Shifting Health Care Costs To Taxpayers

Do you see anything wrong with the following?

What was the budget for this again?

What’s wrong is two things in my view. First, the focus is on premiums and not health care costs. Second, all this does is shift the cost from the insured pool to taxpayers. What has been accomplished? Helping to limit premium increases is focusing on half the equation while hiding the real problem and cost in yet another government scheme. We are splashing around, but going nowhere.

Idaho, Oklahoma and Minnesota have passed bills that aim to blunt insurers’ costs for covering people who buy individual insurance and have health conditions that require expensive treatments. The measures would allow insurers to unload at least some of the expense of these enrollees’ claims onto state programs, typically using a version of reinsurance.

Last year, Alaska created its own reinsurance setup, an effort that state officials there say has helped to limit rate increases and keep its individual insurance market functioning. 4-24-17 States Seek to Shore Up Health Insurance Markets


1 reply »

  1. Depends. If we are talking about a pool where everyone (all legal residents) are in, where the pool covers expenses over a modest attachment point, say $25,000 per capita per year, and where the pool is self-insured, uses Medicare covered charges, and is operated at cost, that’s OK – where taxpayer dollars are also sourced with a per capita tax – that can be funded as part of any insurance policy.

    Otherwise, just a slightly different taxpayer funded subsidy to buy votes.


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