It’s impractical and politically impossible, but it endorses six principles that are practical and politically possible and all of which are a major improvements over ObamaCare:
- Tax fairness: People at the same income level and with the same health status should get the same help from government when they purchase private health insurance.
- Universality: There should be some help for everyone, even people who fail to enroll in a health plan.
- Labor market neutrality: Health reform should not encourage employers to avoid hiring workers, to hire contract or temporary labor rather than regular employees, to hire part-time rather than full-time employees, or to break their commitments to provide post-retirement health care benefits.
- Portability: Employers should be encouraged, rather than discouraged, from offering portable insurance to their employees.
- Self-insurance: The tax law should treat saving for future medical expenses just as generously as premiums paid to third-party insurance and medical savings accounts should be allowed to be completely flexible ― wrapping around any third-party health insurance plan.
- Real insurance: When people switch health plans, insurers should be allowed to charge premiums that reflect real risks, but people should be able to buy the kind of insurance that protects them from premium hikes after their health condition deteriorates.
The plan. Henry Aaron’s criticism is brutal. Harold Pollack is kinder and gentler. Austin Frakt is actually somewhat supportive. BTW, the AEI plan is more progressive than the John McCain plan which in turn is more progressive than ObamaCare.