I have discovered a proposal for “fixing” health care on the Cato Institute website that is an absolute hoot.
The plan (see PDF) is to eliminate employee health benefit insurance and all government health care support, and throw everyone into the private insurance market. Insurance companies would be allowed to risk-rate premiums, so that as people got older and/or sicker their premiums would go up.
However, Cato says, this doesn’t have to be a problem. The solution is … wait for it … insurance insurance. They call it “health status insurance,” but essentially it’s insurance insurance. It’s a separate policy you take that will insure you against catastrophic increases in your health insurance.
I’m not kidding. That’s the brilliant plan.
Of course, the insurance insurance would only be reasonably priced if young and healthy people are willing to pay for it along with their regular health insurance premiums. And Cato is against any kind of mandates. But young people are certain to be willing to pay for two separate insurance policies to pay for health care, even if the second one isn’t something they think they will need for years. Wouldn’t they?
You can’t make this stuff up.