Democratic presidential candidate John Edwards wants to reduce the cost of U.S. health care by removing patents for breakthrough drugs and requiring health insurance companies to spend at least 85 percent of their premiums on patient care.
The former North Carolina senator was expected to discuss details of a universal health care proposal he released in February during an appearance Thursday at the Riverside Health Center.
Edwards' plan would remove long-term patents for companies that develop breakthrough drugs and then reap large profits because of the monopolies those patents provide, according to a statement by Edwards obtained Wednesday evening.
Edwards said offering cash incentives instead would allow multiple companies to produce those drugs and drive down prices.
He also was expected to detail a plan requiring health insurance companies to justify their rates by requiring them to spend at least 85 percent of the premiums they collect on patient care. He said New York, Minnesota, New Jersey, Florida already impose similar requirements.
"Three out of 10 health care dollars go to administrative costs. How much of this is spent on insurers giving families the run-around and figuring out how to deny claims?" Edwards said in the statement.
"Americans today aren't getting the quality of health care they pay for and can't afford the cost of the care they do receive," he said.
Edwards said Detroit, where General Motors Corp. (nyse: GM - news - people ), Ford Motor Co. (nyse: F - news - people ) and DaimlerChrysler AG (nyse: DCX - news - people )'s Chrysler Group spend $16 billion annually on health care costs and are expected to pay $114 billion in future retiree benefits, is indicative of health care ailments felt nationwide.
"Here in Detroit, the cost of health care is particularly crippling for business," Edwards said. "These businesses and their unions made a promise to workers and now it's time for the government to hold up its end of the bargain and lower health care costs."
Edwards previously has proposed that employers be required to provide health coverage to workers or pay into a government fund to support insurance, and allow workers to choose among plans.
A rival Democratic presidential candidate, Illinois Sen. Barack Obama, has proposed to provide health care to millions of Americans and more affordable medical insurance, financed by tax increases on the wealthy.
