Policy Update

New Study: Other Health Care Proposals Offer Alternatives to Bush's

The Commonwealth Fund has recently released a study that compares various healthcare reform proposals introduced by members of Congress over the past two legislative sessions. President Bush's proposal to provide tax deductions of $7,500 to individuals and $15,000 to families for purchasing health insurance was also evaluated. This is a critical area for caregivers who quit their jobs to give care—many lost health insurance in the process, and are too young to qualify for Medicare.

The plan that would save the most per year was one by Rep. Pete Stark (D-CA) that would expand Medicare, thereby saving families $142.6 billion in 2007 and covering an additional 47.8 million U.S. residents. It would cost $154.5 billion in the first year, but it would also reduce overall health care spending by an estimated $60.7 billion by reducing the costs of insurance administration and prescription drug coverage. Stark's AmeriCare bill, originally introduced two years ago, is expected to be re-introduced this year. The president's plan, which would provide coverage for an additional nine million people, fared among the worst proposals considered: It would reduce health care spending by only $11.7 billion annually, at the cost of reducing the comprehensiveness of coverage and inducing lower utilization of services. Read More

California Takes the Lead in Funding Stem Cell Research

In 2004, California voters approved Proposition 71 to create the California Institute of Regenerative Medicine (CIRM). The agency administers $3 billion from the sale of state bonds to fund stem cell research. Recently, the agency announced new grant awards worth more than $75 million to 29 research teams at 12 non-profit organizations statewide. The grants will fund ongoing and new human embryonic stem cell research projects. While not necessarily a cure-all, stem cell research does hold some promise for certain cognitive disorders.

The controversy surrounding the stem cell issue has caused the fledgling agency difficulties in disbursing funds. The Bush Administration has supported restrictions on stem cell research, and officials at CIRM have said that the agency chose to focus on human embryonic stem cell research (currently the most controversial type of stem cell research) because of the gap in research created by these federal funding restrictions. A state appeals court has upheld Proposition 71's constitutionality, but an appeal to the California Supreme Court is still possible. And a lawsuit challenging the agency's legality has frozen funding for the time being. The current funding was provided through donations and state loans, including a $150 million state loan authorized by Gov. Schwarzenegger to keep the agency running while the lawsuit is pending. Read More

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