AMA Urges Expanding Health Care : Medicine: The plan strives for universal coverage by creating state risk pools to provide group insurance for the medically uninsurable.

The American Medical Assn. today proposed revamping the nation’s health care system by expanding Medicaid and requiring employers to provide health insurance to full-time employees.

The AMA’s 16-point plan would also create state risk pools to provide group insurance policies for the medically uninsurable, small businesses and others unable to afford coverage under the system now.

AMA officials, at a news conference, declined to put a total dollar figure on the package, but an AMA source, speaking on the condition of anonymity, said a “fair estimate” was about $60 billion.

Dr. Alan R. Nelson, AMA president, did not suggest specifically how the plan would be financed, but he said “almost certainly this would require some increased taxes.”

The physicians’ group said its proposals are aimed at offering health care coverage to all Americans, regardless of income, and preserving patients’ freedom to choose their health-care provider.

“The individual’s freedom of choice remains a cornerstone of the American system,” Nelson said.

Revision in the current system is “badly needed,” Nelson said, but “it would be counterproductive to ‘fix’ aspects of our system that are not broken.”

The AMA’s proposal is similar to a $66-billion plan recommended last week by the U.S. Bipartisan Commission on Comprehensive Health Care, known as the Pepper Commission for its first chairman, the late Rep. Claude Pepper (D-Fla.).

Both proposals are aimed at closing the gaps in the health care system.

The nation’s health care bill is expected to reach $600 billion this year, more than 11% of the gross national product. Yet more than 33 million Americans lack health insurance.

The highlights of the AMA plan include:

--Expanding Medicaid to all people below the poverty level, and establishing a uniform set of benefits. Medicaid now covers fewer than half of those living below the poverty line, and eligibility and benefits vary from state to state.

--Requiring employers to provide health insurance for all full-time employees and their families and eliminating state-mandated benefits. Employers would be allowed tax deductions to help with costs.

--Establishing state risk pools to make coverage available for the medically uninsurable and for others for whom individual health insurance policies are too expensive and group coverage is not available. About 15 states now have such pools.