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Mar 24, 2012

Economy: Economic News, Policy & Analysis - The Washington Post: Ryan’s budget and the path to single-payer health care

Economy: Economic News, Policy & Analysis - The Washington Post
Economy News: Get the latest headlines and in-depth coverage of economic news, policy, analysis and more from The Washington Post.
Ryan's budget and the path to single-payer health care
Mar 24th 2012, 00:12

Let's play a game: I'll describe a health-care bill to you. Then you tell me if I'm describing President Obama's Affordable Care Act or the budget released this week by Rep. Paul Ryan.

The bill works like this: The federal government subsidizes Americans to participate in health-insurance markets known as "exchanges." In the exchanges, insurers can't discriminate based on pre-existing conditions. Individuals can choose to go without insurance, but if they do so, they pay a penalty. To keep premiums down, the government ties the size of the subsidy to the second-least-expensive plan in the market — a process known as "competitive bidding," which encourages consumers to choose cheaper plans.

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