Baucus writes up his health bill proposal
one feature that might help satisfy the more liberal members of the committee is that insurance companies could face a separate new fee to help pay for the plan. It would be determined based on market share, and could raise $6 billion a year starting in 2010, the sources said. . . .
And taxing private insurance will increase insurance coverage?
the Baucus plan would create transparency measures that make it easier for consumers to compare information and pricing, and require insurers to release details on their administrative costs. “If insurance companies pass this fee along to customers, they run the risk of losing out in a newly competitive environment,” according to a source familiar with the plan. . . .
Could someone please explain the reasoning here? Taxes can't get passed on to customers because of the "newly competitive environment"? If the demand curve is perfectly elastic, that would happen, but does this seem at all plausible?
It would also create a health insurance exchange, prohibit insurers from denying coverage to people with pre-existing conditions . . . .
If insurance is not mandatory for everyone, this will eliminate insurance. If insurance is mandatory, this will eliminate anything above the minimum level of insurance.
"change the health care delivery system by rewarding doctors for quality of care rather than the quantity of services. . . . "
If this is such a great idea, why don't insurance companies offer it?