Kirsten Gillibrand did not raise her hand on July 27 when a debate chairman requested 10 presidential candidates who wished to eliminate personal health insurance. However, that’s the result she promotes.
Gillibrand, a Democratic senator from New York, backs a “Medicare for all” program that may cowl all Individuals, just like the Bernie Sanders and Elizabeth Warren plans. However, she wouldn’t pressure folks out of the personal insurance system. As an alternative, she’d let anybody join Medicare, in the event that they wished to, and drive insurance companies to compete for sufferers with the enormous government program.
“If they wish to compete, allow them to decrease their charges,” Gillibrand informed Yahoo Finance lately from her New Hampshire campaign headquarters. “Allow them to cover more stuff. I dare them to compete. I doubt they’ll.”
If Gillibrand is correct, thousands of People would willingly hand over personal insurance and be a part of Medicare as an alternative, paying premiums lower than what personal insurance coverage would value. That may ship insurers right into a kind of death spiral: As they lost sufferers they’d have to boost premiums to cowl an ever-shrinking pool of individuals, and rising premiums would ship increasingly more individuals into Medicare. The top outcome could be a de-facto single-payer health care system pushed by client selection rather than government fiat. Private insurers would exit of business as a result of they couldn’t match Medicare on high quality and value whereas also turning a profit.