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NewsFlash: February 2, 2007

A Health Plan That’s No Cure

President Bush’s health plan proposal is touted as being budget-neutral and offering a big tax break to more than 100 million people, but it does little for those without insurance and actually harms those with modest- to high-quality health care plans.

In today’s Snapshot, EPI economist Elise Gould shows why we should be skeptical about this health care proposal. Gould explains how the proposed health deduction will steadily erode over the coming years, and how an expensive tax benefit will be taken away from those with comprehensive health insurance and spread to those with low-cost, cheap plans. As a result, there will only be 3 million fewer uninsured—that’s barely over 6% of the 47 million uninsured today.

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