Wednesday, July 29, 2009

If You Build A Good Public Plan, They Will Come

A strong public plan on a weak exchange will fail because it won't attain sufficient market share. It's as simple as that.
Ezra's been saying this for a while, but it seems way too Big Bang Theory of Legislation. If you have a strong public plan that cuts costs, but it's on a limited exchange, the next thing that's going to happen is that there's going to be massive political pressure to expand the exchange. Demonstrate to Ford and GE that their health care costs will in fact be lower by operating a cheap public plan in front of their eyes, and they'll knock some Cigna heads in to get access to it in a subsequent session of Congress. When the rest of corporate America takes on the big insurers, the results will be awesome. If there's some reason this doesn't work, I'd be interested in hearing what it is.
Post a Comment