Bush's third term? | Bleader

Wednesday, August 8, 2007

Bush's third term?

Posted By on 08.08.07 at 08:07 AM

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Rudy "9/11" Giuliani proposes a health care plan like Bush's -- tax deductions for health insurance of up to $7,500 for individuals and $15,000 for families -- whose flaws are dissected by David Kendall at Ideasprimary.org:

"In short, he would unleash what wonks like me call 'the death spiral in insurance.' He would create an incentive for healthy workers to leave the insurance pools they join through their employer, and purchase insurance at a lower cost on the open market. That would leave sicker workers -- who might be unable to find coverage without the help of their employer -- as the only subscribers to their workplace health plan. And in turn insurers, worried that they would only be insuring workers who would demand a great deal of expensive care, would drive up premiums, eventually forcing employers to stop offering coverage all together."

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