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October 13, 2004
Details Matter: A Closer Look at Senator Kerry's Health Care Plan
The employer premium rebate proposal would no doubt appeal to some major employers and health insurance executives. They would have an opportunity to off-load the high costs of high-risk enrollees onto the taxpayers.
In other words, the proposal would be an engine of major cost shifting. Jeffrey Petertil, an independent consulting actuary, says that the proposal would make insurance premiums more “predictable,” but it would be costly and would “supplant” the reinsurance market, “so it is a bigger step toward national health insurance than may be evident from a quick read of the idea.” In any case, billions of dollars of additional cost shifting in the health care sector would not add one cent of value to patient care.
Posted by Tom Troceen