Keen Insight Into the Obvious

In a comment by Mankiw at Harvard he notes the obvious absurdity of the new Health Care plan. It was written to cover everything. He clearly notes that all other insurance plans cover big items which can be catastrophic. Health Care should be that was as we had argued in our Book a few years ago.

Our recommendations were simply:

1. Universal Coverage: Others should not have to pay for your problems, especially catastrophic ones. Thus we pool our big risks.

2. Individual Coverage: That means like auto and home insurance you personally foot the bill.

3. Mandated Maximum Risk Coverage: This means that if you want to cover everything you can at your own costs but you are covered for the really big things.

4. Payment Support Coverage: For those who cannot afford coverage then the Government may pitch in.

5. Lifestyle Risk Fees: If you chose to smoke, eat in excess, etc then you get to pay more.

6. No "Somatic" Risk Charge: If you were dealt bad genes then you do not get penalized.

Simple, we worked out all the details, it costs much less, and people are happy. Would Washington buy this? No way, they could not control it. Perhaps Mankiw could follow up on this thread, his observation is spot on.