Clarifying the difference between my proposal and Obamacare:

Mine offers three levels of the quality of care. They provide different sets of benefits. They have different costs.

Obamacare’s offers different payment plans for the one set of benefits.

2

My model last week may not have been clear.

So, on to the next slides.

Metaphor: A traveling salesperson can make a contract with hotel chains for stays for a year, choosing from three levels of quality of hotels.

Metaphor: A traveling salesperson can make a contract with hotel chains for stays for a year, choosing from three levels of quality of hotels.

Different people will want and/or can afford different qualities of hotels.

Poor people can always stay at Motel 6, free.

Others will buy a yearly contract for the chain of their choice.

“Young invincibles” & those who could afford it, but didn’t prepay, pay at a higher rate.

Likewise any upgrades pay a surcharge.

The blues pay for the poor people’s stays.

Rethinking since last week, I’d prefer the basic care be raised.

So Motel 6 should be raised to Super 8.

Now under the Affordable Care Act…

All Marketplace insurance plan categories offer the same set of essential health benefits.

The categories do not reflect the quality or amount of care the plans provide.The category you choose affects how much your premium costs each month and what portion of the bill you pay for things like hospital visits or prescription medications. It also affects your total out-of-pocket costs —the total amount you’ll spend for the year if you need lots of care.

From Healthcare.govhttps://www.healthcare.gov/how-do-i-choose-marketplace-insurance/

All Marketplace insurance plan categories offer the same set of essential health benefits.

The categories do not reflect the quality or amount of care the plans provide.The category you choose affects how much your premium costs each month and what portion of the bill you pay for things like hospital visits or prescription medications. It also affects your total out-of-pocket costs —the total amount you’ll spend for the year if you need lots of care.

From Healthcare.govhttps://www.healthcare.gov/how-do-i-choose-marketplace-insurance/

https://www.healthcare.gov/find-premium-estimates/#results/&aud=indv&type=med&state=ME&county=York&age0=63&employerCover

age=no&householdSize=1&income=50000

All receive “the same essential health benefits.”Metaphor: All salespeople stay at Best Western.

All receive “the same essential health benefits.”Metaphor: All salespeople stay at Best Western.

Under Obamacare, there are different payment plans for the same amount of care.

Same quality; but different payment plans.

For hotels: Now “premium” is the contract fee.The “co-pay” is the balance you pay on arrival.

The more you pay up front, the less due on arrival.

https://www.healthcare.gov/find-premium-estimates/#results/&aud=indv&type=med&state=ME&county=York&age0=63&employerCover

age=no&householdSize=1&income=50000

For healthcare, as the premium goes up, the co-pay goes down. I’ve set numbers roughly.

All people get same quality of coverage.I’ve set numbers roughly.

https://www.healthcare.gov/find-premium-estimates/#results/&aud=indv&type=med&state=ME&county=York&age0=63&employerCover

age=no&householdSize=1&income=50000

By paying for additional benefits, one (especially the rich) can get ritzier care.

dental

vision

specific diseases