Monday, May 7, 2007

Health Care Connectors

The health-care connector model originated with the Massachusetts health plan last year. It expands section 125 cafeteria plans to provide portable, tax deductible health insurance for employees and individuals. We have yet to see its outcome in Massachusetts, but it already faces regulatory challenges in other states.

By itself, a connector may be a good idea, but state governors seeking universal health care are facing the challenge of state health-care mandates and federal law, which inhibit a connector from serving as a truly cost-effective and competitive model for health insurance.

We must deregulate health care first, to provide diverse and cost effective health plans in every state for every American, and we must do that before we try to patch up and further complicate health care with new law.

For the full text of this paper, please visit: http://www.pacificresearch.org/pub/hpp/2007/hpp_04-07.html