorial regarding health care reform that we will cover here at healthinsurancesort.com