by Chidem Kurdas
Political theater as it is, President’s Obama’s call for a health reform summit to be held on February 25th at Blair House presents an opportunity to publicly air the need for one critical ingredient.
Health insurance exchanges would give consumers information about and a choice among health insurance policies—if they work, a very big if. Democrats want to require states to set up exchanges, while many Republicans would encourage them without making it compulsory.
Insurance marketplaces face an uphill battle of adverse selection. People who expect to have expensive health problems buy policies, while the young and healthy don’t—high costs and a small customer base guarantee that the insurance will be very expensive, a problem further exacerbated by government mandates that the policy cover every medical service under the sun. All this just about dooms the exchanges. Continue reading