Thursday, October 12, 2017

Associated Health Plans

Now
The mist across the windows hides the lines
But nothing hides the colors of the lights that shine
Electricity so fine
Look and dry your eyes
--Joe Jackson

Earlier today, President Trump signed an executive order that permits people to purchase health insurance across state lines. The blueprint for this order came from Rand Paul, who posits that this will allow small buyers to band together and form 'association health plans.' The prospective bargaining power of these AHPs promises to push down premiums for many Americans.

Paul discusses the executive order here.

The increased competition and buyer bargaining power facilitated by the order makes it potentially one of the best health care market 'reforms' in many years.

And the beauty of it, as RP has noted, is that this plan "costs zero dollars" and sidesteps the dysfunction on Capitol Hill. Instead, it frees the market to do what it does best via its 'invisible hand.'

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