Senator Baucus’ plan is a major contribution to the health care debate, as it would extend coverage to tens of millions of uninsured Americans and improve insurance for millions of Americans who already have coverage — through reforms that deal with matters such as pre-existing conditions — and do so while fully offsetting the costs, and beginning to slow the growth of health care spending. The plan does suffer, however, from two key problems that need Congress’ attention: insufficient subsidies to help low- and moderate-income people afford health coverage and out-of-pocket costs, and a “free rider” provision that would give employers disincentives to hire prospective workers from low-income families, especially parents with children.
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