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Dec 15, 2009
Uwe Reinhardt suggests that this is a good metaphor for what will happen if the Medicare buy-in goes through. Patients will end up in a mud bath.
6 Responses to “A Pictoral Argument Against the Medicare Buy In”
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Helium
December 15th, 2009 at 12:08 pm
The whole premise of a Medicare buy-in for 55 year olds does not stand to reason. This group would have to be charged premiums far higher than they are willing to pay for such a plan to be actuarially sound. Soon, there would be calls for government subsidies to reduce premiums.
December 15th, 2009 at 12:24 pm
The mud and muck in the photos make everything crystal clear.
December 15th, 2009 at 2:38 pm
I agree with you Liz. Great pics.
December 15th, 2009 at 3:42 pm
The whole premise of Medicare is that it is subsidized by taxpayers, including but not limited to the Medicare payroll tax.
Community rated plans need either an individual mandate or a substantial subsidy to be viable. Medicare, risk pools, and employer-sponsored insurance are all subsidized. They would not survive for long if the subsidies were eliminated, or even eliminated relative to competing underwritten plans.
Of course, if the community rating requirement becomes law then all insurance will be expensive for the healthy as well as the for the sickly. In that case perhaps unsubsidized Medicare would seem competitive with other available plans, aided by cost-shifting.
December 15th, 2009 at 6:13 pm
I think we owe Uwe a round of thanks. He’s usually so wrong about things. But he seems right on the mark on this one.
December 16th, 2009 at 6:26 am
Maybe John Goodman and Linda Gorman and others who post here are bringing Uwe around.