HLTH 385 Lecture Notes - Lecture 16: Guaranteed Issue, Community Rating, Adverse Selection
Medicaid
• Everyone with income <133% below the poverty level is eligible for it
o Should be available to everyone
o This is what is responsible for dropping uninsured rates
• Issues republicans are trying to combat/see with Medicaid
o This is very expensive - reason why republicans are trying to change it
o Want to change the way federal gov and state gov split the cost of Medicaid
• Current financing arrangement: 90% of cost is covered for beneficiates, federal
government spends 50-70%
• Tied to people not total dollars
o Bad insurance
Exchanges
• Guaranteed issue
• Community rating
o Age 3:1
o Smoker
• Penalty for not having insurance
• Subsidies
• Regulate benefit levels
• Expensive
• Penalty is bad
• Market is not working
o Adverse selection
Republican Plan V.1
• Change structure of subsidies
o Level of subsidies would go down
o Number of people eligible for subsidies would go up
• Age rating 5:1
• No penalty for having insurance
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