I have discovered a proposal for “fixing” health care on the Cato Institute website that is an absolute hoot.She explains that in order to make it work, it requires that everyone, including young healthy people voluntarily buy in and also carry the insurance insurance, which sounds perfectly doable, right?
The plan (see PDF) is to eliminate employee health benefit insurance and all government health care support, and throw everyone into the private insurance market. Insurance companies would be allowed to risk-rate premiums, so that as people got older and/or sicker their premiums would go up.
However, Cato says, this doesn’t have to be a problem. The solution is … wait for it … insurance insurance. They call it “health status insurance,” but essentially it’s insurance insurance. It’s a separate policy you take that will insure you against catastrophic increases in your health insurance.
I’m not kidding. That’s the brilliant plan.