NCPA - National Center for Policy Analysis


November 13, 2008

The sweeping health reform plan proposed by Senate Finance Committee Chairman Max Baucus (D-Mont.) suffers from several expensive and fatal flaws, according to Devon Herrick, a health economist with the National Center for Policy Analysis.

Herrick called the Baucus proposal a blueprint for economic disaster in health care coverage for Americans.  Moreover, it would:

  • Destroy any choices that consumers have to select health coverage that meets their individual needs.
  • Stick consumers with a government-designed and regulated health plan that will drive up costs and limit access for too many consumers.

Whenever these types of regulations are imposed at the state level, premiums have jumped two to three times the national average, says Herrick.  Mandated coverage would force consumers to buy plans with benefits they may not want at prices they cannot afford.

The Baucus plan includes many of the same elements implemented in the Massachusetts mandated health plan, which Herrick says is now suffering from massive cost over-runs for the state and escalating premium costs for consumers.  Many newly insured patients have been unable to find doctors willing to treat them under the new reimbursement levels.

The solution, says Herrick, is portable coverage that moves with workers from job to job, and that allows families to choose the level of benefits they need at a cost they can afford.

Source: News Release, "Baucus Health Plan is Fatally Flawed; Plan Could Be Economic Disaster According to NCPA Economist," National Center for Policy Analysis, November 12, 2008.


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