Republican’s Obamacare

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My favorite Keynesian nailed it again. The Republicans have no plan. Universal coverage can only be achieved in one of two ways:

  1. a one payer system – not politically feasible
  2. a three part strategy of regulation, mandates, and subsidies.

Assuming that the powers that be believe that everyone should have health insurance, even if they have preexisting conditions, then:

  • Mandates: Everyone has to be in the insurance pool (like it or not).
  • Subsidies: There have to be subsidies for those than cannot afford the insurance.
  • Regulation: The system must be regulated. For universal healthcare insurance the federal government sets the rules and the states implement the rules.

Without this three part structure the system will not work and millions of people will be pushed out of the healthcare system. The required structure is simple and to quote David Leonhardt, New York Times Op-Ed Columnist:

The debate over health care, and Obamacare, is less complicated than it often seems. …At root, it’s a debate over whether affluent people and healthy people should help pay for the medical care of the middle class, the poor and the sick

In another New York Times editorial healthcare experts identify 7 questions that policy makers must address –  Seven Questions About Healthcare Reform.

It is going to be very interesting to see how the Republican’s wiggle out of this one