• More red than purple

    A colleague at Boston University has unveiled a “purple” health plan, with 5 Nobel Laureate in Economics amongst the endorsers. Maybe I’m color blind, but I just don’t see the blue in this plan.

    Don’t look for Paul Krugman to join them soon. The plan is quite red:  nationally capped vouchers delivered exclusively through private insurers and providers. Medicare & Medicaid go away; as does administered pricing and every cost-control feature in the ACA.

    The only plausible blue element is the individually risk adjusted waiver and the non-discrimination rules, but plans can still set prices so I predict the same trendlines as the Ryan proposal: everyone pays more out of pocket.

    One more idea in the plan – eliminate the employer health insurance tax exclusion from income. But that’s hardly blue, since it was proposed by President Bush.

     

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    • other blue points:

      1) Mcare, Mcaid, Commercial merged

      2) Insurers provide a standard plan, constructed by docs and wonks, covered by voucher.

      What it does not say, and why rush to judgment premature, is whether a requisite number of plans much cover the standard plan and how?

      There is vagueness yes, but the risk shift is not altogether apparent, but not as blatant as Ryan’s plan. With latter, risk goes to enrollee, here, a standard plan issuer must contract to deliver the right product at the right price. They have to push the system and get costs down.

      If, like mentioned above, there are 2 standard plans, and an infinite number of others with OOP costs galore, then wild, wild, west scenario likely.

      Need more details.

      brad