Forecasting the Effects of the Mitchell Health Bill
The health refonn plan proposed by Senator George Mitchell CD-ME) attempts to increase the number of people with health insurance by offering generous subsidies to induce voluntary compliance. Employer mandates would kick in only if the fraction of people with insurance failed to reach 95 percent in a state by the end of the decade. Reaching that goal is unlikely, however. The reason is that the Mitchell bill would allow people to purchase insurance at community-rated premiums after they get sick - thus encouraging them to go uninsured until an illness occurs.
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