Perhaps the most common question I'm asked about ObamaCare is: "Will I be able to buy my way out of it?" The answer is: "Not unless you're very rich."
The plan before the Senate creates a set of 50 state-based insurance "exchanges" that are established as markets for health plans. Consumers must buy policies from their employers or through the exchanges — but, either way, their choice of coverage is limited to one of four basic insurance plans that the government sanctions.
Private insurers will still compete to offer policies but must model their coverage on one of these four templates. In short, the Senate bill explicitly standardizes health benefits and then establishes elaborate mechanisms (including subsidies and penalties) to pay for them.
In effect, the plan creates a single national health-insurance policy. Consumers' only real option is to trade higher co-pays for lower premiums. But we'll all get the same package of benefits established by a series of new agencies and an "insurance czar" seated in Washington.
Once the exchanges are in place, the individual market — the ability to go directly to an insurer and buy a health-care policy — will disappear. You'll have only two places to buy insurance, in the exchanges or through your workplace.
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