Congressman Jim Langevin
constituent serviceslegislative information news center photo gallery contact
Universal Health Care - American Health Benefits Program return to home page

on this page: 

What is the American Health Benefits Program? | What are the main principles of the plan? | Who pays for the American Health Benefits Program? | Is this one-size-fits-all health care? | Why Do We Need Health Reform? | Other Resources

Today, approximately 46 million Americans who lack health insurance coverage – leaving one in six Americans without access to proper medical care. What makes these figures more shocking is that over 80% of the uninsured come from working families. In Rhode Island, a state that has a strong record of providing health insurance through public and private partnerships, about 9% of the population remains uninsured. As the cost of health care continues to rise, it will impose an increasing burden on our families and place American employers at a further competitive disadvantage. Therefore, it is our duty as policymakers to offer a new vision and new solutions to fix our ailing health care system.

Affordable health care for every American has been a longtime priority of mine. For this reason, I have worked diligently to establish a bipartisan proposal for universal health care. This plan was developed with input from physicians, nurses, advocates, and leaders in the health care and business communities. On February 12, 2008, I introduced H.R. 5348, a bill that would establish the American Health Benefits Program (AHBP).

What is the American Health Benefits Program?

The American Health Benefits Program is based on a tried and true program – the Federal Employees Health Benefits Program (FEHBP). Currently, over 8 million federal employees, retirees, and their dependents receive health insurance coverage under FEHBP, as well as members of Congress. The program uses a system of managed competition between private insurance carriers and provides enrollees with a broad menu of health coverage options. Its use of bulk purchasing power allows the program to contain costs and bring stability to the system. In 2007, this resulted in an average premium increase of just 1.8%, compared to the private market, which saw an average increase of 6.1%. My proposal would use this successful program as a template to provide similar benefits to all Americans.

What are the main principles of the plan?

  1. Universal Coverage – AHBP will provide health insurance to all Americans.
  2. Choice – Provide Americans a choice of their health plan.
  3. Shared Responsibility – Individuals, employers, the government, hospitals and insurers all have a responsibility to ensure an efficient, affordable health care system.
  4. Affordability – The plan must be affordable for individuals and employers.
  5. Portability – If you leave an employer or change states, you can take your plan with you.
  6. Continuity – Those who have coverage now should not have their benefits reduced to cover everyone
  7. Preventative Care – AHBP must promote healthy living and wellness.
  8. Healthcare Reinvestment – 90 cents of every dollar of the insurance premium will be reinvested into healthcare.

Who pays for the American Health Benefits Program?

Under this program, employers who would like to continue negotiating with private insurance carriers may do so, as long as the coverage they offer meets a basic standard set by AHBP. However, employer-sponsored coverage is proving to be more and more cost prohibitive, and it often takes a disproportionate share of time for businesses to negotiate and administer plans. That is why AHBP will give businesses a choice to pay instead a fixed, predictable payroll tax according to their size and average employee earnings. This new revenue will create a funding stream to allow for a fixed government contribution of 72% toward the health care premiums of every participating American. Individuals in AHBP will have a responsibility to pay for the remaining share of their premiums, to the extent that they can afford it, with the lowest-income earners receiving subsidies to ensure affordability.

Is this one-size-fits-all health care?

This new program is not a single-payer system, and it does not reinvent the wheel. Medicare, Medicaid, Veterans services and other public programs that are tailored to specific populations will remain intact. AHBP will use an expanded system of managed competition to ensure that private insurance carriers compete for enrollees on the basis of benefits, as well as efficiency, service and price. It will offer portable and continuous coverage and encourage investment in disease prevention and long-term preventative care, which decrease the cost of care over time.

Why do we need health reform?

Health costs in the United States are rising at an alarming rate compared to those in other developed countries in the global community. Yet despite the fact that the United States spends more per capita than any other industrialized county on health care, we are the only developed nation that does not guarantee health coverage as a right to our citizens. Instituting meaningful, systemic reforms will require a fundamental shift in how we view employer-provided coverage and health care delivery. While it is critical that businesses maintain a role, we must change our perspective of health insurance as a privilege or benefit tied to employment. Instead, we must begin to look at it as a right and responsibility to be shared by the community. Individuals, employers, health care providers and the government all have key roles to play in reaching a truly inclusive and efficient health care model.

I will continue to work with my colleagues in Congress so that this issue is given the attention in rightfully deserves. The time has come for policymakers at all levels to take meaningful action toward developing a health care system that really works for our nation - one that offers Americans choice, calls for shared responsibility and is affordable to all. I believe that this proposal introduces a practical model for universal health care and leaves room for further discussion.

 

 

Other Resources

» AHBP Short Summary
» AHBP White Paper
» AHBP Commission