CNN Money: Election: Your health insurance at stake — Younger, healthier workers likely wouldn’t abandon their company-sponsored plans, said Douglas Holtz-Eakin, McCain’s senior economic policy adviser. “Why would they leave?” said Holtz-Eakin. “What they are getting from their employer is way better than what they could get with the credit.”
In addition to harshing on their own brilliant “you get to choose your own!” health care plan, there is a bigger gaffe hidden in DHE’s statement. The problem, of course, isn’t that employees would “leave,” it’s that employers would. Flashback:
Only about 60% of employers provide health care coverage. McCain’s program removes the incentive for employers to provide it so I expect a lot of them will stop providing it. More Americans will be on their own, those with preexisting conditions will not get insurance. And it provides no incentive for employers to start covering employees. For small businesses, the situation is worse – only about 45% provide health benefits.