It's different this time. At least, some observers are saying so (Krugman-sensei, for instance).
What's different is that, post-Bush, the health-industry has learned that the government is an easy mark.
Look for Obama's plan to turn into a giant subsidy, rather than a full metal jacket reform.
Schumer's "compromise" looks like an invitation for adverse-selection (i.e. all the worst cases end up on the government plan, so government premiums will be higher than private). The idea that the Government should fight "fair" is radical and could be a poor insurance design.
Hard choices have to be made. The private insurance market needs to change to a re-insurance and catastrophic insurance market (except for the most wealthy, who may never go on a government plan for basic). The USG will pick up basic medical care, via single-payor, for everyone.
Tuesday, May 12, 2009
Health Care
