Saturday, September 21, 2013

GOP Wants to Replace Obamacare with GOPcare

The Republican alternative to Obamacare is just another plan that will keep government involved in healthcare. Republicans aren't eliminating coercion, whereby the healthy must pay for the care of those, who don't have health insurance. It is just structured a bit differently.

Avik Roy reports:
[M]any Republicans and conservative health wonks support using high-risk pools as a “transition to a freer health-care market.” In theory, high-risk pools allow us to subsidize truly uninsurable people with pre-existing conditions in a separate, taxpayer-subsidized insurance pool, while leaving everyone else free to pursue the health insurance approach of one’s choice.[...]However, like any government-driven intervention into a private market, high-risk pools do come with several caveats, caveats that we should fully consider. In particular, high-risk pools still require government involvement in the pricing of risk, something that political entities tend to do poorly, opening up future fiscal liabilities[...]
[L]ibertarians could make the[...]objection: that high-risk pools, just like Obamacare, give people an incentive to go without insurance, knowing that if they fall ill or get injured, they can qualify for a high-risk pool. 
Bottom line: GOPcare is market distorting and will cost the taxpayer dearly This is somehow the best Republican cronies can do as far as an alternative to Obamacare socialism which is market distorting and  and will cost the taxpayer dearly.

(ht Felix Bronstein)