DES MOINES -- Iowa Lt. Gov. Patty Judge on Friday said that Republican presidential nominee John McCain's health care policy could leave thousands of Iowans who currently have employer-sponsored health insurance plans without coverage.

During a press conference on the steps of the State Capitol, Judge, a Democrat, said McCain's policy would leave millions of Americans at the mercy of the free market, and she criticized McCain for his plan to tax the health benefits employees receive through employer-sponsored health care.

"His proposal actually encourages businesses to drop their health care coverage and leave those working families to fend for themselves with health insurance companies," she said.

McCain's plan would grant $2,500 in tax credits to individuals and $5,000 in tax credits to families to buy private health insurance and emphasizes competition and free markets.

Judge praised the health care plan of Democratic presidential nominee Barack Obama, which calls for the creation of a national health plan to cover those who can't afford private insurance.

She said Obama's plan also will give aid to businesses that provide coverage for employees.

"[Obama] will work with employers who are providing health care for their employees to lower premiums by up to $2,500 per family per year and reduce costs for businesses and their workers by picking up the tab for some of the most expensive illnesses and conditions," Judge said.

McCain campaign spokeswoman Wendy Riemann said McCain's plan won't force Americans to give up employer-sponsored health care plans and it will leave intact important incentives for employers to provide coverage for workers.

"Employers would still have the same incentive to provide health insurance as they do today. At present, employers can deduct the full cost of employee compensation, including health insurance and other fringe benefits, as a legitimate business expense," Riemann said in a statement.

She countered that the Obama health care plan may encourage employers to stop offering health coverage because they know their employees can buy into the nationalized plan.

A report issued Friday from the Center for American Progress Action Fund found that 220,000 Iowans currently insured through an employer-sponsored plan could lose their coverage under McCain's policy.

The organization didn't conduct a similar analysis for Obama's plan.

"Despite alarmist and inaccurate charges, including those from liberal-leaning advocacy groups, employer-sponsored systems will not only be protected but strengthened under the McCain health care plan," Riemann said.

State Sen. Jack Hatch, D-Des Moines, said that last year a state-appointed commission on health care rejected plans similar to those McCain is proposing.

Hatch said McCain has lost touch with middle-class Americans and charged that McCain's health care plan would benefit only high-income Americans.

"It would do nothing for those individuals that have low incomes or have no insurance," he said.

Hatch also applauded Obama's vow to mandate health coverage for all children.

Contact Fred Love at (515) 243-0138 or fred.love@lee.net.