Writes Michael Tanner of the Cato Institute: “Senate Majority Leader Harry Reid (D-NV) has announced that he has reached a super secret compromise on how to deal with the so-called public option for health reform.” Instead of a public option, “Congress would establish a program similar to the Federal Employees Health Benefit Program (FEHBP), which currently covers government workers, including Members of Congress. … In addition, the compromise plan would expand Medicare, allowing workers ages 55 to 65 to “buy in” to the program, and may also expand Medicaid.”
Tanner points out why this is a bad idea. To summarize:
1. FEHB premiums are rising faster than average.
2. Many insurance plans are dropping out or reducing participation.
3. Medicaid and Medicare are budget busters.
4. Medicare expansion threatens providers though cost-shifting.
Read the whole post: FEHBP Plan Is No ‘Moderate Compromise’.
