March 28, 2012

Thought for Medicine

Rework the mandates: Individual and Corporate

I came across this supremely interesting point.
The basic difference between Medicare and PPACA mandates is that PPACA mandates healthcare consumers to buy *Private* Insurance.

If only the PPACA had a self funding, catastrophic only, public option, then it would have been possible to mandate that one has to buy into that public insurance (just like Medicare), but can opt out of it on the intent of buying private insurance instead.

And the more people shifted into a catastrophic only Option, the prices of everyday healthcare, currently manipulated by health insurers to ridiculous figures to maximize their own importance and optimal net revenues, would crash in a direct market between the health user and the health provider. And what would help this mass shift to Catastrophic Only health insurance, seeded via the Public Option, would be an abandonment of the Corporate Mandate on Healthcare. Instead, the corporate mandate should be that all companies give a one-time bump to the pay of their employees by what they spent on employee medical coverage in say, year 2010.

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