Market-Based Reforms Could Expand Insurance Coverage in NY

Cross-posted from State House Call.

By John LaPlante

The Manhattan Institute has published a study by Steve Parente and Tarren Bragdon that examines the potential for “market based” reforms for New York. An op-ed by Paul Howard summarizes the results. Mr. Howard writes that repealing New York’s current community rating and guaranteed issue laws “would lower premiums and help as many as 37 percent of the uninsured there to buy private, unsubsidized coverage. It would also help reserve scarce tax dollars for the poorest and sickest New Yorkers.”

When combined with other reforms such as buying coverage across the state line in Connecticut and Pennsylvania, and reducing the mandatory coverages in New York, would lower costs by 24 percent and 18 percent respectively. He says, “Parente and Bragdon’s report offers several lessons. While recent legislation — like the draft Senate Finance bill — would require all Americans to buy insurance, GI and CR regulations will drive up the cost,” and “Congress’ mistake is trying to make 90 percent of the insurance market fit the 10 percent of people who need help. These efforts are well meaning, but they’ll wind up making a bad situation worse.”