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Healthcare reform too late for some

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Healthcare reform too late for some

Sharmila Devi Last Updated: February 28. 2009 9:30AM UAE / February 28. 2009 5:30AM GMT

NEW YORK // President Barack Obama's budget promise to spend US$634 billion (Dh2.32 trillion) over the next decade on healthcare reform comes too late for a couple whose health insurance is costing them their home.

Adam and Aimee Freeman, who are self-employed real estate brokers in North Carolina, had to choose between paying their $1,000 monthly insurance premium or their mortgage. Without hesitation, they put their sick baby daughter first and expect their house to be seized in foreclosing procedures next month.

Around 50,000 people a week have read about their baby Kayleigh's progress in a blog Mr Freeman created after she was born 12 weeks early last June, weighing only 1.1 pounds (500 grams).

Kayleigh has been in hospital ever since and had four major operations. She might be able to leave next month, by which time she may have no home.

Mr Obama's central message as he campaigned for the presidency was that he would help families like the Freemans by cutting health costs and also extending coverage to some 46 million Americans who have no health insurance at all.

His health reform was announced on Thursday as part of a 140-page budget blueprint, which also included a radical overhaul of education and energy. The federal spending plan for next year was $3.55 trillion, with reforms to be financed in part by taxes on the rich and pollution surcharges.

The budget's details will be presented in April but Republican critics have already pounced on Mr Obama's deficit spending as he seeks to steer the US out of a deepening recession. The plan projects a $1.75 trillion deficit for this year, representing 12.3 per cent of the total US economy, the largest since the end of the Second World War.

John Boehner, the leader of Republicans in the House said: 'The era of big government is back, and Democrats are asking you to pay for it.'

He also suggested Mr Obama's proposed tax increases would reach deep into the middle class.

Richard, another self-employed real estate broker, said he paid $1,500 a month for health insurance covering himself, his wife and two children in Connecticut. He used to work in the health insurance sector and saw first-hand what he called an expensive, complex and inefficient system.

'I think something has to be done because our healthcare system is even impacting our ability to compete in global markets. Look at General Motors, where the health costs of its workers adds about $1,200 per car,' he said.

'But the health system has so many moving parts. The pharmaceutical companies, doctors, insurance companies, they all realise they have to accept some change but will strongly resist anything that takes us towards socialised medicine, as will many Americans.'

Even some of Mr Obama's Democratic supporters who wanted change were sceptical about his ability to deliver.

Carole Brazsky, 65, a retired social worker in Scottsdale, Arizona told AFP that her savings have been depleted by rising health costs and Martin Prior, 40, an electrician from California said the budget was 'a disaster' due to the large deficit for the 2009 fiscal year.

On the New York Stock Exchange, shares in healthcare companies fell on Thursday afternoon in response to Mr Obama's health reforms, specifically the proposed cuts in government payments to private insurance plans.

Opinion polls show that Americans regularly identify health care as one of their most pressing domestic concerns.

'We are making a historic commitment to comprehensive healthcare reform,' Mr Obama said when presenting his budget.

'It's a step that will not only make families healthier and companies more competitive but over the long term, it will also help us bring down our deficit.'

But some analysts questioned whether Mr Obama's goals were realistic at a time when the economy is still in crisis and the surging deficits threaten to burden a future recovery. 'There are some good things in this budget but a lot still seems very wasteful. The market is crumbling around us and economies are in the tank,' Dan Cook, senior market analyst with IG Markets in Chicago, told Reuters.

Meanwhile, one in four Americans said someone in their family had put off healthcare because they could not afford the high costs, including 16 per cent who postponed surgery or a doctor's visit for chronic illness, according to a Kaiser Family Foundation poll. It showed more people were relying on home remedies or over-the-counter drugs. Fifteen per cent cut pills in half or skipped doses of medicine.

More Americans who used to get health coverage through group plans offered by their employers are losing their jobs because of the downturn. If they can afford it, they buy insurance on the open market but those with pre-existing conditions are often denied coverage.

Preventive health, such as check-ups and screening, is undertaken only by those Americans who can afford it, such as Louise. The freelance television reporter said she paid $300 a month in health insurance premiums. But in the last month, she paid out almost $1,000 for 'extras' including a gynaecological check-up and routine blood tests. 'Every time I see the doctor, I have to pay an upfront fee of at least $35 and that even with insurance,' she said.

Richard, the property broker, said he supported Mr Obama's plan to undo Bush-era tax cuts for households with income of $250,000 or more annually.

'Most states have health programmes to help those who earn less than $80,000 while the rich don't have to worry about bills,' he said. 'It's those of us earning between $100,000 and $200,000 a year, the middle class, who are struggling the most.'

sdevi@thenational.ae

Additional information:

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