Proposed Economic Model for Health Care

Health care is an issue that demands a lot of attention, and this is because it affects everyone in the American population. Various proposals and plans exist and they address the issue of health care. President Obama has proposed his own health proposal, which attempts to solve the health care crisis in the country. Also, he seeks to ensure that the economy recovers and this would be through taxing investments. Critics of the proposal believe that it will lead to wage growth reduction, employment reduction, and also slow recovery of the economy. The White House has pledged to help people earning low incomes, but the policy will instead affect them negatively (Campbell& Nell, 2011).

2011 to 2020, Heritage Foundation estimation analysis has been made, and it deals with matters related to the president’s proposal. Each year, 0.01 percentage of productivity points will be reduced, and the number of jobs lost will be 115000. The collected revenue will decline in that, the Gross Domestic Product will decline by $ 1.37 and this is in relation to each dollar. The wealth owned by Americans will be reduced whereby, every year, there will be a loss of $267 billion. In turn, households will have their stocks reduced drastically. Lastly, every year $ 17.3 billion of disposable household income is reduced. This means that various sectors of the economy will be affected by the president’s proposal. The proposal by Obama does not have the ability to benefit the American population, as its disadvantages have been known (Campbell& Nell, 2011).

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The Economic Policy Institute has come up with its own health care proposal. It seeks to ensure that Americans are provided with affordable and guaranteed health care. Americans should have access to insurance based on employment and even through Medicare. It will be easy to make sure that health outcomes are improved and medical costs are controlled. The people who will benefit from this health plan will save on many costs. Americans will no longer have to join Health Savings Accounts. People, who are employed, will have their health insurance deducted from their payrolls and all working class citizens will be insured (Hacker, 2007).

Hilary Clinton has for a long time proposed a health care plan, which will benefit Americans. According to her, there is a need to ensure that coverage costs of insurance are lowered as well as everyone benefiting from federal subsidies. The cost of her proposed plan would be on a yearly basis and amounts to $110 billion. The advantage of this proposal is that it covers aspects such as consumer choice, cost control and simplicity. The proposal mostly focuses on an individual mandate, and this is the reason why it is extremely favorable. According to some critics, disadvantages are brought about by Clinton’s proposal (, 2007). It is believed by Republicans that personal choice and freedom are restricted and it is also extremely invasive. Families and people, who earn low incomes, will be overburdened by the proposal and this is according to liberal Democrats (The Lewin Group, 2008). I believe that her proposal will bring about a desirable change in the American health care sectors. This is because it offers solutions whereby, everyone can afford health care. Currently, the White House has tried to implement this proposal in its health economic plan. Furthermore, the economic aspects of health care are addressed by Clinton’s proposal.





Campbell, Karen. & Nell. Guinevere. (2011). The Presidents Health Proposal: Taxing Investments Undermines Economic Recovery.  The Heritage Foundation. Retrieved from

Hacker, Jacob. (2007). Health Care for America. Agenda for Shared Prosperity. Retrieved from

Clinton offers universal health care plan. (2007). Retrieved from

The Lewin Group. (2008). Cost Impact Analysis for the “Health Care for America” Proposal Final Report by the Economic Policy Institute.

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