Thursday, October 8, 2009

State-Level Opt-Out Public Option

Charles Schumer (D-NY) and Tom Carper (D-DE) are floating a new idea: a public health insurance option that the States can opt out of if they aren't interested (how the decision will be made isn't clear right now). It's generated a lot of interesting discussion (here and here) and echos some of my earlier health care posts. It has the advantage of putting a stake in the ground. It has the disadvantage of discouraging state-level innovation. Let's see if the idea gets any traction...
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2 comments:

  1. AnonymousOctober 9, 2009 at 11:13 AM

    One reason we have access problems now is that states can virtually opt out of Medicaid by restricting reimbursement and benefits, and some do. It saves money, after all. Why would they be any more inclined to meet all their citizens' needs in this paradigm? We need a federal mandate. Gordon Ridley

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  2. G. W. PasdirtzOctober 12, 2009 at 1:41 PM

    From the Washington Post June 12, 2006:

    "After winning greater freedom from federal Medicaid rules, states are moving aggressively to transform the nation's largest public health insurance program, adding fees, restricting benefits and creating incentives for patients to take responsibility for their health."

    It still boils down to how the Federal rules are written. Relaxation of the rules was a Bush Administration idea and hasn't been helpful.

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