Later On

A blog written for those whose interests more or less match mine.

Universal health care: the state route doesn’t work

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Good post by Kevin Drum, commenting on an article by Ezra Klein on the state initiatives (in California and Massachusetts) to provide universal healthcare within the state. Surprisingly (at least to me) this turns out to be a bad idea. The short case:

For starters, they’re almost inevitably cut back during recessions when costs grow (because more people are out of work) and state finances are strapped (because tax receipts are lower) — and the cutbacks usually provoke a death spiral that’s irreversible. State plans also attract the chronically ill in disproportionate numbers, a version of adverse selection that prompts death spirals every bit as effectively as recessions. Finally, most states don’t have the clout to make the necessary regulations work. Insurers can simply pick up their ball and go elsewhere — and they do.

But read the whole post. It’s pretty clear that it’s going to be national healthcare or bust. (The article sounds good, too—the post links to it.)

Written by LeisureGuy

12 July 2007 at 8:41 am

Posted in Government, Health, Medical

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