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Reimbursement Roulette: The Baucus Bill’s Too Playful Approach to “Play-or-Pay” in Health Care Reform

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Listed:
  • Shawn Fremstad

Abstract

Two of the three leading health care reform proposals being considered by Congress—the House “Tri-Committee” health care reform legislation and the Senate Health, Education, Labor, and Pensions (HELP) Committee’s reform legislation—include sensibly designed “play-or-pay” provisions that require employers to pay an assessment if they do not offer insurance to some or all of their employees. The third leading health care reform proposal—the bill proposed by Sen. Max Baucus and currently under consideration by the Senate Finance Committee—also includes a play-or-pay requirement, but it is poorly designed and would be unfair to employers, harmful to employees, and impose wasteful expenses on taxpayers.

Suggested Citation

  • Shawn Fremstad, 2009. "Reimbursement Roulette: The Baucus Bill’s Too Playful Approach to “Play-or-Pay” in Health Care Reform," CEPR Reports and Issue Briefs 2009-35, Center for Economic and Policy Research (CEPR).
    • Handle: RePEc:epo:papers:2009-35
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    More about this item

    Keywords

    health care;

    JEL classification:

    • I - Health, Education, and Welfare
    • I1 - Health, Education, and Welfare - - Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H - Public Economics
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • D - Microeconomics
    • D6 - Microeconomics - - Welfare Economics

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