Florida’s Governor Charlie Crist (R) has proposed a stripped-down health plan with coverage for the basics – physician visits, emergency care, hospitalizations, and drugs, for $150 a month. He’s not setting the benefits, but rather proposing that commercial insurers develop their own plans.
There’s a lot to like about hizzoner’s proposal.
First, Crist wants guaranteed issue – insurers won’t be able to turn someone down for pre-existing conditions.
Second, families will be able to include their kids on their plans up till age 30. This does a couple things – many ‘free riders’ are the young newly-employed who would rather use their cash for stuff besides health insurance (and who wouldn’t?). This eliminates many of the free riders, makes sure they are covered, and thereby reduces the need for hospitals and other providers to deliver care for free when these kids run their motorcycles into walls.
Third, the state would increase its efforts to locate and cover children eligible for insurance under Florida’s KidCare program.
Nothing’s perfect, and the Governor’s plan does have one rather big problem. He wants to eliminate the Certificate of Need program which requires providers to jump thru regulatory hoops before they can open certain kinds of facilities. Unfortunately, in health care supply creates demand, and the end of the CoN process in Florida will increase costs.
Thanks to Florida HealthNews for the tip.
Feb
27
Joe, I agree – not everything is perfect, but what is amazing about this is the fact that the MARKET can come up with a pretty good solution without the government taking it over. If this works in FL, can’t we do the same nationally?
I agree, doing away with the CoN requirements is a mistake, especially in FL where they are struggling with malpractice rates. This provision will duplicate what has happened in TX where “Hospitals” appear to provide ER Services, but then really don’t have facilities to admit. Patient end up being transported by ambulance, causing additional expenses. Overall, not a good idea to remove CoN requirements.
Dorrence – I agree – the market can work, but only if the market is regulated appropriately.
What I find really interesting is that Crist is demanding guaranteed issue, a concept that is anathema to most insurers. But make no mistake, it is a rather drastic form of regulation. And exactly consistent with plans proposed by Obama and Clinton.
The CoN process is also an affront to free marketers, yet, as you note, serves a very useful, and necessary purpose.